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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:

Scion trying to build business case for FR-S convertible as Subaru bows out

Hope may remain for a convertible version of the Scion FR-S, according to a report from Ward's Auto. You'll recall that rumors were swirling about the feasibility of a rear-drive Toyobaru convertible as early as October, and that back in November, Subaru - which makes the FR-S, Subaru BRZ and Toyota GT86 - essentially nixed the idea of an open-topped variant.
"We make the car, so if we don't make it, it can't happen," brand chief Yasuyuki Yoshinaga told Automotive News, according to Ward's, at the Tokyo Motor Show. "Our engineering department told me that losing the entire roof requires a complete redesign of the structure. It would need a big change."
Despite Yoshinaga-san's arguments against a droptop variant, Toyota is apparently still considering the model. Speaking to media at the 2014 North American International Auto Show, Scion's US vice president, Doug Murtha, hinted that the rear-drive droptop was in the works.

Recharge Wrap-up: Minnesota first to require biodiesel, maglev in Israel, Toyota FCV in Aspen

A new Minnesota law that requires biodiesel blends goes into effect in just a few days, says KELO. Diesel drivers in Minnesota will be pumping soybeans into their tank beginning July 1. Every year, diesel will be sold as a B10 blend (ten percent biofuel) from April through August, and will scale back to a cold-hardy B5 blend from September through March. The biofuel largely comes from soybean crops grown within Minnesota, and the biodiesel industry pumps more than $900 million into the state economy every year. According to the National Biodiesel Board, using the B10 and B5 blends will reduce greenhouse gas emissions by 1,342,000,000 pounds every year. Minnesota is the first state to require diesel to be sold as a biofuel blend. In Japan, Isuzu Motors and Japanese biotech venture Euglena are teaming up to create biodiesel using algae, according to Bloomberg Businessweek. The goal is to create a new type of fuel that doesn't need to be mixed with light oil to be used in engines. "As long as we use light oil for diesel engines, emissions of carbon dioxide are inevitable," says Isuzu president Susumu Hosoi. Euglena has also been using algae to develop jet fuel with airline operator ANA Holdings. Isuzu and Euglena hope to have the new biodiesel developed by 2018. Aerial maglev transportation is coming to the campus of a defense contractor in Tel Aviv, Israel, Wired reports. The SkyTran personal rapid transit system uses small pods on an elevated magnetic track to move people from place to place. The pilot program will see SkyTran come to the corporate campus of Israel Aerospace Industries as soon as next year. The pods are hailed by phone, and carry passengers along the magnetic rail system at speeds of up to 44 miles per hour. The passive magnetic system levitates the pod attachment a centimeter above the rails, while a burst of electricity propels the pod forward. If the test at the campus goes well, SkyTran could spread to Tel Aviv at large, moving up to 12,000 people per track per hour with top speeds of 150 mph. The pre-production prototype of the Toyota FCV will make its North American debut at the 2014 Aspen Ideas Festival on Friday, June 27. The hydrogen car's finished exterior was revealed in Japan on Wednesday along with its nearly $70,000 price tag. It will go on sale in Japan by April of next year, and will come to Europe and California in the summer of 2015.