Resistance Is Futile: You Will Be Consolidated

"Justin Hughes" (justinhughes54) 02/18/2016 at 16:54 • Filed to: auto industry

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America currently has three (two and half, really) auto manufacturers. Germany also has three, when you count Audi and Porsche under the Volkswagen banner. Japan, however, has seven. A recent !!!error: Indecipherable SUB-paragraph formatting!!! article suggests that further consolidation would be good for Japan’s auto industry. As Star Trek’s Borg say, “We will add your biological and technological distinctiveness to our own.” Fewer companies would be competing for the same resources, and it’s been well proven that unlike GM’s past, it’s possible for rather different brands to share the same basic platform while retaining each brand’s distinctiveness - the Fiat 500X and the Jeep Renegade, for example. But exactly how would this consolidation go down? Who would acquire who, and who would be consolidated in the process? And how might enthusiasts benefit from the situation?

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Toyota

Let’s grab the low hanging fruit first. Thanks to Dieselgate dethroning Volkswagen, Toyota has reclaimed the throne of the world’s largest automaker. They’re going to be the ones gobbling up other companies, not getting gobbled themselves. In fact they’ve already started, by buying Daihatsu last month. Subaru has already partnered with Toyota to build a car - the BRZ that’s parked in my garage right now. That partnership could extend further. Subaru’s sales are already limited by their production capacity, which Toyota may be able to help supplement. Subaru could remain its own brand, with its own styling, standard all wheel drive, and such. But platform sharing would reduce costs for both companies, and open the door to all wheel drive versions of the Corolla and Camry. Eventually Subaru may lose another one of their distinctive features, the boxer engine, in favor of Toyota’s more refined inline motors. Alternately, Toyota may refine Subaru’s designs and use them in appropriate applications, like sports cars.

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Platform sharing could happen here, too. The NC Miata shared its platform with the RX-8, so there’s nothing new here. Mazda and Toyobaru both insist that the Miata and FR-S/BRZ are not direct competitors, despite numerous head to head comparisons. So why not use the same platform for the next generation of both? They’re similar cars with similar goals. Any extra chassis rigidity given to the convertible Miata would also help the hardtop coupe.

Mazda builds fun cars. Subaru has it in them, too, if they put their mind to it. These two brands, with the resources of Toyota behind them, could do really amazing things for us enthusiasts. And Toyota, with a reputation for some of the most solid, reliable, but boring cars in the world, would benefit from a fresh injection of fun. Everybody wins.

Nissan

We likely won’t see much change at Nissan. That’s OK, because Nissan is doing quite well on their own. We don’t hear much about them, but then we’re surprised to see them competing closely with Honda for second place behind Toyota. They might buy up Suzuki, having partnered with them in the past to build the Equator pickup truck, a thinly disguised Nissan Frontier, as well as other cars not sold in the US. But overall, Nissan seems to be the strong, silent type. They also already have a full range of cars, trucks, SUVs, crossovers, and such. Unlike...

Honda

Honda has a good, solid car line. The new Civic ought to do well, and the Type R will no longer be unobtainium in North America. That’s a wonderful thing. The Fit and Accord are good at what they do. The CR-V is a decent crossover. The Pilot isn’t that popular, and the HR-V and Odyssey are yawn. The Ridgeline is coming back, but even in its more truck-like form, many truck fans still believe it’s not a real truck. Sedans are on the way out, trucks and SUVs are in, and Honda is being caught short. What to do?

Buy Fiat/Chrysler.

I know this sounds utterly ludicrous, but hear me out. CEO Sergio Marchionne seems desperate to merge FCA with someone. He’s banking the future success of FCA on trucks and SUVs while allowing cars like the Dodge Dart and Chrysler 200 to run their course, then fade away. FCA’s strengths are the exact opposite of Honda’s - and that’s why they’d be excellent partners. Honda would instantly gain a strong, successful truck and SUV line. Just like that, Honda has a full line of “real” pickup trucks, thanks to Ram. They even get the crown jewel of SUV brands - Jeep. FCA’s own lackluster small cars could be replaced by Hondas, which have been among the best small and midsize cars available for many, many years.

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Whether you ask !!!error: Indecipherable SUB-paragraph formatting!!! or !!!error: Indecipherable SUB-paragraph formatting!!! , none of the FCA brands have the best reputation for durable, high quality products. In fact, their brands tend to rank toward or at the bottom of these lists, with Fiat at the bottom of both. Quality and reliability are Honda’s strengths, and you can bet that nothing under Honda’s banner will be allowed to be poor quality. Honda’s acquisition of FCA would hopefully lead to Honda quality spreading throughout the FCA line, curing one of their few current weaknesses.

