2018 Toyota C-hr Xle Premium on 2040-cars

Auto blog

Toyota fears supplier pressure in Australia with GM pull out

With Ford and General Motors both announcing an end to production in Australia, the country's auto industry is in a bad way. With the exit of two big players, there's increased concern that a third Australian manufacturer, Toyota, will be forced out, as well.
"We are saddened to learn of GM Holden's decision. This will place unprecedented pressure on the local supplier network and our ability to build cars in Australia," Toyota Australia said in a statement. The GM closure of Holden production will be the direct end to 2,900 jobs, but will also force a dramatic reduction in the size of the country's supplier network, as there will simply be fewer cars to build.
In the same statement, Toyota Australia said it would work with suppliers and local government to figure out whether continuing production Down Under was even feasible. According to Automotive News, a representative for the Australian Manufacturing Workers' Union told reporters it was "highly likely" that Toyota would also close up shop within the next few years.

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:

How Toyota's Le Mans racer may make its next Prius even better

The supercapacitor technology in the Toyota TS040 "offers great possibility for production car use." – Amanda Rice, Toyota Pop-culture junkies familiar with 1980s touchstone movies will hear the word "capacitor" and think Back to the Future. But the concept of supercapacitors being used in upcoming production models is being pushed by Toyota, not DeLorean. And because of that push, the future might look a little brighter for the Prius. The Japanese automaker will likely apply electric-motor technology used in Toyota's 24 Hours of Le Mans entry – the TS040 – in future versions of the world's best-selling hybrid, Australian publication Drive.com.au says, citing an interview with Toyota Motor Sports' Yoshiaki Kinoshita. Specifically, the racecar uses supercapacitors because they're effective at storing energy created when the vehicle is under braking, only to quickly redistribute it on demand for rapid acceleration. Kinoshita said Toyota may apply this technology to the Prius within the next five years. While declining to comment on specifics, Toyota spokeswoman Amanda Rice tells AutoblogGreen that the Le Mans vehicle "represents an advanced vehicle laboratory for hybrid vehicle and component development. The supercapacitor technology used in this vehicle with its fast charge and discharge capability offers great possibility for production car use." In her email, Rice added that the next-generation Prius will have smaller electric motors with greater power density and thermal efficiency, so let's add that to what we know or think we know about the fourth-generation model. Toyota entered two vehicles in this year's Le Mans race, and one of them had secured the pole-position and was leading much of the race before calling it quits 15 hours in because of electrical issues. Audi ended up winning the race, marking its 13th victory in the history of the French endurance contest.