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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:

Daihatsu's Tokyo Auto Salon cars are absolutely adorable

There are some pretty weird and wonderful cars coming to the Tokyo Auto Salon in January, from Honda's vintage-style S660 coupe to the off-road Mitsubishi Delica D:5. But as cool as they are, none can approach Daihatsu for sheer cuteness. The company is showing off special versions of its tiny Kei class cars at the custom car show. We've got photos of most of them, but we're going to highlight the best of the bunch, below. We'll start with the Daihatsu Copen coupe (the little green guy up there). The Copen is the Japanese car company's micro-sized roadster, similar in scale to the Honda S660, except it's front-wheel drive. It also has a trick retractable hard top. The Copen coupe loses the retractable top in favor of a rakish permanent hard top. It's based on a concept from 2016 that clearly was popular enough to merit a production model. The styling also comes from the Copen Cero, which has friendly round lights and soft corners, a significant contrast to the edgy, aggressive Copen Robe and XPlay. The coupe model starts a little over $20,000 at current conversion rates and is available with either a CVT or a five-speed manual coupled to a turbocharged 660-cc three-cylinder engine. Daihatsu is also showing more practical cars including some custom versions of the Mira Tocot. The two that grabbed our attention are the Tocot Sporza and the Tocot Active. The former is an angry red hot hatch with a unique red and black paint scheme. Along the side are giant letters spelling out the Tocot Sporza name. This look has a lot of history at Daihatsu, having been featured on the Mira TR-XX, as well as the Charade De Tomaso. And, yes, we mean that De Tomaso. The Tocot Active, on the other hand, has a simple, retro aesthetic with its cheerful blue paint, plain black door handles, and ultra classy cream steel wheels. Then we have a special edition of what we've previous proclaimed to be the most adorable car in the world: the Move Canbus. It looks like it's just happy to be alive, and looks all the better with the blue and white two-tone paint job that would be right at home on a VW Bus. But the German van isn't where the color scheme comes from. Instead, it's inspired by Hatsune Miku, a virtual character from a Japanese singing synthesizer that is enormously popular in Japan. The blue and white mirror her hair and outfits, and small pops of fuchsia match her hair bows. We also have to quickly note the Daihatsu Hijet Marche.

Takata airbag recalls add another 5 million vehicles

The Takata airbag inflator recall expanded by about 6.5 million vehicles recently when Toyota and Nissan announced global expansions to replace the faulty parts. You can add another 5 million more as Honda and Daihatsu also broaden their replacement campaigns. Although in this latest case, none of the affected models are in the United States or Canada. Honda is recalling 4.89 million more vehicles globally, and Daihatsu has about 260,000 to repair in Japan, according to Automotive News. With these latest expansions, all of the affected automakers have needed to fix about 36 million vehicles globally for these faulty airbags since 2008. Some of the first instances of these problems were found in an Isuzu campaign in 2001. This latest round of recalls was sparked by a study from Takata that found the inflators' propellant could be affected by moisture over time. While the automakers received this information in March, it took time to determine the number of vehicles in need of repair and where they were located, according to Automotive News. To make sure all of the affected vehicles in the US are repaired in a timely fashion, the National Highway Traffic Safety Administration is reportedly considering a strategy to force things to speed up. Honda and Toyota are already using outside suppliers for the parts they need. Related Video: News Source: Automotive News - sub. req.Image Credit: Shizuo Kambayashi / AP Photo Recalls Honda Daihatsu Safety Takata airbag recall