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April 2014: The ramping-up-for-summer edition

Americans appear to be gearing up for further increases in US gas prices, as green-car sales last month had their largest year-over-year gains of 2014. Domestic customers bought almost 56,000 hybrids, plug-ins and diesels in April, marking a 2.6 percent increase from April 2013. Plug-in sales were particularly strong, jumping 41 percent from a year earlier, as sales of the Chevrolet Volt extended-range plug-in and Nissan Leaf and Tesla Model S battery-electric vehicles all showed gains. April's big winner among the automakers was Honda, moving 1,442 units of its newer Accord Hybrid And April's big winner among the automakers was...Honda? Yes, Honda, which has long operated in the advanced-powertrain shadow of fellow Japanese automakers Toyota and Nissan, came up big by moving 1,442 units of its newer Accord Hybrid. And while sales of the Civic Hybrid, CR-Z and Insight all fell, the Accord Hybrid drove Honda to boost its green-car sales by 78 percent from a year earlier to 2,839 units. Per usual, Nissan and Tesla also showed year-over-year gains. Nissan boosted Leaf sales by 7.8 percent to 2,088 units. And while Tesla won't release its first-quarter results until May 7, the California-based automaker would've increased Model S sales by 34 percent to 2,300 just by maintaining its fourth-quarter 2013 sales pace. Volkswagen and low-volume advanced-powertrain vehicle makers like Audi, Porsche and Daimler AG's Smart division also fared well in April. VW increased its diesel and Jetta Hybrid sales by 25 percent to 9,583 units. Audi's diesel sales quadrupled to 2,088 units. Smart sold 203 units of its newer Smart ED battery-electric vehicle. Such gains more than offset sales declines from General Motors, Ford and Toyota, though Toyota's April was less painful than previous months. GM's big mild-hybrid sales declines more than offset the 19 percent increase in Chevy Volt sales to 1,548 units and the sales of 491 Chevrolet Cruze Diesel vehicles. All told, GM's green-car sales declined 25 percent to 3,103 units. Fusion Energi Plug-in Hybrid sales doubled and C-Max Energi PHEV sales jumped 28 percent. Ford's green-car sales were down 12 percent to 7,554 vehicles. While Fusion Energi Plug-in Hybrid sales doubled and C-Max Energi PHEV sales jumped 28 percent, Fusion Hybrid sales were little-changed while C-Max Hybrid sales tumbled 50 percent to 1,586 units.

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 invests $215M in Ohio Earth Dreams production

Honda has announced a $215 million investment in a pair of its Ohio operations, taking its total tally for North American operations up to $2.7 billion in three years. The announcement was made at the 2013 Center For Automotive Research Management Briefing Seminars in Traverse City.
$180 million of the investment is earmarked for Honda's Anna, OH engine plant. The money will allow the facility to increase its aluminum die casting and increase production of Honda's Earth Dreams Technology engines. Think of Earth Dreams as sort of like Mazda's Skyactiv line, only ED is limited to a new line of engines, rather than a full suite of automotive components. Anna will also be getting a new technical center to train engineers, techs, and line workers on powertrain technology.
The remaining $35 million is slated for Honda's main Ohio operations in Marysville. A 160,000-square-foot facility will be constructed near Honda's current properties, which will house another technical training center to focus on automotive manufacturing. The new building will also house Honda's North American Services group, as well as a new heritage center.