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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:

Marchionne now considering 'Plan B' partners for FCA merger

Okay Sergio, just stop. With the sting of rejection from General Motors CEO Mary Barra still fresh, Fiat Chrysler Automobiles CEO Sergio Marchionne is moving on and trying to find another automaker to merge with. FCA may not be giving up hope on a merger with GM, but that doesn't mean it isn't at least considering alternatives. Sergio's so-called "Plan Bs" include the Volkswagen Group, as well as smaller Asian outfits, like Mazda, Honda, Suzuki, and Hyundai. Bloomberg reports that France's beleaguered PSA Peugeot Citroen could as a sort of "fallback" option due to its relative lack of volume, an unidentified source claimed. There are, of course, problems with each option. According to Bloomberg, Volkswagen expects complete control of a company, but the Agnelli family, which holds a large portion of FCA stock, is loathe to relinquish its stake in the company. On top of that, VAG just isn't looking to make a deal right now. Mazda, meanwhile, is enjoying a new partnership with Toyota and Suzuki is partially owned by VW. Honda and Hyundai have never expressed any interest in a partnership with a western automaker. That kind of just leaves the French then, but even that remains a long shot. As Bloomberg tells it, PSA boss Carlos Tavares is still working on a turn-around plan, and would want at least another six months to execute before even considering a deal with FCA. And even then, Tavares hasn't given any indication that he's considering a pairing. News Source: BloombergImage Credit: Paul Sancya / AP Chrysler Fiat GM Honda Hyundai Mazda Suzuki Citroen Peugeot Sergio Marchionne FCA Mary Barra psa peugeot citroen

2016 Mazda MX-5 Miata First Drive [w/video]

Hypothetically speaking, if you blindfolded me, put me in the car pictured above, and told me to hit the road, it would have taken me maybe two minutes to figure out that I was driving the 2016 Mazda MX-5 Miata. There are just certain facets about Miata driving that have been baked into every generation of Mazda's roadster, and it makes for a symbiotic relationship between car and driver that's truly unique. Sure, I could rattle off a list of cars that come close to offering the same sort of experience, but they just can't quite capture the same intrinsic Miata magic. Mazda knows its Miata is an incredibly special machine. Listening to the company's engineers and designers talk about the development of this fourth-generation ND model is fascinating. The attention to detail is astonishing, and every single person involved in the Miata program knows that the most important goal is to keep this car as true to its predecessors' ethos as possible. It cannot just be a great convertible, or even a great Mazda – it has to be a great MX-5 Miata. But the company did not just want to improve upon the third-generation NC Miata, which has been around since 2006. They wanted to tie the ND Miata's roots back to the original NA from 1989. Back in '89, the Miata was a less-powerful, 1.6-liter model with 115 horsepower and 100 pound-feet of torque. Mazda's team said they are proud of every version of the MX-5, but it's this specific, first-generation model that the company calls the "most right" – the most true to the idea of what a Miata ought to be. So that's why, before being allowed to attack the winding roads of the Spanish countryside in the 2016 MX-5, Mazda wanted me to spend some time with a cherry example of the original NA Miata: a Mariner Blue darling that, even with some 239,000 kilometers on its clock, still felt absolutely impeccable from behind the wheel. Light, responsive, and perfectly balanced, it was the original embodiment of the harmony between driver and car that Mazda wanted in every Miata. Mazda executives said they felt the first Miata was also the right size. So they chopped off three inches on the ND compared with the NC, and put it on a wheelbase that's been reduced by six-tenths of an inch. In fact, these dimensions mean the new Miata is more than two inches shorter in length than the original, and only two-tenths of an inch taller. In this day and age of ever-expanding waistlines and footprints, it's a remarkable achievement.