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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:

Union to launch Toyota organization drive in Canada

Toyota may be heading toward some labor issues in the Great White North, as employees at a pair of Canadian Toyota factories may be set for a certification vote. The Unifor union, which was the result of a merger last year between the Canadian Auto Workers and the Communications, Energy and Paperworkers union, will be holding the vote.
Over 40 percent of the employees at the Woodstock and Cambridge, Ontario factories have signed union cards, cresting the minimum percentage required to instigate a legal certification vote, according to Reuters. The Woodstock factory is responsible for RAV4 production, while Cambridge builds the Lexus RX350 and RX450h, as well as the Toyota Corolla. The two factories employ nearly 7,000 people.
It's unclear when the union will hold a certification vote at the two factories, but what is rather clear are the worker complaints. Employees are concerned about workers being hired on temporary contracts which lack the benefits of full employment, John Aman, head of organizing for Unifor, told Reuters.

BMW could have a fuel cell vehicle by 2020

The Ultimate Driving Machine may start emitting water vapor, which may not thrill gearheads but could be good for the environment. BMW may have a hydrogen fuel-cell electric vehicle to sell as soon as the end of the decade, UK's Auto Express says, citing people familiar with the process that it didn't identify. And the model will likely be sold within the i sub-brand that includes the i3 electric vehicle and the i8 plug-in hybrid. "We are working on fuel cell development, but we are not able to comment on vehicle plans at this stage or timing at this point," BMW spokesman Dave Buchko wrote in an e-mail to AutoblogGreen on Thursday. Chatter about a potential BMW fuel-cell vehicle has been getting louder in recent months. Late last year, Autocar reported that BMW was mulling using Toyota's fuel-cell system for a version of what would be called the i5 (all the better to quietly cruise the interstate running up and down the West Coast, we guess). BMW and Toyota have been working together on accelerating the development of fuel-cell technology since 2013. Toyota has since made good on the effort of selling fuel-cell vehicles by introducing the Mirai in Japan last year and is preparing to start sales in California later this year. But BMW has been mum, so far. Featured Gallery 2014 BMW i3: First Drive View 33 Photos News Source: Auto Express via Hybrid CarsImage Credit: Copyright 2015 Sebastian Blanco / AOL Green BMW Toyota Hydrogen Cars i5