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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:

Junkyard Gem: 1989 Mazda MX-6 GT Turbo

The Mazda MX-6 is best-known in the United States as the sibling (or maybe first cousin) of the Ford Probe, which almost became the successor to the Fox Mustang. The MX-6 and Probe were well-engineered and very quick for the era, but never enjoyed great American-market sales success. Here's a rare first-generation MX-6 GT that I photographed last week in a Denver self-service yard. 145 turbocharged horsepower was pretty good for 1989, when a new Honda Prelude Si had 135 horses and the far more expensive BMW 325i ($24,650 for the 325i coupe versus $14,499 for the MX-6 GT Turbo) had 168. This one doesn't have the optional four-wheel steering, but it does have the three-way adjustable suspension. If you drove a turbocharged car in 1989, you needed a nine-band equalizer with analog sliders on the radio. It was the law. It's not rusty, but at 205,575 miles it's worn out. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The Japanese-market version was known as the Capella C2, and it boasted some great TV commercials. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. "A better value in high-performance luxury sports coupes comes from our intense commitment to your total satisfaction." As always, the US-market TV ads are less interesting than their Japanese counterparts. Related Video: Featured Gallery Junked 1989 Mazda MX-6 GT Turbo View 21 Photos Image Credit: Murilee Martin / AOL Auto News Mazda Coupe Classics

Junkyard Gem: 1982 Mazda RX-7 GSL

The early Mazda RX-7 was one of the few bright spots for sports-car shoppers during the Malaise Era, a lightweight and simple rear-wheel-drive machine with a screaming Wankel engine under the hood. Even though it was designed mostly as a means of getting Japanese car buyers a loophole to keep their engine-displacement-based road taxes low, the early RX-7 sold well in North America. I still find these cars during my junkyard travels, but the 1981-1983 FB-series RX-7s have been getting scarce in recent years. Here's a very solid '82 that showed up in Denver during the winter. Japanese cars of this era tended to rust early and often, but this one appears to be absolutely corrosion-free. The odometer shows just a hair over 100,000 miles, so I'm guessing this car spent decades in covered storage. The seat leather shows a few rips, but the interior looks pretty good overall. The body has some dents and dings, nothing serious. It wouldn't have taken much to get this car back on the road and looking good. The GSL package got you four-wheel disc brakes, a limited-slip differential, and these cool-looking pillar badges.  The list price on a new 1982 Mazda RX-7 GSL came to $11,895, or about $32,350 in 2020 bucks. A new Datsun 280ZX coupe went for $14,499 that year, but was a much more powerful and prestigious car; the less opulent 200SX was just $7,739. If you wanted a new Celica Supra, the price tag was $14,598. The final year for the Fiat-badged 124 Spider (they were sold with Pininfarina badging for a few additional years) was 1982, and that car cost $12,290. Meanwhile, your Chevrolet dealer had new Z28 Camaros starting at $9,700 that year; the RX-7 would eat up the Camaro on a tight road course but would be blown away on the straights. The 12A rotary engine in this car made 100 horsepower from just 1.1 liters of displacement, putting smiles on the faces of those Japanese road-tax payers. Unfortunately, fuel consumption was scary, particularly in the immediate aftermath of the 1979 Oil Crisis. Why did this car end up in a place like this? It was found in an office parking lot with a flat tire and expired registration tags and towed away. Then it failed to attract any bidder interest at the subsequent auction and U-Pull-&-Pay picked it up for next to nothing. So, if you ever wanted an early RX-7, buy the next cheap one you find before it meets a fate similar to that of today's Junkyard Gem. This content is hosted by a third party.