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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 Mazda2 gets EPA-rated 43 mpg highway

To paraphrase the famous quote from astronaut Neil Armstrong, that's one small step for man and one giant leap for the Mazda2. The Environmental Protection Agency (EPA) has weighed in on the new Mazda2 version, and says it gets a fuel-economy rating of 33 miles per gallon city and 43 mpg highway with a six-speed automatic transmission. Stick-shift gas-mileage figures are 31 city and 42 highway, which are still substantially better than the 29/35 rating from the most recent iteration of the model. That's about a 15-percent jump in fuel economy, people. More importantly, the Mazda2 beats out competitors such as the Hyundai Accent, Kia Rio Eco and even the Honda Fit in terms of fuel efficiency, which is pretty good company. The Mazda2 boasts a 1.5-liter four-cylinder engine. But it is the upgrade to six-speed transmissions in both manual and automatic versions that seem to be making the biggest difference in the ratings. Mazda started unveiling details about the next-generation Mazda2 last year, and last fall began production of the model at Mazda's new factory in Salamanca, Mexico. At that time, the Japanese automaker had already sold more than 2.4 million Mazda2 vehicles since the model's introduction in 1996. Related Video:

Petrolicious lets a 1971 Mazda RX-2 howl

Rotary engines scream to the heavens in the best way possible. To hear a wonderful example of the Wankel's battle cry, turn up your speakers and watch Petrolicious highlight an immaculately clean 1971 Mazda RX-2 in Australia. Owner Jason Humble took three years to build his RX-2 from a bare shell, and he started competing with it in vintage racing in 2005. The little coupe's class pits it on track against Mustangs and Camaros, but Humble claims that he's regularly near the top of the pack thanks to the Mazda's communicative chassis. We don't get to see the RX-2 mixing things up on track in the Petrolicious video, but Humble does treat us to a drive through the Australian countryside. He's happy to let the coupe's rotary rev, and the little engine is capable of making a wonderful noise. It's great to see Petrolicious continue to give the spotlight to these sometimes overlooked classic Japanese sports cars.