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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:

The 2017 Mazda CX-5 is new, and oh so very red

After examining the teaser photo and poring over spy photos, we knew that the 2017 Mazda CX-5 would adopt some design features from the larger CX-9 and Chinese-only CX-4. What we didn't know, though, is that the CX-5 would look like a miniature version of the CX-9. From the outside it's obvious the design is all new. The front of the SUV looks nearly identical to that of the CX-9's. Gone is the cutesy, roundish face in favor of a more angular theme. The headlights are slimmer, while the grille ditches the horizontal bars for a mesh pattern. Mazda calls the design theme Kodo - soul of motion, and the original 2013 CX-5 was the first production model under this mantra. View 12 Photos The changes at the back are less drastic than on the CX-5's new beak. The black trim that underlines the rear fascia is less prominent and the taillights looks leaner, but it's harder to tell the differences between the old and new model. Mazda says the CX-5 will be available with two engines here: the Skyactiv 2.5-liter gasoline engine and the Skyactiv-D 2.2-liter diesel (the Skyactive-D 2.0-liter, currently only used on Sport models, has been dropped for our market). We don't have specifics on power and torque yet, but in the old CX-5 (and current Mazda 3) the 2.5-liter four-cylinder generates 184 horsepower, while the diesel makes 173 hp and 310 pound-feet of torque. We expect front- and all-wheel-drive options, and of course we're hoping that the six-speed manual (previously on the base, front-drive model only) stays around as an alternative to the six-speed automatic. The interior follows the template of recent Mazdas, with the infotainment screen sitting on top of the dashboard with a control knob located aft of the shift lever. We'll have more information on the 2017 CX-5 at the vehicle's debut later today at the 2016 Los Angeles Auto Show. Related Video:

Mazda considering a 'hyper' Mazda3 with the 250-hp 2.5-liter turbo four

Mazda boss Akira Marumoto said last year there'd be no Mazdaspeed version of the new Mazda3 because the hot hatch segment wasn't a priority for the carmaker. Then Mazda engineer Dave Coleman told Road & Track that without "an engine on the shelf that would fit properly," an MPS variant made no sense. The first reader comment on our Coleman post read, "Engine — you have it; cue up the 2.5T." Mazda might have been listening. Program manager Kota Beppu told Autocar he'd like a "hyper" Mazda3, the outlet figuring the 2.5-liter four-cylinder turbo would make the most sense for power. Autocar wrote "the project had not been officially signed off, [but] insiders suggest that is a formality." When Car and Driver queried Mazda and its sources about the report, the magazine realized "the company is seriously considering a high-performance hot hatch." What's more, "Drew Cary, senior manager for brand communications, said, 'We encourage people to ask for it, though. Our planners and executives are watching and listening to fans.'" The turbocharged 2.5-liter SkyActiv-G four-cylinder — which doesn't sell in Europe — makes 250 hp on premium gasoline and 310 pound-feet of torque in the Mazda6, CX-5 and CX-9. A next-generation SkyActiv-G is predicted on the way next year, bringing more boost and power. Even as is, we're talking a chunky lump of power to send to the front wheels, and Beppu mentioned torque steer. The new Mazda3's all-wheel drive would alleviate that bugbear. Unlike the raw, fast-twitch reflexes of the last Mazdaspeed3 from 2013, Beppu says a new model "needs to be responsible and friendly ... more friendly than a Golf GTI." And, "It should be fast." The polished looks and interior address the necessary perceptions. CD's done the math on the current 2.5-liter and predicts a five-second sprint to 60 miles per hour, which is Volkswagen Golf R and Honda Civic Type R territory, so GTI comparisons could be a case of aiming low. Imagine a 300-hp engine with a touch more torque and a six-speed manual ... If Mazda follows through with such a product, it could take two years to get the green light. However, we're told that Mazda's Los Angeles research and development center has already built a proof-of-concept to encourage and anticipate that green light.