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Marchionne now considering 'Plan B' partners for FCA merger

Okay Sergio, just stop. With the sting of rejection from General Motors CEO Mary Barra still fresh, Fiat Chrysler Automobiles CEO Sergio Marchionne is moving on and trying to find another automaker to merge with. FCA may not be giving up hope on a merger with GM, but that doesn't mean it isn't at least considering alternatives. Sergio's so-called "Plan Bs" include the Volkswagen Group, as well as smaller Asian outfits, like Mazda, Honda, Suzuki, and Hyundai. Bloomberg reports that France's beleaguered PSA Peugeot Citroen could as a sort of "fallback" option due to its relative lack of volume, an unidentified source claimed. There are, of course, problems with each option. According to Bloomberg, Volkswagen expects complete control of a company, but the Agnelli family, which holds a large portion of FCA stock, is loathe to relinquish its stake in the company. On top of that, VAG just isn't looking to make a deal right now. Mazda, meanwhile, is enjoying a new partnership with Toyota and Suzuki is partially owned by VW. Honda and Hyundai have never expressed any interest in a partnership with a western automaker. That kind of just leaves the French then, but even that remains a long shot. As Bloomberg tells it, PSA boss Carlos Tavares is still working on a turn-around plan, and would want at least another six months to execute before even considering a deal with FCA. And even then, Tavares hasn't given any indication that he's considering a pairing. News Source: BloombergImage Credit: Paul Sancya / AP Chrysler Fiat GM Honda Hyundai Mazda Suzuki Citroen Peugeot Sergio Marchionne FCA Mary Barra psa peugeot citroen

Honda rolls out new N-Box Slash kei car in Japan

Honda may not compete with the likes of the expanding Fiat 500 and contracting Mini families in the North American or European markets, but back home in Japan it has a whole series of retro hatchbacks, grouped together as part of its N series. And now there is one more. Called the N-Box Slash (or N/ for short), the boxy but stylish new hatch is built to fit into Japan's rigid Kei car class, which means a tiny footprint no longer than 11 feet long and five feet wide. That makes it even smaller than the already-diminutive Smart Forfour or Renault Twingo, but into that compact form, Honda has fit five doors and four seats under a tall roof. In fact those front seats even fold flat and flush with the rear ones to make for as big a bed as you could possibly fit inside its compact dimensions. Technical details remain scarce, but power likely comes from the same 600cc three-cylinder engine - turbocharged or not, driving the front wheels or all four - as the rest of the N series, which already includes the N-One, N-Box, N-Box+ and N-WGN. Feel free to read the original Japanese or Google-translated press releases below, just don't expect it or any of its stablemates to show up in a North American showroom any time soon. 2014.11.27 ???????N-BOX SLASH(?????? ?????)????????????? Honda??12?22?(?)???????????N??????1?5?????????N-BOX SLASH(?????? ?????)?????????11?27?(?)?Honda????????????????? N-BOX SLASH?????????????N??????????????????????????????????????????????"???????"?"??????"??????????????????????????????????????????5???????????????Honda?????????? ???????????????N???????????????????? ?????????????????????? http://www.honda.co.jp/Nboxslash/new/ ?1 ?N??????????????????????????????????????Honda??????????????M?M(????????/???????)?????????????????????????????????????????????????????????????N??????1?????N-BOX(??????)???2?????N-BOX +(?????????)???3?????N-ONE(????)???4?????N-WGN(?????)? ?????????????? ?????????? 0120-112010(???????)?????????? ### (translated) 2014.11.27 Preceding publish new mini passenger car "N-BOX SLASH (NTT box slash)" in the home page Honda is, December 22 (Monday) to have plans to release "N" series ? 1 information about the fifth installment of the new mini-car "N-BOX SLASH (NTT box slash)", November 27 ( I was preceded published in Honda's home page on the tree).

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: