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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:

This Japanese ad for the Toyota Prius Plug In is beyond confusing

We'll admit we don't understand all of this strange little ad for the Toyota Prius Plug In (our Japanese skills are not what they once were) but that just makes it all the more fascinating. The takeaway point is that a world full of PHEV Priuses will be astonishingly colorful at time and exciting, with food being delivered by a neck plug. Or something like that. We recommend clicking below and just watching the 60-second spot (and the short making-of video) but if you'd rather read here's what we have figured out: There's some airline-pilot type guy who is visited by who he calls his sister. The voiceover says she's some kind of saleswoman, and she begins to talk up the plug-in Prius alongside the J-Pop group AKB48 Team 8, telling the crowd – including a man in a big, round bird mask – how easy it is to plug in. The old man watching the J-Pop girls tells the woman next to him, "I have their CD." Then we see the original duo back home and the guy says he's hungry before plugging in a blue energy wire. The same wire that then starts charging a Prius. That may not really clarify anything, but there you have it. Watch for yourself below. At the very least, we won't confuse this ad for one from another automaker. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Recharge Wrap-up: Toyota HQ goes solar, CARB fights methane

Opel denies allegations about illegal emissions software as the German transport ministry begins its review. Opel has turned documents over to German authorities, and promises to hold a "constructive dialogue" while answering any lingering questions, says the automaker. Opel says that "the allegations reflect a wrong understanding of how diesel engines work." As German magazine Der Spiegel renewed questions about a cheat device similar to those used by Volkswagen, Opel reiterates, "We do not have any software that recognizes whether a vehicle is undergoing an exhaust emissions test." Read more at Automotive News Europe. South Korean President Park Geun-hye suggests that Seoul and Paris work together on the promotion of fuel cell technology. French industrial gases company Air Liquide manufactures liquid hydrogen, while Korean automaker Hyundai has already deployed its Tucson Fuel Cell crossover in select markets around the world. The two companies have signed a deal to cooperate on hydrogen technology. President Park visited an Air Liquide research center during a trip to Europe, where she said that a partnership between Hyundai and Air Liquide can help their countries stay ahead in the fuel cell vehicle market. Read more from Green Car Congress. CARB is proposing new rules for oil and gas facilities that would reduce methane emissions by more than 50 percent. The system, treatment, operation, and device standards would apply to onshore and offshore oil and gas production, storage, processing, and transmission facilities, covering procedures for leak detection and repair, equipment replacement, record keeping, and data reporting. "Methane emissions from the oil and gas industry contribute to California's [greenhouse gas] emissions and cost-effective reduction opportunities already exist and are available for use in the sector," CARB says. "In addition, reducing methane emissions from this sector will help slow the rate of climate change in the near-term and have an immediate beneficial impact on climate change." A hearing is scheduled for July 21 to discuss the proposal. Read more from SNL. Toyota's new Plano, Texas campus will get 25 percent of its energy from the sun. As Toyota plans to move into its new North American headquarters next year, it is building a 7.75-megawatt solar system to provide renewable energy for its operations. The solar arrays will be built atop three parking structures by the end of 2017.