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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:

Autoblog Podcast #317

Mitsubishi Mirage, Toyota thinks of beefing up US production, Marchionne on Alfa, Dart and minivans, Ford Atlas concept, Honda Gear concept
Episode #317 of the Autoblog Podcast is here, and this week, Dan Roth, Jeff Ross and Michael Harley bookend the other podcast topics with a pair from the Montreal Auto Show, the Mitsubishi Mirage and Honda Gear concept, and in between we talk about Toyota building all its US-market cars stateside, Hyundai building a Nurburgring test facility, Sergio Marchionne's latest words about Alfa Romeo, Dodge Dart powertrains and the future of Chrysler vans. Some chatter about the Ford Atlas concept finishes up the meat of the 'cast and then we wrap with your questions. For those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #317:

Is the Acura Legend coming back?

Great news for fans of the Acura Legend: Honda has applied for a trademark in Europe for the word "Legend," pertaining to "Vehicles; Apparatus for locomotion by land; Apparatus for locomotion by air; Apparatus for locomotion by water; Parts and fittings for land vehicles; Parts and fittings for air and space vehicles; Parts and fittings for water vehicles." This trademark was first spotted by AutoGuide.com, and gives more credence to our speculation from a couple months ago about the possibility of the Legend nameplate returning to the Acura lineup in the States. If you were reading closely before, you'll notice that it was actually Honda that applied for the trademark, not Acura. The Legend was sold with a Honda badge on it in Europe back in the day, so this trademark filing in Europe makes perfect sense. In our previous report, we put forth the idea that Acura could bring the Legend name back with a successor to the RLX flagship sedan. Specifically, we were thinking that Acura would use the four-door coupe form previewed by the Acura Precision concept. That story also suggested a new Legend flagship could debut during Monterey Car Week. The 1986 Legend sedan was one of Acura's first two vehicles when the brand launched (the other being the Integra). It had a smooth 2.5-liter V6 that made all of 151 horsepower at the time. A sweet-looking coupe soon followed the sedan. The name Legend would be applied to a second-generation, which is arguably the one best-remembered. The coupe in particular has lived up to its name. Much of that legendary status, though, is the result of what followed: the Legend name and coupe body style dying for 1996 in favor of the RL, a four-door sedan as bland as its name. Acura's flagship has never recovered. We'll be quite pleased if Acura ultimately decides to reveal a totally new Legend to blow us away in Monterey. The return to actual names for the lineup would also be lovely. It's certainly working for Lincoln. Now if they'd only trademark "Integra" ...