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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Mazda builds 4-millionth Mazda3

To say that the Mazda3 is a vital product for Mazda would be one heck of an understatement. In fact, the model line accounts for about 30 percent of the manufacturer's sales. Fortunately for Mazda, they're selling well.
These days, the Japanese automaker is building the Mazda3 (known domestically as the Axela) in Japan, China, Thailand and, as of last month, in Mexico. The company's expanded global production capacity has helped Mazda reach four million units of the Mazda3 sold around the world since the first model was introduced over ten and a half years ago.
Over the course of that decade since its introduction in June 2003, Mazda has gone through three generations of Mazda3, the newest model benefiting from the company's Skyactiv technology and even encompassing a hybrid model in the Japanese Domestic Market.

Mazda's mission for the 2017 CX-5: Smooth out the NVH

NVH: the dreaded noise, vibration, and harshness. According to current Mazda CX-5 owners, as well as those who decided against becoming owners, NVH was its biggest area of need. Traveling in the CX-5 was just too loud, so Mazda's engineers made sure that the redesigned, second-generation model would offer its occupants a more serene environment in keeping with quieter competitors. To reduce wind noise, more aerodynamic parts were strategically placed about the exterior, while extra efforts were made to reduce low-frequency noises on coarse surfaces. According to Mazda engineer Dave Coleman, the new CX-5 is nearly as quiet as its platform-mate, the 2016 CX-9. Actually, to be very accurate, all Mazdas apart from the CX-3 and 2 (aka Toyota iA) now share that platform. Another reason compact SUV buyers opted to skip the CX-5 was its comparatively firm ride. So, while the CX-5 remains "head and shoulders above the segment for handling," according to Coleman, the ride was improved. One of the primary ways of achieving that was the adoption of rigid steering mounts, which allowed for the suspension to be less stiff without a loss in handling precision. View 12 Photos Of course, handling remains a key reason to buy the CX-5, and it's improved for 2017 courtesy of an increase in body rigidity, the adoption of liquid-filled front suspension bushings, and Mazda's G-Vectoring Control. Under the hood, every CX-5 now comes standard with the 2.5-liter Skyactiv-G four-cylinder, with output figures to be announced at a later date. The 2.0-liter, previously standard on the Sport trim, has been exiled to other markets. However, finally making its appearance on these shores is Mazda's 2.2-liter Skyactiv-D diesel engine. Although Mazda did its darndest to make it certifiable in the United States without a urea injection system, it was ultimately unable to do so without resorting to an ultra-sluggish throttle response that engineers deemed was anathema to what was expected of a Mazda. Therefore, the diesel-powered CX-5 will indeed have a DEF tank that will need to be periodically topped off to not run afoul of emissions regulations. Otherwise, the 2017 CX-5 is very much an evolution of the SUV it replaces. Customers thought its size was just right, so its passenger and cargo area remain in the same ballpark.