For manufacturers of engine timing chains, main bearings or any of the hundreds of unique components for engines and transmissions, EVs like the Nissan Leaf pose an enormous threat. Decades of investment in the manufacturing technologies and IP are potentially rendered irrelevant if the switch to battery-powered EVs progresses at the rate that its optimists proclaim. Bloomberg tells the tales of woe from anxious Japanese suppliers: “It’s a crisis-like situation,” said Toru Fujiwara, head of Tsubakimoto’s auto-parts division. “With electric cars, there’s no way we can apply our current technology.” Especially when their current technology lacks AC or DC. (Read More…)

Reuters reports that Japanese manufacturers are running scared from Hyundai-Kia. A combination of a rising Yen and South Korea sealing more and more free trade agreements with other countries has helped Hyundai-Kia immensely. Of course, copying Toyota’s business model of building reliable cars at affordable prices has helped greatly, too. All this momentum from South Korea is getting Japanese car executives a little bit nervous. “I think there’s a sense of crisis in the whole (Japanese) industry,” Toshiyuki Shiga, chief operating officer at Nissan Motor. “Whether you take the Free Trade Agreements or foreign exchange policy, I get the impression that South Korea is tackling things well.”

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After months of teases and race-car previewing, Toyota is publicly unveiling its production-spec LF-A supercar at the Tokyo Auto Show [via Automotive News [sub]]. And it’s a legitimate front-engine supercar, with a 4.8 liter V10 motivating it to 60 MPH in 3.7 seconds. It even has a true supercar pricetag: $375,000. But how does this car square with Toyota’s appliance-and-environment-driven image? “It’s our mission as automakers to offer cars that possess the ‘fun’ spirit that should be at the base of any car,” explains Akio Toyoda, who sees the supercar as a way to gain attention in developing markets. But having axed its own front-engine V-10 supercar, Honda is reacting to the LF-A by retreating into greener-than-thou sniping. “Sure, there are folks who like that ‘vroom’ of the engine out of nostalgia,” snickers Honda prez Takanobu Ito. “The era of V10 engines is gone.” And you’ll never guess what vehicle Ito offers up as Honda’s counterpoint to the LF-A.

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Since it’s shaping up to be Luxury Sedan Day here at TTAC (actually, it’s water-heater explosion day here at TTAC West, but that’s another, less-interesting story) we thought we’d show you Toyota’s Mark X [via Autocar], a sedan it figures could be a budget competitor to the BMW 5 series. But rather than getting hung up on what Toyota wants this car to be, let’s take a look at what it actually is: a Toyotaized version of the GS-series Lexus. This is the same strategy Toyota has taken with its HS250h, offering a JDM-only Toyota version of a Lexus product, although the Mark X’s differences go beyond a cheaper interior. Detuned versions of the 2.5 and 3.5 liter V6s found in the IS-series are offered as engine choices, in hopes of not intruding too much on the GS’s territory. And though none of this is likely to impact the US market, it’s worth noting that this is a questionable strategy at best. Lexus has succeeded in this country because of Toyota’s diligence in differentiating them from pedestrian T-branded offerings. If Toyota ever gets the brilliant idea of offering quick-and-dirty, down-economy rebadges of Lexus vehicles, it will find itself in a GM-sized branding nightmare before it can say “Buick.” And don’t think for a second that nobody at Toyota is thinking of making this the next Toyota Avalon. Just say no!

A touching story of auto-industry love may be developing between Mitsubishi and PSA, reports All Cars Electric, citing Wards [sub] and French newspaper reports. It seems the French concern was deeply smitten with Mitsubishi’s $45k MiEV electric car and pursued the option for Citroen and Peugeot-branded versions. And apparently, the more PSA learned about the Japanese company, the more they liked. Did hands brush awkwardly over battery capacity charts, causing a thrilling moment of heart-fluttering eye contact? Executives did share the stage at the announcement of the EV-sharing deal, and now sources close to the deal say the new-found relationship could be snowballing towards a full-on R&D cost-sharing alliance.

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As the latest sales show (and have been showing for some time now) Scion is one hot mess. And though the best advice we can give is for Toyota to start selling its JDM confections as Toyotas, somehow we don’t think the big T wants to hear it. Instead, why not pick a new lineup from the latest batch of Daihatsu concepts shown at the Tokyo show [courtesy:AutoBild]? Or better yet, post a link to other Toyota/Daihatsu products that could pep up the least youthful “youth brand’s” sales. After all, anything would be better than leaving Scion as-is.

The FT-86 concept, based on an RWD variant of the Subaru Impreza chassis, has been revealed at the Tokyo Auto Show. And behold, the Toyobaru coupe of internet legend appears to be in near-production trim. With a 2.0 boxer four, a six-speed manual and a forecast base price of under $30k, the FT-86 hopes to live up to the promise of its AE86 reference point. If nothing else, it signals the possible end of a long winter for Toyota’s enthusiast lineup, which effectively went into hibernation when the MR-2 Spyder was canned in 2007. But don’t get too excited. The FT-86 production model won’t go on sale in Japan until “late 2011,” so it’s anyone’s guess when it will become available in the States.

Hyundai is awesome. They are undoubtedly a threat because their products are cheap, and the quality is improving

Honda CEO Takanobu Ito in the Canadian Press. “Hyundai is the biggest threat for the Japanese automakers,” adds Nissan senior VP Shiro Nakamura. “We have to offer the equivalents of sushi, tempura and kaiseki to compete against Korean barbecue.” Now imagine the reaction these quotes would have received ten years ago.

Akio Toyoda faces the music at the Japan Press Club [Video available via Bloomberg]

We thought the Lexus HS250h would be a cynical rebadge of the Prius with a little more power. We were wrong. The HS was marginally unique enough, but then ToMoCo went and cynically reabdged it as a Toyota and called it the Sai. Sigh. It hasn’t been confirmed for the US yet, but if it is, there’s not much breathing room between the $22k Prius and the $26k Camry Hybrid. Nor would there be much reason left to buy an HS.