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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 Civic Tourer caught testing ahead of 2014 launch

Honda showed off its Civic Tourer concept at the Geneva Motor Show in March, and at that time, we were told that a production version would be coming to market in the very near future. Obviously, the sleek lines of the concept car will be dumbed down slightly for consumers, but that doesn't mean the Civic wagon will be a bland machine. The Euro-spec Civic's angular front end looks like it will blend nicely with the rakish rump that we saw on the concept.
Our sources suggest that not only will the Civic Tourer be a class-leader in terms of cargo capacity, but it will likely be a pretty engaging car from behind the wheel, as well. Honda is hoping that the Tourer will account for roughly 20 percent of all European Civic sales after it goes on sale.
Expect to see the production car debut at the Frankfurt Motor Show this September, with the first customers taking delivery in early 2014. In the meantime, have a look at the camouflaged swoopy wagon from all angles in our gallery above.

Honda begins Micro Commuter testing

Autocar is reporting that Honda is about to start testing prototypes of its Micro Commuter, a petite EV that'll do adorable battle with the Renault Twizy if it reaches production.
Honda first showed the Micro Commuter, a so called super-urban vehicle, in November. Like the Renault, it features a 1+1 setup, meaning there's a central seat up front and a small backseat behind it. Honda has designed the tandem runabout for versatility, featuring a body that can be adapted for everything from child hauling to elderly passengers.
A rear-mounted electric motor draws power from a 15-kilowatt, lithium-ion battery, granting it a top speed of 50 miles per hour. With 37 miles of range, the Micro Commuter could be a neat urban solution. That said, these were figures that were announced in November, so we wouldn't be surprised to see them change as Honda gathers data from its new prototype testing program.