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Mazda CEO says rotary not viable, so don't look for a new one

We have some very sad news to report, rotor-heads fans: Don't expect a new rotary-powered vehicle anytime soon. This comes straight from Masamichi Kogai, the CEO of Mazda, which is the only company to ever market a commercially successful rotary-powered automobile in the world. The issue, as it has pretty much always been, is environmental.
While the Wankel rotary engine does indeed make a lot of power in a small, lightweight package, it does so while burning lots of fuel and emitting lots of noxious gases into the atmosphere, at least when running on gasoline. And that means the rotary engine will likely only ever be able to power niche vehicles. And that, in turn, means that it is very difficult to turn a profit on vehicles with rotary engines, particularly for a small automaker like Mazda.
"It has to be a viable commercial proposition. If we are going to adopt it, it has to be a product that can generate at least sales of 100,000 units a year. We have to be able to achieve a profit," said Kogai in an interview with Automotive News. Mazda sold 56,203 RX-7 models in the United States (the automaker's biggest market) in 1986. Sales of the RX-8 peaked in 2004, its first full year on the market, with just 23,690 units.

2016 Mazda CX-3 First Drive

If there's any doubt in your mind about the importance of B-segment crossovers, consider this: our review of the 2016 Mazda CX-3 arrives on your screen less than 24 hours after our first test of the 2016 Honda HR-V. Both of these vehicles are hugely important entries for their respective automakers. And while they take a similar shape and will compete head to head, the truth is, they're very different products. The HR-V is a knockout because of its excellent packaging and added versatility over Honda's own Fit and Civic. It's a wholly competent product, and we imagine it'll be one of, if not the best-selling vehicle in the class. In terms of being desirable for customers, it checks all the necessary boxes: frugal, functional, efficient, and affordable. Mazda takes a similar approach, but focuses instead on its key strength of offering cars that are great to drive, and look damn good. What's more, the CX-3 won't have to share showroom space as the HR-V does with the Fit – the all-new Mazda2 isn't slated for the US right now. Instead, the new CUV will serve as an entry point into the brand. Because of this, Mazda is betting big on the CX-3. That all starts with a product that's appealing to the eye. Design director Derek Jenkins says Mazda "didn't want to do the funky route" with its compact CUV – a nudge to the Nissan Juke and Fiat 500X, right there. Instead, the CX-3 uses the Kodo design language that Mazda has perfected since its production debut on the CX-5 in 2012. Across the board, the company's products look incredible, and the CX-3 is right at home amongst Mazda's latest beauties. Notice the long hood with a flowing character line that runs over the front fender and down the body side, chiseled off at the end with tight rear proportions and a small overhang. Huge arches draw focus to the premium 18-inch wheels found on our Grand Touring CX-3, but swallow up the 16-inch rollers used on lesser models. The glass area is kept to a minimum, but visibility from inside is still quite good. Details like the LED accents in the head- and taillamps look premium and aggressive. From all angles, this is an attractive crossover. It's a bold, dynamic entry in a class filled with cutesy, oddball, and bland designs. Underneath the CX-3 is the Skyactiv chassis found in the new Mazda2. At 168.3 inches long, 69.6 inches wide, and 60.7 inches tall, the CX-3 is smaller than the Mazda3 in every dimension except height.

Mazda struggles to meet demand on rising sales

For Mazda there's good and not-so-good news on the heels of strong US sales in 2012: demand is high - especially for the Mazda3, Mazda6 and CX-5 - but supply is low, TheDetroitBureau.com reports. That's partly because all Mazda production happens in Japan, since it ended its alliance with Ford and pulled out of a joint venture with the blue oval building cars in suburban Detroit last year.
In 2012, Mazda sales here jumped 26.4 percent, but 2013 sales through August have just been keeping pace with the overall US auto industry, increasing at a rate of 6.8 percent. Mazda North American Operations director of marketing and communications Jeremy Barnes says that sales have slowed because the company is facing challenges delivering products here.