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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 installs 3-minute, fast-fuelling hydrogen fuel station in California

OK, but let's see how well Honda can control hydrogen refueling temperature in Houston or Buffalo. That's what some pessimists may be saying now that the Japanese automaker has installed a fast-fueling hydrogen station in the oh-so-temperate environs of Torrance, CA. That city is about 20 miles southwest of downtown Los Angeles and a sliver of it actually touches the Pacific Ocean, so we're not talking about wild swings in air temperature here. Honda is calling its fast-refueling platform the MC Fill (we'd expect a lawsuit if it was McFill, even though that'd be clever) and says that filling up takes about 45 percent less time than the typical hydrogen-refueling station. That's because the system monitors the ambient temperature in order to speed up the process. There's more scientific stuff in there - for example, the fact that the MC name comes from the "two key values in a heat transfer equation- 'M' for mass and 'C' for specific heat" - but the long and the short of it is that a hydrogen fuel-cell vehicle can fill up in less than three minutes. That's pretty impressive, despite the distinct lack of vehicles needing to charge that fast today. Honda unveiled its FCEV Concept vehicle at the Los Angeles Auto Show last November. The five-seat vehicle has a range of more than 300 miles, while its fuel-stack power density is about 60 percent higher than its previous version. The production version is due to arrive in the US in 2015. Check out Honda's press release below. Honda R&D Installs Advanced Fast-Fill Hydrogen Refueling Station -- New station on Honda R&D Americas' Torrance, California campus built in anticipation of Honda's next-generation fuel cell electric vehicle, due in 2015 -- Honda-developed hydrogen refueling protocol significantly reduces fill time TORRANCE, Calif., March 3, 2014 /PRNewswire/ -- Preparing for the 2015 introduction of the next Honda fuel cell-electric vehicle (FCEV), Honda R&D Americas has installed a state-of-the-art hydrogen refueling station on its Torrance, California campus. This advanced station will serve as a platform for demonstrating and validating the enhanced hydrogen fueling protocol developed by Honda, named the MC Fill. With the aim of standardizing this new protocol, Honda will make the new research station available to other automakers to further validate the MC Fill protocol's performance and functionality.

Honda reports $1.9 billion profit in first quarter despite sales lag at home

Ford, General Motors and Chrysler have been living in a world of sunshine and buttercups after their April-through-June financials hit the newswire, and Toyota is doing pretty good as well. Honda? Not so much.
While Japan's third-largest manufacturer saw $1.9 billion in profits, the 5.1-percent jump was lower than expected thanks to a drop in its home-market sales. US sales also took a sting, as Honda hasn't been able to match the SUV and truck demand that are currently permeating the American market, despite an uptick in Accord sales.
Honda's initial forecasts targeted a take of 209.3 billion yen ($2.1 billion at today's rates), and while a $200 million shortfall is nothing to sniff at, we'd hardly take this as Honda being in trouble. And even with the dip, Honda hasn't adjusted its forecast for the fiscal year, which remains at 780 billion yen ($7.9 billion).