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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:

2016 Mazda CX-5 [w/video]

It's difficult for me to get excited about crossovers. I try hard not to be the stereotypical car guy: ignoring the fact that the rest of the world loves these tall hatchbacks, while yelling, "station wagons make more sense!" until I've voided my lungs of air. Deep down I am that guy, but I work around it. Historically the Mazda CX-5 is one crossover that has been quasi-immune to my knee-jerking. It doesn't weigh two tons, offers a manual transmission (in poverty spec, but still...), and looks faster than its competitors. Most importantly, the CX-5 can round a corner without wobbling like a Slinky at the top of the stairs. No item on that list of plaudits would likely crack the top ten "desirables" for average small CUV shoppers. So, for the 2016 update, Mazda instead upgraded the in-cabin experience along with the requisite nips and tucks to the exterior. I borrowed a 2016 model CX-5 to see whether or not those concessions to comfort affected the car-nerd stuff. And to see if the Mazda could still be my go-to CUV recommendation. Driving Notes The engine options are unchanged for 2016. You can still have the fine, 2.5-liter four-cylinder engine, with its 184 horsepower and 185 pound-feet of torque, or its wimpier 2.0-liter lil' brother. My fully spec'd Grand Touring came with the bigger engine, which feels adequately powerful for the class, but not quick. In an era where turbocharged engines are everywhere, revving the Skyactiv 2.5-liter up to its torque peak at 3,250 rpm takes some commitment. I'm annoyed that there's no manual offered with the 2.5L (a combo I can have in both the Mazda3 and Mazda6), but I don't hate the automatic transmission. The six-speed unit is unobtrusive 99 percent of the time; something I regretfully can't tell you about certain nine-speed autos. There are no paddles to play with, but you can tap the shift lever up and down if you're struck by a need for total control. With a new center console and dash, and the addition of the Mazda Connect infotainment system, the '16 CX-5 feels like a new vehicle from behind the wheel. An attractive, pliant, leatherish material swaths the neat console and surrounding real estate. And the perforated leather seats feel damn near upscale. I think that Mazda Connect's version of the central control knob (with handy adjacent volume knob) is almost luddite-proof in its simplicity. There's no latency between twisting and reaction on the screen.

2014 Mazda3 officially rated at 30/41 mpg, priced from $16,945*

It's hard not to be smitten with the 2014 Mazda3; after all, just look at it. But beyond its slick lines, we found the new compact hatch to be a pretty remarkable steer, offering up good levels of comfort and refinement, not to mention functionality and engagement. Now, there's more reason to like the 2014 Mazda3, as we've just learned that the car will officially be rated at 30 miles per gallon city and 41 mpg highway.
That 30/41 rating is for the Mazda3 sedan fitted with the 2.0-liter Skyactiv-G inline four-cylinder engine and a six-speed automatic transmission. Opting for the manual transmission retains the 41-mpg highway number, but drops the city digits to 29. Hatchback models with the 2.0-liter engine achieve 29/40 mpg with the manual 'box and 30/40 with the automatic.
Mazda also offers a larger 2.5-liter inline-four in the 3, and while a six-speed automatic will be the only transmission available with this engine at launch, the automaker has confirmed that a manual is coming shortly. With the 6AT and 2.5, the Mazda3 sedan is rated at 28/39 mpg, or 29/40 with the company's i-Eloop regenerative braking system. Hatchback models shrink those numbers to 28/37 and 29/39 mpg, with and without i-Eloop, respectively.