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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:

New investor allows Suzuki to fend off VW

After years of legal wrangling, the long-soured partnership between Volkswagen and Suzuki looks finally to be coming out of arbitration, according to Bloomberg. As a sign of the Japanese brand's improved fortunes, hedge fund Third Point LLC recently bought an undisclosed stake in the company. The investor reported seeing a major opportunity in the successful Maruti Suzuki business in India. As an investment, the only major problem that Third Point found with Suzuki was its legal battle with VW. "The company's greatest asset is its low-cost manufacturing process for vehicles for the emerging market consumer," the fund said in a letter, according to Bloomberg. Third Point reportedly also wants a seat on Suzuki's board, despite being a minority shareholder. The alliance between Suzuki and VW goes back to late 2009. In the deal, the Japanese brand was meant to get access to cutting-edge tech, and the German firm got a helping hand towards better establishing itself in India and Southeast Asia. Things didn't go as planned, though. Less than two years later, Suzuki's boss publicly derided the deal. Eventually, the allegations started going back and forth, and the two have been working out a way to untangle practically ever since. Among the biggest issue has been how to get back the 19.9 percent stake that VW purchased. According to Bloomberg, the arbitration is now technically over. With the divorce nearly final, the two sides are just waiting on a decision on how to split things up. Suzuki may even just buy VW's stake to get the shares back.

Suzuki brings basket of forbidden cute to Tokyo

Suzuki looks to be celebrating its newly independent status from Volkswagen with quite a slate of debuts at this year's Tokyo Motor Show at the end of October. While it's often a putdown to call a car cute, the company has some models going on display that are totally adorable. Unless you wait around a couple decades to import one, they're also never going to see the roads here. With its big eyes and compact, chunky looks, the Ignis might be the new definition of cute 'ute. Clearly based on the iK-2 concept from this year's Geneva Motor Show, the latest interpretation softens the angular lines a little bit. The Ignis Trail Concept tries to make the standard version look a little more off-road ready with black fender flares and larger wheels. Meanwhile, the Mighty Deck concept looks like a toy car with its black roof, yellow body, and dark blue bumper. The model offers some interesting functionality with a small cargo bed in the back, complete with a tiny tailgate. The opening canvas top could make for a fun drive, too. Suzuki is also giving the incredibly cool Air Triser concept a world premiere in Tokyo. The compact, three-row minivan sports a retro-futuristic design. On the outside, glass wraps around nearly the whole thing, except for a thick pillar where the sliding doors come together. However, the interior has a wood floor, and the seats can be reconfigured to form a couch. There's even a screen in the B-pillar for everyone to watch together. We look forward to seeing if these models are as quirky in real life in just a few weeks. SUZUKI EXHIBITS AT THE 44TH TOKYO MOTOR SHOW Suzuki Motor Corporation has announced its exhibits for the 44th Tokyo Motor Show 2015 (organised by the Japan Automobile Manufacturers Association), which will open to the public on 30 October until 8 November. The theme for Suzuki's booth is "SUZUKI NEXT 100". Suzuki will be celebrating its 100th anniversary in 2020, so the exhibits represent proposals for products and technologies that give a sense of the company's preparations for ongoing success in the next 100 years. A range of concept models will show how Suzuki can deliver wonder and enjoyment to drivers and riders. The concept cars will include the IGNIS, which gives shape to Suzuki's foray into the new compact crossover genre; and the MIGHTY DECK, which offers new kinds of fun in the minicar segment.