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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

2020 Mazda3 Review & Buying Guide | The connoisseur's choice

Completely redesigned last year, the 2020 Mazda3 pretty much carries over, continuing to be the connoisseur's choice for a compact car. For starters, its elegant sedan and unique hatchback body styles are considerably more stylish than expected for this segment. Park it next to a similarly priced Honda Civic or Toyota Corolla and people are likely to think you paid far more than you did. The same goes for the cabin, which is functional yet stylishly minimalist (if a bit cramped). Then there's the driving experience, which continues to delight those who value sharp responses and a driver-focused character. The switch to a less sophisticated rear suspension for this latest generation has dulled some of its corner-taking capability at the limit, but that's a low-percentile complaint. The bigger dynamic beef is perhaps that Mazda doesn't offer a hotter version in the vein of the Civic Si or VW GTI. Yet, that falls under the category of "wishes" not "problems," which the 2020 Mazda3 has scarcely few. Perhaps it won't be for everyone in the market for a compact car, but everyone should at least consider it.   What's new for 2020? After being completely redesigned last year, updates are light for 2020. The base trim level now comes standard with the Mazda i-Activsense suite of accident avoidance tech and driver aids that continue to be standard on every other trim level. 2019 Mazda3 AWD View 33 Photos What's the interior and in-car technology like? The interior quite simply makes you go "wow." A Honda Civic or Toyota Corolla, which are actually quite nice, look and feel like they should cost substantially less – especially when comparing top trim levels. Whatever trim level of 3 youÂ’re considering, however, the key to its wow factor is how the MazdaÂ’s design removes visual clutter by reducing switchgear and effectively hiding air vents and door handles. It just looks special. It's also functional. The steering wheel, which looks sensational, is an absolute treat to hold. There's considerable center console space and Mazda's tech interface, which had lagged behind its competition due to key usability issues, has been cleaned up. The dashtop screen is large and easy to see. The knob that controls it is large, not unlike BMW's iDrive, and ergonomically placed on the center console. It's not a touchscreen, though, as Mazda engineers determined that hunting for touch-operating icons can be distracting.

Why Mazda did so well and Volvo so poorly in Consumer Reports survey

The poor performances of Tesla and all three domestic automakers got the headlines in Consumer Reports magazine's latest reliability survey, but there were other results that caught our interest. Tiny Mazda notched the biggest gain among the 29 brands included in this year's list, leap-frogging nine spots to No. 3. Buick, which was in the top 10 last year, fell 11 spots to No. 19, the biggest decline of any brand. And then there's Volvo, a brand often vaunted for its quality and reliability, dropping six spots to dead last. What gives? For starters, all three brands benefited or suffered in large part due to their relatively small portfolio of vehicles. So when raves or complaints rolled in for even one particular model, as was often the case, it weighed heavily on the entire brand. That's especially true when it involves a relatively high-volume, hot-selling model such as the Buick Enclave (more on that in a moment). Mazda fared as well as it did despite the CX-3 losing Consumer Reports' influential "recommended" status due to problems with its climate system, including leaks from the condenser and refrigerant unit that triggered a service bulletin from the automaker in late 2016. Deputy auto editor Jon Linkov said that scratch didn't hurt the overall brand, since the CX-9 crossover and MX-5 Miata both jumped up to replace it on CR's list of newly recommended vehicles, thanks to several back fixes Mazda made to both models. For Buick, the redesigned Enclave SUV earned a "Much Worse Than Average" rating after owners reported problems with the new nine-speed automatic transmission it shares with the Chevrolet Traverse as well as some issues with the climate system. There were issues with rough shifting, plus complaints about the torque converter that necessitated fixes to the computer or outright replacement. "Again, similar stuff that we saw with the Traverse: both first-year vehicles, similar powertrains," LInkov said. He said all-new vehicles or redesigns typically fare poorly in CR's reliability survey due to issues that are hard to suss out before vehicles go into everyday use by consumers. The top-selling Encore and Envision fared well, Linkov said, but were outdone by the Enclave's problematic transmission components. The Enclave was Buick's second best-selling model through September at 35,227 units. Then there is Volvo, about which there is one word to sum up its woes: infotainment.