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Mazda leads Consumer Reports' latest Brand Report Card Rankings

The latest automaker brand report cards from Consumer Reports are in, and there are quite a few changes for 2021. At the very top of the charts sits Mazda, up three spots over last year, followed by BMW and Subaru to round out the top three. It's interesting to note that mainstream brands (non-luxury in CR-speak) don't seem to be at a disadvantage in CR's rankings, with five of the top 10 spots. In addition to Mazda in first and Subaru in third, Honda, Toyota, Chrysler, and Buick were the other high-ranking non-luxury marques. The ratings are derived from "a combination of predicted reliability, and owner satisfaction based on member surveys, and CR’s hands-on analysis" and also includes safety features and crash test scores.  At the very bottom of the list sit Mitsubishi, Land Rover and Alfa Romeo. "Our brand rankings don't just look at how models perform on our test track, but the broad picture of vehicle quality," said Jake Fisher, Senior Director of Automotive Testing at Consumer Reports. "Fortunately, consumers will find they have many options that are safe, enjoyable, and reasonably priced." The biggest jumps in the brand report card rankings come from Chrysler, Buick and Honda, which each moved up five spots compared to last year's rankings. The news wasn't nearly as good for Lincoln, which fell an alarming 15 spots this year, Genesis, which fell 13 spots, or Kia, which fell 10 spots. Related Video:

Mazda plans to launch an EV in 2020, plug-in hybrid by 2022

Thanks to an interview Automotive News Europe conducted with Mazda president and CEO Akira Marumoto, we have more insight on Mazda's plans to lower its vehicle emissions in Europe. This will undoubtedly bring changes to the U.S. lineup, too, but The Continent sees the first fruits in part because Mazda is well over the European Union's fleet CO2 emissions target for 2021 of 95 g/km. In response to how Mazda plans to achieve the necessary reduction, Marumoto said the carmaker will launch its first EV in 2020 and have a plug-in hybrid on the road in 2021 or 2022. First, some clarification on the emissions numbers and timeline. The 95g/km figure is based on the New European Driving Cycle (NEDC) emissions schedule being phased out next year; the AN piece cites JATO Dynamics findings that Mazda Europe's fleet CO2 average is 135.2 g/km. The new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) schedule comes into full effect in 2020, the fleet CO2 target under that methodology translating to 114.9 g/km. The rules dictate that 90 percent of an automaker's range needs to meet the cap number by the end of 2020, the rest of the lineup must come into compliance by the end of 2021. Failure means enormous fines. Industry analyst IHS Markit estimates "average fines for those not complying could reach ˆ624 ($707) per vehicle at the end of 2020, with a further ˆ190 ($215) increase in 2021." The penalties quickly grow so large that Fiat will reportedly pay Tesla hundreds of millions of euros to pool their fleets and avoid an even larger bill. Mazda's most popular vehicle in Europe is the CX-5 with CO2 emissions ranging from 128 g/km to 150 g/km. On top of that, for a small automaker, the size of potential fines has material effect on the R&D budgets necessary to develop the technologies that will lower emissions, and whatever EV Mazda launches in 2020 needs to sway legions of customers into purchases to be of practical use. This will be challenging. A line in the IHS Markit summary about the industry in general states, "Once in 2021 and subject to full WLTP regulatory monitoring, only a seismic shift (over the baseline) in consumer demand for BEV ('Electric-Plug-In') and PHEV ('Hybrid-Full Plug-In) will result in the full mitigation of EU28 fleet level excess emissions premiums." Mazda hooked up with Toyota and Denso in 2017 on a joint venture called EV Common Architecture Spirit Co Ltd to develop EV technology.

Mazda's first profit in five years in sight due to weak yen

Automotive News reports Mazda is set to turn a profit for the first time in five years. The automaker is more dependent on exports from Japan than other automakers based in that country, and as a result, it has long suffered at the hands of a strong yen. But the currency has declined in value by some 16 percent over the past six months and Mazda's shares have tripled in value to their highest level since 2008. Contrast this situation to a year ago when Mazda printed 1.22 billion new shares to raise cash. The move was equivalent to 70 percent of the company's then-outstanding stock, and values tumbled to record lows as a result.
Now that the yen has fallen to a value of around 96 per dollar, Mazda operations in the US are more profitable and the company now projects it will earn around $279 million for the next fiscal year. Automotive News says a one yen change against the dollar can have a 9.1 percent impact on Mazda operating profit compared to 4.7 percent at Subaru parent Fuji Heavy Industries or 3.1 percent at Toyota. Those automakers better insulate themselves from currency fluctuations with overseas manufacturing facilities.