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Suzuki planning an electric Jimny among EV, hybrid onslaught

Suzuki introduced the larger, five-door Jimny earlier this month, and an investor presentation detailing the automaker's growth strategy to 2030 shows there's more in store. The automaker's mission is to expand its lineup with vehicles that move toward the "realization of a carbon neutral society." This entails Europe, India and Japan receiving five or six new hybrid and/or battery-electric models each. In Europe, the first of Suzuki's five BEVs will show in financial year 2024; when the rollout is complete, it will include an electric Jimny — the silhouette in the upper right. According to Australian outlet Drive, starting from the upper left, the others are a small people-mover, an electric version of the Fronx crossover Suzuki debuted at Auto Expo in India earlier this month, an unknown hatchback, and the retail version of the EVX concept. An electric Jimny would get the dinky 4x4 back to Europe without any classification trickery. The Japanese brand ended export of the regular four-seat model to Europe in 2020 when it could no longer pass EU emissions. It now sends the same model as a two-seat commercial vehicle. Suzuki sells as many as seven models in European markets not including the Jimny, six of them mild hybrids, one a plug-in hybrid. There have been rumors of a hybrid Jimny for a couple of years, and it's predicted the new five-door will get a hybrid option shortly. The investor presentation deck predicted an eventual powertrain ratio in Europe of 80% battery-electric vehicles, 20% hybrid vehicles. We expect that would mean a near overhaul of the European ranges with current models dropping out in favor of hybrids with electric options. What's unexpected is that the battery-electric Jimny silhouette doesn't show on the slides for the Indian or Japanese markets. In Japan, Suzuki expects sales to end up 80% hybrid, 20% EV, the opposite of Europe. The Indian outpost, known as Maruti Suzuki, is the automaker's largest market, and one local outlet said 1,000 shoppers have paid to reserve a spot for the five-door Jimny every day since the truck's debut. The expected powertrain breakdown there is much more varied than the other two regions at 15% battery-electric vehicles, 25% hybrid, and a 60% share of internal combustion made up of a mix of compressed natural gas, biogas, ethanol and "etc." This would definitely be a market for the hybrid Jimny whenever it shows.

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:

New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.