And while we’re at it, why not revive !!!error: Indecipherable SUB-paragraph formatting!!! by bringing Mitsubishi into the fold as well. They’re small and not doing so well these days. They’ve benefited from Chrysler’s help before, so why not do it again. With any luck this could lead to a reborn Eclipse that goes back to its turbocharged, AWD, fire breathing roots instead of a sporty looking Chrysler Sebring.

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Will any of this actually happen? Who knows. Most of these companies are doing all right on their own right now. It may actually make more sense for the Japanese manufacturers not to consolidate, but to keep working together and licensing each other’s technology while remaining independent. But it’s fun to speculate and ask “what if.”

Photo credits: M 93 / Wikipedia, Blake Noble, Nissan, Rich Niewiroski Jr./ Wikipedia, Tech Times

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ranwhenparked > Justin Hughes 02/18/2016 at 17:01

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I don’t think its out of the realm of possibility that Subaru and Mazda will get gobbled up by somebody larger at some point (they both kind of already were, before being cut loose by GM and Ford, respectively). Toyota already owns a chunk of Fuji Heavy Industries, and Mazda already has product sharing deals with Toyota and Fiat Chrysler, so there could be a template for further integration already there.

Suzuki and Mitsubishi are kind of a different story. I don’t know that their car businesses are really compelling enough for anyone else to really want to buy them, but, at the same time, both do well enough in certain markets that it doesn’t make sense for them to just abandon the industry.

Chris_K_F drives an FR-Slow > Justin Hughes 02/18/2016 at 17:04

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...and open the door to all wheel drive versions of the Corolla and Camry.

Bring back the AllTrac’s!

Tareim - V8 powered > Justin Hughes 02/18/2016 at 17:15

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we cannot lose the boxer, it’s a great engine configuration, at least for sports cars if not all

PorkchoPlissken > Justin Hughes 02/18/2016 at 17:19

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It’s almost that US companies should separate the brands from performance models, or other unique vehicles, and consolidate everything else. I’m just thinking that cars like the Vette, mustang, challenger, etc stand out, but all other models are pretty indistinguishable from their rivals. Of course truck consolidation would never work due to loyalties and numbers. Not that I have any figures to back this up. Japan seems pretty different. Part of me hates to see the consolidation of some of these companies (do we really need more corollas with different badges?) but it does seem that there might be some benefits to the sharing of all that tech. Again, no facts no back this up. I never have facts.

Justin Hughes > Chris_K_F drives an FR-Slow 02/18/2016 at 17:19

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Yeeeeeeeees!!!

Chris_K_F drives an FR-Slow > Justin Hughes 02/18/2016 at 17:21

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I would absolutely consider getting rid of the FR-S for a new Corolla AllTrac with a nice 1.8l turbo. OR they could bring back the Celica... :D

Justin Hughes > Tareim - V8 powered 02/18/2016 at 17:21

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You’re preaching to the choir, my friend. :)

Justin Hughes > PorkchoPlissken 02/18/2016 at 17:24

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It makes sense, though. I’ve made somewhat similar suggestions before. You should’ve heard the static I got for suggesting that GM quit selling the same trucks as both Chevy and GMC! I’ve got your truck brand loyalty proof right here.

Justin Hughes > Chris_K_F drives an FR-Slow 02/18/2016 at 17:25

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You mean the Scion tC? *ducks*

Chris_K_F drives an FR-Slow > Justin Hughes 02/18/2016 at 17:37

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-_-

PorkchoPlissken > Justin Hughes 02/18/2016 at 17:39

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With pickups becoming more outlandishly luxurious every generation, GMC is all but obsolete, except for heavy duty trucks. And a new Syclone. We need a new Syclone.

LongbowMkII > Justin Hughes 03/27/2016 at 17:57

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I think FCA would be an albatross for whoever merges with them.

I’d be moderately surprised if there are any 2022 Dodges. It’s hanging on with the obsolete dart, journey, and upgraded but still ancient challenger/Charger. I think FCA taking Chrysler downmarket and giving them the new Pacifica gives Dodge nowhere to go. Honestly Dodge is EASILY expendable right now. FCA could retain the Charger/Chally base with the cheaper 300 replacement. Fiat could fill in with a stylish compact above the 500(and crossover variant obviously)