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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:

Recharge Wrap-up: Nissan Leaf top environmental performer, 50,000th Renault Zoe

Renault has produced its 50,000th Zoe electric car. A Frenchwoman named Sylvie took ownership of the milestone vehicle at the Flins plant where it rolled of the line. She says her children helped convince her to buy the all-electric vehicle, which Sylvie intends to use as a daily driver. The Renault Zoe is Europe's best selling EV since its launch in 2013. Renault reports a 98-percent satisfaction rate with the Zoe. Read more in the press release from Renault. Toyota will use a biosynthetic rubber called biohydrin in its engine and drive system hoses beginning in May 2016. Jointly developed by Toyota, biohydrin is a plant-based rubber with a 20-percent reduction in material lifecycle carbon emissions compared to petroleum-based rubber. Toyota plans to use the compound in even more components in the future, including brake and fuel line hoses. Read more from Toyota. So far in 2016, only 27.5 percent of hybrids and EVs are traded in for another electrified vehicle, according to Edmunds. That's down from 38.5 percent in 2015. 33.8 percent of electrified vehicles are traded in for SUVs. Despite the trend of EV and hybrid owners switching back to traditionally powered vehicles, average fuel economy isn't suffering. "This is an economics trend, since today's low cost of gas no longer makes it worth paying the price premium of hybrids and EVs," says Edmunds Director of Industry Analysis Jessica Caldwell. "And there are so many fuel-efficient vehicles on the market today that environmental concerns weigh less than they might have in years past. When you're buying a vehicle that can get over 30 mpg, you can still say you're doing your part to help the environment." Read more from Edmunds. Environmentally, electrified vehicles outperform their conventional combustion counterparts throughout their lifecycle. A study from the Automotive Science Group (ASG) finds that while production of advanced powertrains comes with a greater financial burden, most vehicles make up for it through efficiencies during their use phase. The ASG lists the 2016 Nissan Leaf as its best performer, with 47 percent fewer greenhouse gas emissions than the best-performing conventionally powered car, the Honda Fit. Rounding out the ASG's top five environmental performers are the Ford Focus Electric, Chevrolet Volt, Toyota Prius Two Eco, and Hyundai Sonata Plug-In Hybrid.

Weekly Recap: Toyota, Mazda team up to 'make cars better'

Toyota and Mazda are teaming for a noble purpose: to "make cars better." That's how the two Japanese automakers termed their partnership, which was announced this week. So what does this actually mean? The companies said they will set up a joint committee to look for areas of cooperation and named safety and the environment as issues they plan to tackle. From a product perspective, it's believed that Toyota is interested in Mazda's Skyactive engine portfolio. In turn, Mazda has its eye on Toyota's fuel-cell and plug-in hybrid technology. While more specifics were not confirmed, the companies said the "agreement will go beyond the traditional framework of cooperation," and it has the potential to be a long-range partnership. "The main purpose of this initiative is to enhance the appeal of our cars," Toyota president Akio Toyoda said at the announcement. Previously, Mazda has licensed Toyota's hybrid tech and assembled compact cars for Toyota in Mexico. Akio Toyoda said these projects "triggered" the automakers to explore further collaboration. Dave Sullivan, product analysis manager for AutoPacific, said the tie-up echoes Daimler's wide-ranging work with the Renault-Nissan alliance. "This could be a well-groomed match due to each having very unique skill sets," he said. OTHER NEWS & NOTES Volvo selects South Carolina for US factory Volvo confirmed this week that it will build its first US factory in South Carolina, with construction set to begin this fall. The company first revealed plans in March, though it didn't announce a site. The plant will have initial annual production of 100,000 units, though the vehicle or vehicles to be assembled were not specified. The factory, located near Charleston, will open in 2018 and ultimately employ 4,000 people. The facility will help Volvo continue its growth strategy, which includes strengthening its presence in the US market, where it wants to sell more than 100,000 cars per year. "Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," Lex Kerssemakers, senior vice president, Americas, said in a statement. Ford GT spied on the road The 2017 Ford GT was spotted testing around the Blue Oval's headquarters in Dearborn, MI, this week. The raw body panels were exposed, and they lacked paint or camouflage. It's the first time the GT has been captured on the street after a spring of auto show reveals.