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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:

Acura ILX Type S could get 300-hp turbo four

There's good news and bad news when it comes to the new Honda Civic Type R. The good news is that after more than a year of prototypes and concepts, the Japanese automaker's new hot hatch is about to make its production debut next month. The bad news is that it's not coming here, but there is a silver lining in even that dark rain cloud – namely, that Honda plans on slotting its 2.0-liter VTEC turbo four into something that it will actually offer Stateside. Earlier rumors suggested the US donor vehicle would also be a Civic, but the latest intel indicates it could be something different, albeit related. According to Car and Driver, which spoke recently with Acura product planning manager Gary Robinson, Honda's luxury division could be gearing up to shoehorn the engine into the recently updated ILX – which itself is based on the Civic. "Acura is always going to get the best engines Honda makes," said Robinson. "Obviously a 2.0-liter turbo is more of a must-have in the luxury world than it is in the mainstream" market, suggesting that an ILX Type S could be in the works with upwards of 300 horsepower. Getting it to fit, though, could prove a rather large challenge – and could mean the engine swap would have to wait until the next-generation model comes around. Considering that the ILX was just updated for 2016, C/D doesn't expect the full redesign to come until 2018 at the earliest. Here's hoping that if it takes that long, Honda will slot the engine into something else for US showrooms in the meantime. The revival of the Type S badge in and of itself, however, makes for an enticing prospect. The last time we saw it used was on the larger TL sedan, which upgraded the 3.2-liter V6 from the 225 horsepower to 260. Before that, the RSX jumped from 160 horsepower in the base model to 200 in the first Type S, 210 in the second and 217 in the ultimate Type R. As it stands, the new ILX (after dropping the hybrid and base 2.0 models, is powered exclusively by a 2.4-liter inline four with 201 hp on tap.

Honda Urban SUV Concept leaks out ahead of Detroit debut

Next up on the 2013 Detroit Auto Show embargo-break-a-palooza: the Honda Urban SUV Concept. Thanks to Indian Autos Blog, we now have the first press shots of the small crossover concept - a vehicle that will someday make it to production, riding on the Honda Fit platform.
It may have some big features - namely, the large headlamps, big wheels, and bold body lines - but the Urban SUV Concept will compete with smaller vehicles like the Nissan Juke or Fiat 500L. Indian Autos Blog reports that both 1.6- an 1.8-liter four-cylinder engines are being speculated for use in the production model, as well as a diesel powerplant for foreign markets.
That's all we know for now, but stay tuned to see the full smattering of official images and details as part of this week's Detroit coverage.