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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:

Honda rolls out various oddities for 2015 Tokyo Auto Salon

On January 9 the doors at the Makuhari Messe in Chiba will open for the 2015 Tokyo Auto Salon. and you know what that means, boys and girls: that's right, all sorts of strange mod jobs. Not to be confused with the Tokyo Motor Show that's Japan's main automotive expo, the Tokyo Auto Salon is the Nipponese equivalent of SEMA. Honda is among the first to announce its lineup for the show, and, well... let's just say they're not all hideous and leave it at that. The H brand has got a whole array of customized machinery in store for the tuner expo, starting with the new N-Box Slash that just went on sale in Japan as the company's latest Kei car. One version of the tall wagon on the tiny wheelbase is obviously inspired by America, or at least a Japanese impression of what American car culture is like: it's decked out in red with racing stripes, flame graphics, a highway road sign and strange checkerboard wheels. Another N-Box Slash dubbed the Cyber Code:89 concept looks like something from anime, all decked out in futuristic graphics and glowing lights. A third example is rather more tastefully done up in teal with yellow accents. Of course Honda hasn't put all its eggs in the Slash basket, turning its attention as it has to other models in the JDM lineup. There's a retro N-One concept with a low-key grey and white exterior but with a zany multicolor interior, a tasteful white N-WGN with Modulo accessories, an Odyssey Absolute 20th Anniversary edition minivan, a take on the NM4 cruiser bike that'd look right at home in Akira and – one of our favorites from the lot – a Mugen take on the Honda Legend that we know as the Acura RLX. Whether your plans will take you to Tokyo for the show or not, you can scope 'em all out in the high-res image gallery for a closer look.

Honda getting in on the Daytona Prototype racing action

Racing fans at Sebring are plenty used to seeing Honda powering into the winner's circle, the Japanese motor company having claimed class victories at the endurance race in Florida in 2007, 2009, 2011, 2012 and 2013. Those were all in the LMP2 category, but with the Twelve Hours of Sebring now part of the combined United SportsCar Championship, Honda is branching out into another class: Daytona Prototypes.
The purpose-built racing machinery that were once part of the Grand-Am series are now racing alongside the LMP2 prototypes from the American Le Mans Series under the united championship. So far Ford and Chevy have signed on to power the Daytona Prototypes, and now Honda's joining their ranks as the only manufacturer to field entries in both categories of the championship's Prototype class.
The competition-spec 3.5-liter twin-turbo V6 revealed last month is based on the same J35 engine that powers everything from the Honda Accord to the Acura RLX and MDX. Now it will power the Riley chassis fielded by Starworks Motorsports, competing alongside the pair of Honda Performance Development (HPD) ARX-03b chassis which Extreme Speed Motorsports will campaign under LMP2 regulations, giving Honda a two-pronged, three-car assault on the top class of the new American sports car racing series.