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Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

Toyota retires robots in favor of humans to improve automaking process

Mitsuru Kawai is overseeing a return to the old ways at Toyota factories throughout Japan. Having spent 50 years at the Japanese automaker, Kawai remembers when manual skills were prized at the company and "experienced masters used to be called gods, and they could make anything." Company CEO Akio Toyoda personally chose Kawai to develop programs to teach workers metalcraft such as how to forge a crankshaft from scratch, and 100 workstations that formerly housed machines have been set aside for human training.
The idea is that when employees personally understand the fabrication of components, they will understand how to make better machines. Said Kawai, "To be the master of the machine, you have to have the knowledge and the skills to teach the machine." Lessons learned by the newly skilled workers have led to shorter production lines - in one case, 96percent shorter - improved parts production and less scrap.
Taking time to give workers the knowledge to solve problems instead of merely having them "feed parts into a machine and call somebody for help when it breaks down," Kawai's initiative is akin to that of Toyota's Operations Management Consulting Division, where new managers are given a length of time to finish a project but not given any help - they have to learn on their own. It's not a step back from Toyota's quest to build more than ten million cars a year; it's an effort to make sure that this time they don't sacrifice quality while making the effort. Said Kawai, "We need to become more solid and get back to basics."

Junkyard Gem: 1991 Lexus ES 250

When the Lexus LS 400 first appeared here in late 1989 (as a 1990 model), sellers of German-made luxury sedans broke out in the shaky sweats and car shoppers flocked to see — and buy — this well-built statusmobile that retailed for about 60% of the price of the cheapest S-Class. Not attracting nearly as much attention at the time was the other introductory vehicle of the Lexus brand: the ES 250. Sold here for just the 1990 and 1991 model years, the first-generation ES was the most Camry-like of its kind and the hardest to find today. Here's a '91 in a San Francisco Bay Area yard. All of the ESs for the model's first couple of decades were based on the Camry, so they benefited from the Camry's famous reliability while suffering from its not-so-exciting image. Toyota made a good effort to make the 1990-1991 cars look something like their LS big brothers, but their Camry origins are quite obvious from most angles. Later ESs got more distinctive body panels and sales got stronger when that happened. Power came from this 2.5-liter V6, which was the hairiest engine available in the 1991 US-market Camry. 159 horsepower, which was pretty good for a car like this in the early 1990s. A five-speed manual transmission could be had in the ES 250 and ES 300 through the 1993 model year, but those early-1990s American car shoppers wishing for a midsize luxury sedan with three pedals generally opted for an Audi or BMW, with most of the rest settling on the Acura Legend. I'll keep looking out for a five-speed ES in a car graveyard, of course, but finding any first-gen ES has been a tough challenge in itself. This one got within 252 miles of the 200,000 mark, not bad for a typical 1991 car but also not especially impressive for a member of the Camry family. The interior was much nicer than what you got in any Camry, but junkyard shoppers have hit this one hard and its opulence no longer shines through. Toyotas had some variation of this switch from the late 1970s and into our current century. This version comes straight out of the Cressida. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. That Lexus noise-testing room sure is impressive! This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Good in the rain, too. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.