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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:

Mazda revamping dealers with 'Retail Evolution'

Mazda introduced its Retail Revolution dealership design language 12 years ago, which focused on open-plan spaces, multimedia areas, and allowing customers to interact with the brand before needing to interact with a salesperson. Two years ago the carmaker started work on the next step in its dealership design, and the new language, called Retail Evolution, was unveiled at Mazda of Everett in Seattle, Washington. Aiming to make the Mazda brand feel more premium and increase dealer profits, it goes even further on the open-plan to create "a new level of business transparency." It's all done with a lot of black, white, raw wood, metal finishes, and a lot of glass. Mazda Lounges will offer free wi-fi, and digital displays will replace static photographs. So as not to hurt showrooms still recouping their investment in Retail Revolution, Mazda will work with dealers to figure out how best to update facilities, and the Retail Evolution has three tiers that can be adapted to particular locations. The press release is below, a couple of renderings are above. MAZDA ANNOUNCES ALL-NEW RETAIL EVOLUTION DEALERSHIP DESIGN Mazda of Everett Showcases First Ground-Up Retail Evolution Design IRVINE, Calif. (August 27, 2015) – Mazda North American Operations (MNAO) today announced its all-new dealership design, dubbed "Retail Evolution", featuring an open concept floorplan that offers a new level of business transparency, and a look and feel enhanced through the use of natural materials that results in an even more upscale decor than the company's current popular Retail Revolution design. The first Retail Evolution dealership built from the ground up to this exacting standard will be Mazda of Everett in Seattle, Wash., opening today. "Thanks to our KODO design philosophy and suite of SKYACTIV technologies, our vehicle lineup has never been stronger. We are now able to take that groundbreaking design language and translate it into our dealership experience," said Jim O'Sullivan, president & CEO, MNAO. "Retail Evolution embodies the spirit and direction of the Mazda brand, while offering an upscale experience our customers expect and deserve." Clad in premium black, clean white, and featuring new chrome Mazda signage, the new Retail Evolution Mazda dealerships will provide dealers with strong curb appeal. New materials throughout the building give dealers an upscale look and feel with warm raw-material tones of wood and metal in the showroom.

Takashi Yamanouchi to retire as Mazda chairman

Takashi Yamanouchi has been with Mazda for a long time. He signed on with the Japanese automaker in April 1967 - one month after graduating from Keio University - and rose through the ranks over the years. By 1996 he was named to the company's board of directors. In 2008 he was named president and CEO, an office he held until 2013, after which he handed over the day-to-day reins to Masamichi Kogai and took up the seat at the head of the board room to serve as the company's chairman. But now, after 47 years working for Mazda, Yamanouchi-san is retiring at the age of 69.
During his tenure as CEO and then as chairman, Yamanouchi was credited with growing Mazda's business despite unfavorable fluctuations in exchange rates, opening the company's first plant in Mexico, and spearheading the development of Mazda's Skyactiv technologies and Kodo design language.
In his place, current vice chairman Seita Kanai will take over as chairman. The changing of the guard will take place after the annual shareholders' meeting on June 24.