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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:

Mazda6 diesel engine delayed over low performance, still coming

Oh Mazda... we had many hopes for the promised diesel four-cylinder in the Mazda6, but those have remained largely unfulfilled, as the oil-burning powerplant has failed to appear on dealer lots following its 2012 LA Auto Show announcement. Despite engineering issues that forced the company to announce that the program was delayed back in September 2013, Mazda remains adamant that the 2.2-liter Skyactiv-D is still coming to our shores. "We're still very much committed to diesel," Mazda's North American CEO, Jim O'Sullivan, told Automotive News. "We are still working on getting the performance aspects up to where we want them, and we do have a plan – an engineering road map – to get it done." According to AN, Mazda's initial plan with the 2.2-liter diesel was to build an engine so clean it could get by without an aftertreatment system, which generally accounts for the price premium of diesel engines versus their gas counterparts. The new system has come with performance issues, though, necessitating the delays. "If [we were] a commodity brand and didn't care about that, it would be on the market right now," O'Sullivan told AN. "But I know the people were expecting something from us, expecting certain drive characteristics and performance, and I didn't want to disappoint them." While O'Sullivan's defense of the diesel Mazda is admirable, the exec stops short of giving us an indication of when the new engine will finally arrive.

Mazda3 to showcase CNG, Hybrid versions in Tokyo

Mazda has made huge gains in its competitive set with the introduction of its Skyactiv technologies, and the Japanese automaker appears to have no plans on slowing down. While we're still waiting for the Mazda6 Skyactiv-D diesel to go on sale in the US, Mazda announced that it will debut new Skyactiv-Hybrid and Skyactiv-CNG versions of the Mazda3 (standard US-spec model shown above) at next month's Tokyo Motor Show.
Matching up with what we heard earlier in the summer, the Mazda3 Skyactiv-Hybrid is intended for Japan only, but there are no details about this system regarding fuel economy, electric components or specs. Likewise, there are no details for the Mazda3 Skyactiv-CNG Concept, which is a bi-fuel version of the car running on both gasoline and compressed natural gas. As this car's name suggests, the CNG model is a concept vehicle, and there is no indication that Mazda plans offering such a model here in the US.
In addition to these two vehicles, Mazda will also have an Atenza (Mazda6) on display showing off some vehicle-to-vehicle (V2V) safety systems, called the ASV-5 (Advanced Safety Vehicle). Scroll down for Mazda's official press release.