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Why Mazda’s Skyactiv-X compression-ignition engine is a smart hedge bet

Mazda has cracked the code on a compression-ignition engine, called Skyactiv-X (which utilizes SCCI, or Spark Controlled Compression Ignition). That's a neat engineering accomplishment, sure, but why is the tiny company investing big dollars in fancy tech that's frustrated the much larger companies who've investigated it? In this case, Mazda is peering into a crystal ball to consider how best to flow with a few troubling tides. One is the premature handwringing about the death of the internal combustion engine, another is Europe's swing away from diesel engines. Skyactiv-X seems, at this juncture, a hedge bet against both aspects. EV infrastructure lags massively behind our petroleum infrastructure — no shock there. Mazda claims the tech will net 20-30 percent gains in fuel efficiency over its current gasoline engines and about matching its diesel engine. And that's without any onboard hybrid tech, so that staves off the inevitable necessity to fully adopt electrification for a while — this is assuming that, at some point, it won't be practical to sell a non-hybrid or non-EV. At what date that happens is open to debate, but as I said above, technology like this kicks that decision point down the road a bit. Mazda is here translating research dollars into time, allowing its engine factories a few more years of probably profitable production of internal-combustion engines before retooling, and before somebody needs to pour a massive amount of money into a broad EV charging infrastructure to replace gas stations. None of this is happening fast enough for a wholesale transition to EVs anytime soon. So, that's one bet hedged. The next is Europe's declining interest in diesel engines for mainly health reasons. Just about a week ago, The New York Times posted an excellent primer on this issue, which is somewhat controversial in Europe. Germany's auto industry, a huge portion of its economy, is heavily invested in diesel tech and seriously opposed to proposals in Britain and France to eliminate the technology, which creates unhealthy diesel particulate emissions. The German industry is hoping Band-Aids like pollution-reducing measures will help them, but after a massive and widespread emission cheating scandal, its credibility is at a nadir. It seems like consumers have sensed which way the wind is blowing, and it has hurt sales. The NYT reports that diesel sales in Germany alone — remember, bastion and originator of diesel technology — are down 13 percent.

Automakers are offering more fuel-efficient cars than ever

Even with gas prices near their lowest point in more than a decade, Americans are still concerned about the fuel economy of their cars. More than 4 in 5 consumers say gas mileage will be an important consideration the next time they go shopping for a vehicle, according to the results of a new survey conducted by the Consumer Federation of America, which were released Monday. That's no surprise, says Jack Gillis, director of public affairs for the nonprofit organization. "Consumers have had a long history with volatile gas prices," he said. Though motorists have saved approximately $12 billion this year at the pump compared to 2015, according to AAA, car shoppers expect gas prices to rise again in the future. The average respondent to CFA's survey predicted a price of $3.50 per gallon within the next five years, a figure in line with projections made by the US Energy Information Administration. When those consumers visit dealerships, they'll have plenty of options. More models than ever are achieving 30 miles per gallon or more, according to CFA's annual analysis released in conjunction with the survey, and 15 of 16 major car companies improved their fuel efficiency on their 2016 model-year offerings. Only Ford backslid year over year, per the report. Researchers say American consumers are now enjoying the widest range of fuel-efficient options ever offered, in every vehicle class. Of 1,094 models on sale in 2016, 13.4 percent achieved more than 30 MPGs, an improvement from 11.7 percent in 2015. At the same time, the percentage of gas guzzlers offered for sale has declined. The percentage of vehicles on the market that get 16 miles per gallon or less has fallen from 6.1 percent to 4 percent, says CFA. "Even if you're in the market for a large pickup or SUV, you'd have to go out of your way to find a true gas guzzler," Gillis said. ""Consumers have had a long history with volatile gas prices." – Jack Gillis These results, the CFA suggests, indicate federal standards that prod automakers to invest in fuel-efficient technology are having the desired effect. Manufacturers are keeping pace with the requirements of the Corporate Average Fuel Economy standards, which mandate carmakers achieve a standard of 52.5 miles per gallon in testing, equivalent to about 40 miles per gallon in on-road performance, by 2025. CFA's report singled out Mazda as setting an exemplary standard.

Mazda and Lexus crowned with KBB 5-Year Cost To Own awards

We report on a lot of awards, some of which are given out based on more solid criteria than others. This one, the Kelley Blue Book 5-Year Cost to Own awards, seems like one that new car shoppers should pay attention to.
The cost of a car goes far beyond what you pay for the actual metal, leather and rubber at the point of purchase. Fuel, insurance, maintenance and repair costs, and the cost of fees from the state and financing will all weigh on your wallet while you own the car. That's not even taking into account the biggest cost: depreciation, or the amount of money you lose based on what your car is worth years from now versus the day you bought it.
KBB tracks these sorts of things, and they've compiled a list of winners for 2013 models. On the brand level, Mazda and Lexus earn the 5-Year Cost to Own award for having the lowest overall projected five-year totals (though, curiously, we note that Mazda and Lexus each had only one segment winner). There are lots of winners for all the various segments, so we'll just pick out a few surprising ones to share and you can view the rest here.