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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's Daihatsu unit halts all vehicle shipments over widespread safety cheating

TOKYO — Toyota Motor Corp. said Wednesday its subsidiary Daihatsu will suspend shipments of all its vehicles in and outside Japan in a damaging safety scandal after an investigation found improper testing involving 64 models. The safety test irregularities earlier this year prompted an independent panel investigation, which found widespread and systematic problems. Toyota, citing results of the panel, said its probe found 174 new cases of irregularities in safety test and other procedures in 25 test categories, in addition to the problems reported earlier. “We are sorry to have betrayed the trust of our customers,” Daihatsu President Soichiro Okudaira told a news conference Wednesday. He acknowledged the cheating on safety testing and procedures is tantamount to neglect of safety certificates. “We take it very seriously as the problem that has shaken the foundation of an automaker,” he said. A lawyer and a member of the probe team, Makoto Kaiami, who also attended the news conference, said workers under pressure to meet management demands for tight development deadline resorted to cheating, and that the management should take the blame. The issue first emerged in April when Daihatsu reported improper testing on the door lining. Problems in the side collision testing also surfaced in May, officials said. The problems were found in 64 models and three engines of vehicles, including 22 models and an engine sold by Toyota, the company said in a statement. The investigation also found that the problems involved some models for Mazda Motor Corp. and Subaru Corp. sold at home, as well Toyota and Daihatsu models sold abroad. Daihatsu is Toyota's unit specializing in small cars and trucks that are popular in Japan. Toyota expressed “sincere apologies.” "We believe in order to prevent recurrence, in addition to a review of certification operations, a fundamental reform is needed to revitalize Daihatsu as a company,” Toyota said. Toyota said it will take a significant effort, including a review of management and business operations as well as the organization and its structure, as well as mindset of employees and that the company will provide full support to revitalize Daihatsu. Daihatsu Safety crash test

Daihatsu reveals Miata-fighting roadster and more for Tokyo Mobility Show

Daihatsu left the U.S. market way back in 1992, but the brand is still going strong in Japan. The company is wholly owned by Toyota now and specializes in building kei cars and trucks, a special class of lightweight compact city cars. These days most kei vehicles are sensible rectangles to maximize passenger or cargo space inside the strict footprint allowed allowed by the class, but Daihatsu proves some fun can still be had.  And few of the concepts say that more than the Daihatsu Vision Copen (pictured at top). Design-wise it's a modern interpretation of the original Copen roadster introduced in 2002, with almost identical overall shape and round head and taillights. However, the original was more of an open top cruiser with practical front-wheel-drive layout. The Vision Copen, on the other hand, is rear-wheel-drive, showing muscular flared wheel arches that the original never did. It's powered by a 1.3-liter engine running on carbon-neutral fuel (whatever that means), a displacement that exceeds kei car regulations. So does the Vision Copen's footprint, which measures 150 inches long and 67 inches wide, almost the size of the Mazda Miata. It would be amazing if Daihatsu actually produced this car, even though it wouldn't be legal to import until 2049 or so, because the world definitely needs more rear-drive sports cars.  Then comes the me:MO, described as a car that will stay with the owner through many stages of life. It looks to be comprised of modular body panels. It's a trick Daihatsu has actually put on a production car, the Copen roadster, with composite fenders and doors that can be swapped with those of different shape or color. The me:MO appears to be an electric vehicle that has modular components on the inside as well, but the company has not released full details just yet.  The Daihatsu Uniform is the distilled essence of the kei car. Boxy and utilitarian but still exuding a bit of funkiness in the design, it was built to accommodate the working men and women of Japan. Vehicles like this usually serve as cargo haulers in dense urban areas where they can fit down extremely narrow alleys. The name derives from the fact that these workers are required to wear uniforms as they deliver everything from Amazon packages to food. The Uniform comes in two flavors, a cargo van and a truck.  The Daihatsu Osanpo is an open-top kei car built for leisurely cruising.