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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:

Mitsubishi recalling i-MiEV models for brake problem

Mitsubishi is issuing a recall for the 2010-2014 i-MiEV that affects 1,810 units of the little electric car, because it's possible for the brake vacuum pump to stop working. If this happens, the result would be longer stopping distances, according to the company. The affected models were built between September 15, 2009, and March 25, 2014.
While this is just a single recall, there are actually two things that can cause this brake problem on the i-MiEV, according to Mitsubishi's filing with the National Highway Traffic Safety Administration. First, bad programming in the EV-ECU could cause the system to "falsely judge that the relay contact point is stuck," according to the full NHTSA defect notice PDF. Second, the vacuum pump exhaust hole could be corroded and blocked due to being splashed with road salt. However, the company says that if either fault happens, the brake warning lamp would illuminate, and there would be an audible alarm.
Depending on which issue is affecting an owner's i-MiEV, Mitsubishi is going to reprogram the software, replace the pump or both. Scroll down to read the recall report from NHTSA.

Mechanic bagged by red light camera at 3AM driving customer car

This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. An Oregon woman took her 2001 Mitsubishi Montero to Steve's Imports in Portland to have the emissions system fixed; the business, however, is a repair and body shop that doesn't appear to specialize in emissions. After paying $2,299.05 for the fix she got a call from the shop informing her that a repairman had been caught on camera running a red light, so she should expect a ticket. When the ticket came, the image with it was the one above, taken at 2:59 AM. The shop's owner, Steve Spinnett, said the man in the car is his son, Tommy Spinnett, who is the shop foreman. The woman is a "family friend" that Tommy was picking up from a concert. Steve told KVAL news that his son had the car all weekend to put it through a drive cycle, and that the shop doesn't charge for drive cycles done after hours. Even if all of that is true, drive cycles don't take a whole weekend - a thorough emissions-test drive cycle can be done in a couple of hours. And then there's this: the owner needed to pass the emissions test to get new license plates; the ones on the vehicle that Tommy drove over the weekend were expired. We've written about some egregious instances of customer abuse at the hands of dealership and repair shops, but this isn't one of them. But it looks bad and it's suspicious, and everyone involved might want to be more careful next time. You'll find more details on the incident in the video.