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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:

Mazda Miata livery design contest in Forza Horizon 2

If you're into video games, creativity, the Mazda MX-5 Miata and South by Southwest, then there's a contest in Forza Horizon 2 you'll want to know about. Called the Livery Design Contest, your job is to head to Xbox Live sometime before midnight on January 4, 2015 and design a paint job for the 1994 Miata in the game. A panel of judges will evaluate designs for originality, aesthetic design and technical proficiency, and settle on up to five semifinalists who will regroup in the next round, which is public voting. Come January 26, the public can begin voting on its favorite design until February 12, to narrow the semifinal pool down to two. Those two will be flown to South by Southwest in Austin, TX – which happens from March 13-22 – and one of them will be crowned the winner. Said winner will lumber away from the event with $3,500 worth of prizes, including a 55-inch curved-screen television, and their livery will be free to all of the minions playing Forza Horizon 2. There's also a Mazda hub on Xbox Live for everyone to take an in-depth look at the 2016 Miata, if you just like to watch, in which case you may also want to see the related videos joining the press release below. MAZDA TEAMS UP WITH XBOX TO LAUNCH 2016 MX-5 - Mazda MX-5 Livery Design Contest Now Live in Forza Horizon 2 - - Branded hub allows Xbox users to virtually tour 2016 MX-5 and enter MX-5 design contest - Winning design to be featured in Forza Horizon 2 and gifted to all players IRVINE, Calif. (December 4, 2014) – For the second consecutive year, Mazda North American Operations (MNAO) is teaming up with Xbox, this time to promote the launch of the 2016 Mazda MX-5 and give Forza Horizon 2 players the chance to enter the Mazda MX-5 Livery Design Contest. An interactive experience with the 2016 Mazda MX-5 and information on the design contest will be available through the Mazda branded hub on Xbox 360 and Xbox One. The Mazda MX-5 Livery Design Contest, which is now live through January 4, 2015, will give Forza Horizon 2 players the opportunity to design the livery for the 1994 Mazda MX-5 currently available in-game. Two finalists will be awarded a trip in March to South by Southwest 2015 for the final design showdown. The winner will walk away with a new 55-inch curved TV, audio music system, Xbox One Kinect console and one MadCatz Racing Wheel estimated at $3,499.95.

Mazda CEO says rotary not viable, so don't look for a new one

We have some very sad news to report, rotor-heads fans: Don't expect a new rotary-powered vehicle anytime soon. This comes straight from Masamichi Kogai, the CEO of Mazda, which is the only company to ever market a commercially successful rotary-powered automobile in the world. The issue, as it has pretty much always been, is environmental.
While the Wankel rotary engine does indeed make a lot of power in a small, lightweight package, it does so while burning lots of fuel and emitting lots of noxious gases into the atmosphere, at least when running on gasoline. And that means the rotary engine will likely only ever be able to power niche vehicles. And that, in turn, means that it is very difficult to turn a profit on vehicles with rotary engines, particularly for a small automaker like Mazda.
"It has to be a viable commercial proposition. If we are going to adopt it, it has to be a product that can generate at least sales of 100,000 units a year. We have to be able to achieve a profit," said Kogai in an interview with Automotive News. Mazda sold 56,203 RX-7 models in the United States (the automaker's biggest market) in 1986. Sales of the RX-8 peaked in 2004, its first full year on the market, with just 23,690 units.