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Mazda's first-quarter profit slumps on weak sales in U.S. and China

TOKYO — Mazda reported a 79% drop in quarterly operating profit, falling significantly short of estimates, as it continues to struggle with declining U.S. and Chinese sales, while a strengthening yen also cut into its bottom line. Operating profit at JapanÂ’s No.5 automaker was 7.0 billion yen ($64 million) in the first quarter ended June, versus around 33 billion yen a year ago and less than half of an average forecast for 18.5 billion yen from analysts polled by Refinitiv. Mazda, however, reiterated its forecast for a 33% rise in operating profit to 110 billion yen in the year ending March. ThursdayÂ’s profit announcement marks MazdaÂ’s poorest first-quarter operating performance since the June 2012 quarter. The automaker has been struggling with falling demand for its cars over the past year or so, while it is also recovering from flood-related damage to its factories in Japan that led to a quarterly loss in the July quarter of 2018. The Nikkei business daily on Wednesday had reported that operating profit at the company would fall around 70% for the quarter due to lower sales in the United States. Mazda posted global sales of 353,000 units for the quarter, down 12% from a year ago. Its sales in the United States, its biggest market, fell 15% to 68,000 units, while in China, Mazda sold 54,000 vehicles, down 21% on the year. A trade war between the top two economies and slowing growth in China, the worldÂ’s biggest auto market, have prompted a broad-based sales downturn in the global auto sector. Automakers are grappling with easing demand for cars just as they must invest heavily in new technologies including electric cars, autonomous driving technologies and ride-sharing services to survive a major industry shift away from car ownership. Many of MazdaÂ’s rivals at home and abroad have been reporting disappointing quarterly results, with Nissan and Ford also announcing job cuts and possible plant closures earlier this month. The United States is a key source of revenue for Mazda, but it imports all its vehicles sold there, exposing it to a threatened hike in U.S. tariffs on imported cars from Japan. To limit its vulnerability to possible tariffs and currency fluctuations, Mazda is investing in a new plant in the U.S. state of Alabama, a joint project with Toyota.

Toyota, Honda, Nissan and more collaborating to increase fuel efficiency

Toyota, Honda, Mazda, Nissan, Subaru, Mitsubishi, Suzuki and Daihatsu have announced an alliance that will see a push to improve fuel economy from both gas-powered and diesel-powered engines by as much as 30 percent before the end of the decade.
The newly assembled Research Association of Automotive Internal Combustion Engines put the roughly $20-million project together, with the Japanese government committing to half the cost while the eight manufacturers will chip in the rest.
According to Automotive News, the automakers will team up and share basic research on internal-combustion engines in a bid to cut costs. Eventually, the results of the research will find its way into a production vehicle, although it's unclear just when we'll see the fruits of this partnership on the road.

2019 Mazda3 AWD First Drive Review | Unconventionally incredible

Here's some quick consumer advice: If you were considering buying one of those "premium" AWD compact sedans like the Audi A3 Quattro or the Mercedes CLA250 4Matic, don't you dare, because the 2019 Mazda3 AWD is a far better car than either. And you can have one for under $25,000. Not only does the little Mazda have an interior far nicer than any of its actual competitors, it also drives better than almost all of them, and it's prettier than any car at this segment has a right to be. (I'm talking about the sedan here, not the Mazda3 Hunchback Hatchback.) In short, if you need all-wheel drive but hate the idea of a wasteful, copycat SUV, or if you want a compact sedan and don't want your friends to think you're in a rental car, buy a new Mazda3. Got it? Good. That was easy. But for those of you who want to know how the Mazda3 AWD became so special, I need to give you some background information. Specifically, I need to tell you about my friend John, because we all have a friend like John, and Mazda is like John. John is a genius. Like, a certified, bona-fide human supercomputer. He understands more about most subjects than experts on those subjects. And he walks straight into a wall three times a day. Mazda and John have a lot in common. You might look at some of the things they do and think they're not paying attention. But if you take the time to dig deeper, you learn that there's amazing stuff going on beneath the surface. For example, you might wonder why the Mazda3 has two fuel gauges, one analog and the other a digital facsimile of that analog gauge, four inches apart. Or you may scratch your head that Mazda finally installed Apple CarPlay and Android Auto functionality, only to get rid of the touchscreen those systems are designed to use. You might wonder why a powertrain designed from stem to stern in the name of efficiency — we're talking cylinder-deactivation on a four-cylinder! — can't match the fuel economy of most of its more traditionally engineered competitors. And then you walk towards this car and momentarily forget all of this. The Mazda3 sedan oozes sex appeal. Open the door, get in, and you'll plunk yourself into a seat that's positioned like it's in a sports car: your hips are low, the steering wheel is squarely in front of you, and your legs aren't bunched against a firewall that's a foot too close.