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Honda boss says Chinese drivers don't want green cars

According to The Wall Street Journal, Honda CEO Takanobu Ito believes that China's nascent car-buying demographic isn't all that interested in hybrid cars - at least not yet. The emissions story doesn't resonate with them, and certainly not for the higher purchase premium such models usually carry. What they really want, Ito believes, is reliable, affordable cars that fit their needs. When it comes to Honda sales, the numbers would appear to jibe with his thoughts: Honda sold 598,577 vehicles in China last year through its two joint ventures, yet just 542 of them were hybrids - not even a tenth of a percent. However, Toyota sold 840,500 cars in China last year, and two percent of that total, 17,300 units, were hybrids, which is closer to the still-piddling three-percent ratio of sales that Toyota posted in the US last year.
Honda offers the Insight, Fit Hybrid and CR-Z in China and plans to make components for its Integrated Motor Assist hybrid system there from next year, the hope being it will reduce the cost of hybrid cars for local buyers. That was one part of the plan Honda laid out last year to popularize its IMA system in China. Other initiatives include the introduction of a new hybrid system for mid-sized and large vehicles and a plug-in hybrid. Among the four new vehicles Honda showed during this weekend's press day for the Shanghai Motor Show (including the Concept M minivan pictured above) there was not a single hybrid among them.

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:

McLaren working on P15 supercar to slot between 650S and P1

McLaren has been busy these past few years. It launched the MP4-12C in 2011, the 12C Spider in 2012, the P1 in 2013 and (most recently) the 650S in 2014. But it's not about to stop there. It's got an "entry-level" model in the works, set to take on the Porsche 911, and - according to information reported by Car and Driver and confirmed by McLaren in correspondence with Autoblog - a new flagship model, too.
The project is internally codenamed P15, and it calls for a new flagship that will cap the company's lineup once the P1 finishes its limited production run, but carry a price tag in the neighborhood of $500k to slot in between the P1 and the new 650S.
Just how, you wonder, can McLaren possibly develop another supercar each year? Simple: underneath, they're all essentially the same. (Only we're sure it's anything but simple.) That is to say they're all based on the same carbon monocoque structure and powered by the same 3.8-liter twin-turbo V8 mated to a seven-speed dual-clutch transmission driving the rear wheels. What differentiates them is what the engineers in Woking build around that monocoque and how they tune the engine: +/- 600 horsepower in the 12C (depending on the year it was built), 640 hp in the 650S, or 727 hp in the P1 (with another 177 from the electric assist). The 911 fighter would likely develop in the 500hp range, and the P15 will probably land in the upper 600 (or lower 700) range.