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Mazda taps Americas head as CEO to raise game in its biggest market

TOKYO — Mazda has named the head of its Americas operations as its next president and CEO after its current chief steps down in June, as Japan's fifth-largest automaker seeks to boost profitability in North America, its biggest market. The company said on Friday that Masamichi Kogai will step down and be replaced by current vice president Akira Marumoto, who now oversees operations in the Americas. The changes are effective June 26 after Mazda's annual shareholders' meeting. Mazda, which has global annual sales of around 1.6 million vehicles, has enjoyed a run of rising vehicle sales, expanding in markets particularly in North America, which accounts for nearly 30 percent of total sales. But as one of Japan's smaller automakers and a tiny player globally, it faces growing competition in the United States, where market growth has slowed, and where the company's profitability has sagged due to higher discounting and slowing demand for sedans. The maker of the MX-5 Miata roadster and the reputed Skyactiv gasoline engines also faces higher costs to stay competitive in an industry which is being disrupted by new technologies, including self-driving cars and electric vehicles. Marumoto, a 38-year company veteran with a background in engineering who described himself as having a "strict" work ethic and admitted to being "short-tempered" at times, previously led Mazda's corporate planning and product strategy divisions before heading its Americas operations. He said that growing sales and improving profitability in the North American market would be his biggest priority, along with expanding the company's brand image as an innovative car maker. "Given the rapid changes occurring in the auto industry at the moment it's often asked whether a small company like us will be OK," Marumoto, 60, told reporters at a briefing in Tokyo. "But before we even consider this we need to show our strengths, and what makes us different if we want to grow our brand." Kogai, who became Mazda's president and CEO in 2013, will be following the footsteps of his two immediate predecessors who also held the top job for five years each. He will still be with the automaker and become its chairman, the company said. Earlier this year, Mazda announced that it would invest in a new, $1.6 billion plant in the U.S. state of Alabama as a joint venture with Toyota.

Half of Chinese car buyers won't shop Japanese over hard feelings

The hard feelings between China and Japan is no real secret. Besides modern-day disputes, the two countries have had a long-running enmity that dates back to well before the atrocities of World War II. All things considered, then, it shouldn't be a shock that half of Chinese car buyers wouldn't consider a Japanese car. This survey, conducted by Bernstein Research, found that 51 percent of 40,000 Chinese consumers wouldn't even consider a Japanese car – which, again, isn't really surprising, when you consider stories like this. According to Bernstein, the most troubling thing is the location of these sentiments – smaller, growing cities where the population is going to need sets of wheels. We imagine it wouldn't be as big of an issue in traffic-clogged Shanghai or Beijing, but these small cities are going to become a major focus for automakers. "Nationalistic feelings are an impediment. [Japanese] premium brands will struggle," analyst Max Warburton wrote in a research note, according to The Wall Street Journal. Things will improve for Japanese makes, although China will remain a challenge, with Warburton writing, "the one thing that comes out most clearly is that most Chinese really want a German car. While we expect Japanese brands to continue to recover market share this year, ultimately the market will belong to the Germans." There are a few other insights from the study. According to WSJ, Japanese brands are viewed better than Korean brands, and they're seen as more comfortable than the offerings from Germany or the US, despite the fact that everyone in China apparently wants a German car. This is a tough position for the Japanese makes to be in, as there's really not a lot they can do to win favor with Chinese buyers. It will be interesting to see how this plays out, particularly as the importance of the PRC continues to increase year after year. News Source: The Wall Street Journal - sub. req.Image Credit: Kazuhiro Nogi / AFP / Getty Images Honda Mazda Nissan Toyota Car Buying

Sorry, rotary fans, Mazda's RX Vision probably won't happen

Mazda is doing a lot of things the right way in this age of beige-ness. It just crammed a turbocharged inline-four into the improved CX-9, a bold move unto itself, and one that should also be heartening for Mazdaspeed fans. Wouldn't that engine make for a swell Mazdaspeed3 or Mazdaspeed6? There's a reasonable ray of hope there, but not necessarily a guarantee. The RX Vision, though, is a pipe dream. Mazda is smart to keep the rotary dream alive. It's smart to keep developing it in back rooms and to keep the idea on the public's mind. Credit where credit's due: Mazda has solved some of the stickiest issues the rotary engine has, through savvy engineering and perseverance. We've seen promising patent filings for the Skyactiv-R engine, which is supposed to be found in the RX Vision concept. Mazda uses every opportunity to remind us that development is continuing and that the company would love to bring a rotary-powered sportscar to production. I believe it. But the RX Vision is just a design study. And there are some harsh realities about rotary engine emissions and fuel economy standards that are difficult for modern piston engines to achieve without expensive componentry. Emissions and fuel economy are both bugbears of the rotary, in case you've forgotten. And that explains Mazda's interest in running rotaries on hydrogen, but down that road lie infrastructure challenges as daunting as making a gasoline-powered rotary burn as clean as one of Mazda's Skyactiv piston engines. All this is meant to put Mazda's recent comments to Top Gear in context. Mazda's design director, Kevin Rice, spoke to TG at the Concorso d'Eleganza Villa D'Este, and was waving Mazda's rotary flag quite enthusiastically. "In the back rooms at Mazda, we're still developing it," Rice said, "and when the world's ready to buy another rotary, we'll be ready to provide it." I'd like that to be a comforting statement, but given the realities of fuel economy and emissions regulations and Mazda's position in the market, it seems like a hollow platitude. "When the world's ready" is just another way of saying "when we solve the fundamental issues with this engine layout, and there's an unambiguous market study that shows we can build these cars and make a profit, we'll consider it." That seems like a lot of "ifs". Perhaps Mazda does have a clean-burning, efficient, cheap-to-produce rotary running on an engine dyno in Hiroshima, and it's prepping an RX-9 for the next auto show.