2020 Honda Civic Ex Hatchback on 2040-cars

Auto blog

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 wins Commercial of the Decade, but not for the ad you think [w/VIDEO]

Honda's Commercial of the Decade: "Grrr" - Click above to watch video
The mad men at Adweek recently voted for the Commercial of the Decade (Super Bowl commercials not included) and Honda took top honors over memorable ads from the last ten years by companies like Nike, Budweiser and Sony. That's not a big surprise considering Honda often puts a huge amount of effort into its on-air spots. However, the Japanese automaker didn't win for the commercial you might have expected: "Cog." Though Honda's famous commercial that breaks down a European Accord Tourer into a Rube Goldberg-esque machine was also a finalist, it was beaten by another Honda commercial called "Grrr" that's narrated by Garrison Keillor of all people. You've probably never seen it, but you can after the jump.
Volkswagen also made the list of finalists, but the particular ad chosen out of all the comical VW ads we've seen was unexpected as well. Most surprising carmaker with a commercial in the finals: Saturn. Who knew...

Honda underreported 1,729 claims of injuries or deaths since 2003

Among these underreported cases were eight Takata airbag inflator ruptures not submitted. Following an independent audit of its safety reporting procedures, Honda has found massive holes in its methodology and practices that resulted in 1,729 claims of injuries or deaths going unreported to federal authorities dating back to July 2003. The cases should have been submitted to the National Highway Traffic Safety Administration as part of its quarterly Early Warning Reports (EWRs) under the TREAD Act, but they fell through the cracks for a variety of reasons. Honda blames the underreporting on three factors: data entry errors, computer coding problems and "an overly narrow interpretation of what constituted a 'written notice' under the TREAD Act." The first two issues were related to the computer program that collected the claims. If employees didn't enter a date in the "written claim received" field, then they were omitted from the EWRs. Also, the company's internal component codes didn't always match those used by NHTSA, and only the ones that were the same were disclosed. Finally, third-party documents, including police reports, were not considered. Honda says the computer error is now corrected, and the company is updating its data entry training. In the future, written and oral claims will be included in EWRs, as well. Among these underreported cases were eight Takata airbag inflator ruptures not submitted in Honda's EWRs, including one death and seven injuries. However, the automaker claims NHTSA was already aware of all of these incidents either from the agency's own records or from the company's notification outside of the EWR process. Unfortunately, this problem could have been stopped much sooner. The issue was first brought to light in 2011 but didn't result in a followup. NHTSA advised the automaker of discrepancies in January 2012, and it still did nothing. This third-party audit wasn't commissioned until September 2014. "Honda acknowledges that it lacked the urgency needed to correct its problems on a timely basis," it says in the announcement. Separately, the Japanese government is starting an investigation, as well. According to Reuters, the Japanese Transport Minister has created a task force to look into the Takata recalls and find out whether Honda under-reported incidents there. Scroll down to read the company's entire statement on the third-party investigation.