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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:

Honda Ridgeline to take two-year dirt nap before resurrection

Three years ago, Honda said there would be no new-generation Honda Ridgeline coming in 2011. In late 2011, when there was still no word on a replacement for the little truck that's been carrying on pretty much the same since 2006, within the space of a month both Honda's US truck planner and the CEO of American Honda said the Ridgeline would continue and that it was an integral part of the lineup.
But that doesn't mean it can't take a two-year timeout. A report in Ward's Auto says that the Lincoln, AL plant that builds the Ridgeline will cease its production in September, 2014 and a new one won't arrive until 2016. That's a walk-back from when the plan was to have the current truck run until a week before the next-generation truck went into production. Even so, Honda still says the Ridgeline isn't going away forever, a company spokesman telling Ward's, "Ridgeline continues to be an important part of our lineup."
2016 is a long way away, though, and we all know how quickly a product line put into a coma can end up suffering fatal consequences. Even though we keep talking about the Ridgeline, perhaps what Honda is actually saying is that the small pickup market is important to them, and they're working on a way to take better advantage of it than the Ridgeline was doing. We'll find out one way or the other in three years.

How to charge up your BMW i3 with a Honda

Behold a cheaper version of BMW's range extender for its i3 plug-in. And it's brought to you by ... Honda? Sort of, if you take the approach that Gadget Review took when it looked for an alternative to ponying up the $4,000 or so for the gas-powered i3 range extender that comes from the factory. What was procured was a Honda portable generator for Home Depot for the experiment, which involved gassing the generator up in a parking lot, plugging in the i3 and going out for a cup of coffee. The result was that, after about a half-hour of charging, the i3 picked up about four miles of driving range. Not exactly revolutionary but it least a bit instructive. And given that Honda generators start at about $800, the idea, while clunky, is potentially cash-saving. Gadget Review briefly took the experiment one-step further by trying to run the generator inside the back of the car and plugging in, complete with a rigged-up ventilation system, but the host thought better of it once he realized that there'd be suffocation involved. Why this was never tried on the Nissan Leaf, we'll never know. Check out Gadget Review's five-minute video below.