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Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive

Mazda could electrify the next Miata, is trying to figure out how

The next Mazda Miata is at the embryonic stage of development. The men and women in charge of the project are debating whether to electrify the roadster, or if it's better to keep it true to its roots. The Miata is not a high-volume model in any market, so it doesn't need a plug to help Mazda comply with looming emissions regulations. The company explained it's not a matter of compliance; it's about how the definition of a sports car and the expectations of motorists could change in the 2020s. "The preferences of people who enjoy driving sports cars might be changing, so we need to think about what direction society is going in. We want to look at the best powertrain to keep the vehicle lightweight, but because of the diversifying requirements and preferences, we need to explore various options," Ikuo Maeda, Mazda's global design director, in an interview with Autocar. Adding any degree of electrification to the Miata beyond a relatively basic mild-hybrid system is easier said than done. An unusually low weight and a compact footprint defined the original model introduced in 1989, and these attributes continue to characterize the fourth-generation car (pictured) sold in 2019. Electrification requires batteries, batteries add weight and require space, and Mazda doesn't want to end up with a 3,000-pound Miata, or one that's the size of a Mercedes-Benz S-Class Convertible. Keeping its chassis balanced is a delicate task, too. Overcoming this challenge is not impossible, however, and batteries are expected to become lighter and smaller during the 2020s. The next-generation Miata isn't expected out until the middle of the 2020s, so Mazda has time to figure out whether it should go hybrid, arrive as an electric car, or carry on with a rev-happy, naturally-aspirated four-cylinder engine. Maeda stressed a final decision on the matter hasn't been made yet. "I don't have the answer right now, but we need to make a vehicle that people can own without worrying that they are not being eco-friendly," he concluded.

Goodwood Festival of Speed celebrating Mazda this year [w/video]

Mazda gets to wear the crown and sash as the doubly honored marque for the Goodwood Festival of Speed this year. The Japanese brand will be the focus of the Central Feature, the sculpture that sits outside Goodwood House, and its race cars will be the focus on the lawn, where there will be at least one representative from "every era of Mazda's motor sport achievement." The theme for this year's event is "Flat-out and fearless: racing on the edge." The showcase, of course, will be the 700-horsepower, rotary-engined 787B that won the 24 Hours of Le Mans in 1991. It will run up the 1.6-mile Hillclimb while a Mazda challenger from the World Rally Championship runs the Forest Rally Stage, joining Andros Trophy ice racing and sportscar racing Mazdas. The festival happens from June 25-28 this year, and there's a press release with more details down below the video recap from 2014 and Mazda 787B Le Mans lap. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Le Mans-winning 787B to headline fantastic Mazda line-up at FoS 2015 Feb 18, 2015 -- Mazda is the only Japanese manufacturer to have won the world's most prestigious motor race – the Le Mans 24 Hours – and the victorious rotary-engined 787B, with its distinctive sound, is certain to be a crowd favourite as it winds its way up Goodwood's iconic 1.16-mile Hillclimb at the Festival of Speed this year. The 787B is part of a fabulous collection of racing and road machines that will be brought to the Festival by Mazda, in the year in which the company is also being honoured by the iconic Central Feature outside Goodwood House. Further motor sport success has been achieved in touring cars, the World Rally Championship, Andros Trophy ice racing and sportscar competition in the USA – in which Mazda's pioneering SKYACTIV-D turbodiesel technology is breaking new ground currently. In fact, every era of Mazda's motor sport achievement will be marked by some incredible competition cars both on the Hillclimb and the Forest Rally Stage as we celebrate the FoS theme 'Flat-out and fearless; racing on the edge'. The Moving Motor Show on June 25, will also showcase many of the key models from Mazda's current range.