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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:

Suzuki ending auto sales in Canada, too

Suzuki of Japan has reportedly made the decision that almost everyone assumed it would make when it announced it was leaving the US market: when the 2014 model year concludes, it will no longer sell cars in Canada. With six employees overseeing its auto business in Canada and a dealer network that has shrunk to 55 outlets in the country, we can't say we're shocked.
At the time of the US announcement, however, the senior VP of sales and marketing in the automotive division of Suzuki Canada said it would be able to survive on its own because, among other reasons, Canadians prefer smaller, more fuel-efficient cars that fit the company's offerings. Five months later, after some time to think about a 30-percent drop in sales to open up 2013 instead of the 1.4-percent increase in sales that Suzuki Canada posted last year, things have evidently changed.
The Globe and Mail reports that as is in the US, Suzuki's motorcycle, ATV and marine divisions in Canada will remain.

Junkyard Gem: 2008 Suzuki Reno

Next time you're hosting a car-trivia night at your local junkyard/bar (hey, such places exist), you might try to stump your guests with a really tough one: What was the last US-market car to be designed entirely by Daewoo prior to the GM takeover? Sure, Americans could buy the Daewoo-badged Lanos, Nubira, and Leganza for a few years in the early 2000s, and the Verona was really just a slightly updated Leganza with Suzuki badges pasted on. The Chevy Aveo/Pontiac G3 was the descendant of the Lanos, but that special Daewoo sauce had been diluted by other GM flavors by the time it hit our shores. I say the answer is the Daewoo Lacetti — yes, that Lacetti — which was sold in the United States as the Suzuki Forenza (in sedan form) and Suzuki Reno (as a hatchback). Here's an example of one of the very last Renos you could buy here, found in a car graveyard near Denver, Colorado. The South Korea-built Reno never made much of an impression on the reviewers at this — or, I'm pretty sure, any — publication, despite having been styled by Giugiaro, though it was very reasonably priced during its 2005-2008 American sales run. My only experience driving the Reno comes from the time I rented one in South Carolina for just $9.98 a day. For that price, I thought it was a perfectly serviceable transportation appliance. Suzuki had been building cars for GM since the first Cultus hit American showrooms as the 1985 Chevrolet Sprint, and ties between the two companies became stronger as the 20th century became the 21st. They joined forces to buy bankrupt Daewoo in 2004, with American Suzuki selling the hastily-rebadged Nubira starting the next year. After a bit of excitement over the promising Suzuki Kizashi, American Suzuki filed for bankruptcy in 2012 and ceased selling cars here the following year. Don't feel too bad for Suzuki, though — in Japan, the company has had years of smash sales success with the Hustler, and of course Suzuki motorcycles and ATVs remain popular here. How much was this little Daewoo when new? With the base five-speed manual transmission, the MSRP on the base '08 Reno was $13,839, or about $19,425 in 2022 dollars. However, this car has the automatic transmission, an $1,100 option ($1,545 now).  You did get air conditioning and an AM/FM stereo in the base '08 Reno. This car has the optional CD player with AUX input. Honda had VTEC and Daewoo had D-TEC.