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California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

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:

Mazda to use rotary engine as a range-extender with its first electric vehicle

There's more news from Mazda at the Tokyo Motor Show, where the brand made a big splash, including new developments in its never-ending rotary engine saga. First, Mazda execs confirmed that the Japanese automaker will bring back the rotary engine as a range-extender and battery juicer for its first electric vehicle in 2019. But secondly, the company won't have a rotary-powered successor to its RX-7 and RX-8 sportscars in time for the company's centennial anniversary in 2020. Autoblog previously confirmed that Mazda is planning to have an EV in 2019 that will be available in both pure electric and range-extending versions. Now, the Australian website Motoring reports that the global EV will feature a powertrain similar to the experimental Japan-only Mazda2 (Demio) EV, which used a single-rotor engine as a generator to power the battery pack and increase its driving range. The publication says Mazda plans to release a series of plug-in hybrids based on existing models around 2020, then a pure electric car co-developed with Toyota and Denso in 2021 as part of the EV Common Architecture Spirit Company joint venture. A Mazda spokesman tells Autoblog the company couldn't confirm any details about future products. Meanwhile, enthusiasts shouldn't wait for a rotary-based production version of Mazda's RX-Vision concept from 2015. Motoring cites two executives who explain that the company simply lacks the capital necessary to invest in developing the new model in time for its 2020 centennial. Mazda debuted its rotary engine 50 years ago in the Cosmo Sport in part as a way to stand out from its larger Japanese competitors. The engine, which uses a spinning three-tipped rotor in place of pistons, is smaller and lighter than conventional piston engines, with a greater power-to-weight ratio and quieter, smoother operation. But it delivers less fuel economy and higher emissions — two weaknesses that could be improved via a stop-start system Mazda has developed, based on a pair of U.S. patents. The company has also been hard at work developing its next-generation Skyactiv-X engine, which uses highly precise combustion ignition technology to deliver significant gains in fuel economy and power.Related Video: