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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's first production jet takes off from North Carolina

Plenty of automakers have backgrounds in aircraft manufacturing. BMW, Bristol, Mitsubishi, Saab and Spyker all started out in the airplane business. But Honda is going the opposite direction, expanding its automotive (not to mention motorcycle, ATV, marine engine and power equipment) business with the launch of the HondaJet. And that project has just taken a big step forward.
After starting production a year and a half ago, the Japanese industrial giant recently completed its first customer HondaJet, and has now taken that initial production aircraft to the skies for its landmark first flight. The aircraft left the production facility in Greensboro and took off on Friday morning from Piedmont Triad International Airport in North Carolina - the same state where the Wright Brothers undertook their first flight over a century ago.
The HondaJet undertook an 84-minute test flight, climbing to 15,500 feet and reaching a speed of 348 knots. That works out to 400 miles per hour - assuredly faster than any Honda (save for maybe a prototype for the same aircraft) has traveled before. The aircraft is designed to cruise at a maximum of 420 knots (483 mph) and reach a maximum altitude of 43,000 feet.

Struggling McLaren-Honda F1 partners near 'fork in the road'

WOKING, England - McLaren's partnership with Honda has not worked so far, and the team is now approaching a "fork in the road," executive director Zak Brown said on Wednesday. Speaking to Reuters in his office at the Formula One team's headquarters, Brown (pictured above) indicated clearly that a parting of the ways was a real option under consideration by management. The American said engine upgrades promised for this weekend's Canadian Grand Prix were not ready, and the Japanese manufacturer could not say when they might be. And while McLaren still wanted to win championships with Honda, there were serious concerns as to whether that was achievable. "Honda's working very hard, but they seem a bit lost," said Brown, who replaced Ron Dennis at the helm late last year. "We were only told recently that we wouldn't have the upgrade coming (for Montreal) ... and we don't have a definitive timeline, which is concerning because the pain is great and we can't sit around forever. "We were eagerly awaiting this upgrade as were our drivers, and it's a big disappointment that it's not coming. It's not lack of effort, but they are struggling to get it to come together."FAILURE AND EMBARRASSMENT McLaren, the second oldest and most successful team in Formula One after Ferrari in terms of race wins, are the only ones yet to score a point this season. They have not won a race since 2012. The renewed partnership with Honda in 2015 was billed as a return to the glory days, when French great Alain Prost and the late Brazilian Ayrton Senna dominated the late 1980s and early 1990s. Instead it has brought failure and embarrassment to the former world champions, whose cars have failed to finish races -- and sometimes even start them -- due to engine failures. Spanish driver Fernando Alonso, a double world champion whose future is uncertain, said in March that "we have only one problem, and that is the power unit. There is no reliability and there is no power." Honda's engine troubles even plagued Alonso at the Indy 500, where a failure took him out of the race. McLaren were ninth in 2015, sixth last year and this season could become their worst ever. MARCHING ORDERS "The executive committee have now given us our marching orders," said Brown, who is also chairman of the fast-growing Motorsport Network media group. "We're not going to go into another year like this, in hope." "I don't want to get into what our options are.