2012 Mazda Cx9 on 2040-cars

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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.

Autoblog Minute: VW Q3 financial woes, 2015 Tokyo Motor Show

Consumer Reports pulls its Tesla recommendation, the U.S. Copyright Office offers a ruling affecting car owners, VW gets hit hard with third-quarter losses, and lots of exciting news from Tokyo. Autoblog senior editor Greg Migliore reports on this edition of Autoblog Minute Weekly Recap. Show full video transcript text [00:00:00] Consumer Reports pulls its Tesla recommendation, the U.S. copyright office offers a ruling that affects car owners and gear heads, VW gets hit hard with third-quarter losses, and lots of exciting news from Tokyo. I'm senior editor Greg Migliore and this is your Autoblog Minute Weekly Recap. After a week away testing vehicles for Autoblog's Tech of the Year award, we're back in the office to recap the week in automotive news. [00:00:30] One of the things you might have missed was Consumer Reports pulling its recommendation of Tesla's Model S sedan. The blemish for Tesla comes after a tally of reviews from customer surveys. The most common problem areas for the Model S as cited by survey takers included: the drivetrain, power equipment, charging equipment, body and sunroof squeaks, rattles, and leaks. So lots of stuff. Though they could not ignore a score of "worse-than-average", Consumer Reports still [00:01:00] highlighted the fact that the Model S was "the best performing car" they've ever tested. Telsa CEO Elon Musk took to social media to defend his sedans saying: "Consumer Reports reliability survey includes a lot of early production cars. Already addressed in new cars." And, "Tesla gets top rating of any company in service. Most important, CR says 97% of owners expect their next car to be a Tesla (the acid test)." In Financial news, Volkswagen took a hit and reported an operating loss of [00:01:30] $3.84 billion. This is the first such loss for VW in 15 years. Toyota reclaimed the crown as the world's largest automaker as well. It's important that it's not all doom and gloom for VW though in Q3. Sales revenues were up and the company's automotive division boasts $30 billion dollars in liquid assets. It's a sizable war chest that will no doubt come in handy, as the company has yet to feel the full brunt of the diesel emissions scandal. Good news for gear heads. The US copyright office [00:02:00] ruled in favor of mechanics and car owners by granting an exception to existing copyright law. The law was originally meant to prevent software pirating and bootlegging of Hollywood movies.

Mazda3 five-door vs. Mazda CX-3

As a talking point, it won't rival North Korea, world hunger or Mideast peace, but the ongoing tug between car and crossover continues to resonate in the hallways of Autoblog HQ. And it might also generate some discussion on Mazda showrooms, where the Mazda3 five-door and Mazda's CX-3 crossover are parked within a few feet of each other. Not only do they enjoy proximity on the showroom, but they enjoy/suffer (your choice, depending on POV) pricing proximity on the window sticker. The Mazda3 five-door is the more mature model of the two, having been introduced to a world market in fall 2003. With a commonsense footprint enclosed by almost-organic, upscale sheetmetal, the Mazda3 – especially in 5-door form – punches well above its weight in the still-nascent hatchback category. With a redesign (third-generation) introduced in 2014, along with a more recent refresh, the newest sedan and hatchback merge Mazda's KODO design philosophy with a responsive platform, available 2.5-liter drivetrain and a comfortable – if not expansive – interior. What the Mazda3 5-door (photo at left) does not give you is the crossover's high hip point, despite having ground clearance almost identical to the CX-3 subcompact crossover. And while the stated passenger volume of the Mazda3 and CX-3 is almost identical, those cubes are arranged differently; the Mazda3 offers an interior package more linear, while the CX-3 is more upright. Mazda's subcompact CX-3 (photo at top) is a more recent entry, having been developed from the Mazda2 architecture and hitting the street two years ago. It sits below Mazda's CX-9 and CX-5 in the Mazda pecking order. And it is tiny, on a wheelbase of just 101 inches and offering an overall length of just 168 inches. It is seven inches shorter than the Mazda3, with a wheelbase five inches shorter. The net effect is a more compressed environment for passengers, along with the very real challenge of fitting something inside – such as a bicycle – even when that something has its front wheel removed. In the city, I like the CX-3's compactness, and relatively unrestricted visibility when compared to the Mazda3's overall length and lower seating. But when both are equipped with their six-speed automatics, and the Mazda3 is spec'd with its available 2.5 liter DOHC four, there's almost no comparison in their performance. With that spec the hatchback has Mazda's well-hyped zoom, while the CX-3 makes do with nothing but a 4-cylinder boom.