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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Mazda boss says no to new-generation Mazda3 hot hatch

Mazda offered a hot, turbocharged version of the Mazda3 model during the car's first two generations, badging it either the MPS or the Mazdaspeed 3 depending on the market. The third generation car didn't get a hot-hatch variant, and now Mazda is saying there won't be one for the freshly revealed fourth-gen car, either. Mazda's new global boss, Akira Marumoto, told Australian motor journalists at the Los Angeles show that there won't be an MPS in the cards. As Drive quotes Marumoto: "Mazda is a small player, and if [you are asking whether] that segment has a high particular priority for Mazda, my answer would be no. Therefore we not planning for MPS in the future." Marumoto stated that Mazda would rather establish itself as a genuine premium carmaker comparable to its European rivals, stressing that this would be achievable through quality, comfort and refinement improvements in the existing lineup rather than expanding into other segments. As well as nixing the Mazda3 MPS, Marumoto also said that despite repeated queries, the function of the 2015 Tokyo Motor Show car RX Vision was to preview the evolution of the Kodo design language and not to herald the arrival of a new rotary sportscar. So, it's time to cue the Mazda Kills Rotary Sports Car Again headlines. Marumoto also told journalists that there won't be an EV sports car or a completely driverless car from Mazda either: He said he prefers the smell of gasoline to full electric power, and that Mazda will never build a car without a steering wheel. For Mazda, autonomous capabilities would serve to bring the car to a safe halt in the case of an incapacitated driver, instead of doing the driving. However — and there is a strong "however" — Mazda did tell us that the turbocharged 2.5-liter engine does fit into the new 3. Mazda representatives said that the header on the naturally aspirated version is big enough as it is, making it easy to shoehorn in the 250-horsepower turbo version without issue. They also said that the company is closely monitoring buyer demand, which originally led to the turbo being available on the Mazda6 and CX-5, along with justifying the introduction of all-wheel-drive in the new Mazda3. So: if there is a case for it, the turbo might come — just don't call it a Mazdaspeed 3, or view it as an overt hot hatch. But the shoe fits.

2021 Mazda3 to gain a turbocharged engine, finally, probably

Buckle up, Mazda fans. The Mazda3 turbo might really be happening, says a report from Jalopnik. Some details from Mazda’s dealership extranet system observed by Jalopnik suggest weÂ’ll see a 2021 Mazda3 turbo in both sedan and hatchback form. We donÂ’t have eyes on the documents ourselves, but the report says both the sedan and hatchback versions will be all-wheel-drive only with no option for front-wheel drive. In addition to that, it looks like the turbo models will be exclusively automatic, as theyÂ’re both only listed as “6A” in MazdaÂ’s system. Sorry to break the hearts of those who were hoping for a manual turbo. The hatchback manual with the naturally aspirated 2.5-liter from the modelÂ’s first two years appears to be sticking around for a third, in case you were worried. There is one minor mystery that's a possible glimmer of hope for someone wanting more performance, though. The report says that a “MAZDA3 HB PP TURBO” is listed in the docs. Our hearts are yearning for the PP to stand for Performance Package, but it probably stands for “Premium Package.” ThatÂ’s the name of MazdaÂ’s highest trim Mazda3 right now, and itÂ’d make sense to offer the turbo engine on the upmarket model. The last we heard on this front was from a report published over a year ago. It suggested MazdaÂ’s 2.5-liter turbocharged four-cylinder as a possible drop-in. That motor makes 250 horsepower and 310 pound-feet of torque on premium fuel and would be a big upgrade to the 186 horsepower and 186 pound-feet of torque made by the naturally aspirated 2.5-liter under the hood now. Without a manual, the obvious transmission would be MazdaÂ’s traditional six-speed automatic. ItÂ’s a solid transmission for cars like the Mazda6 and CX-5, but itÂ’s not meant for sports cars, as we recently found in the automatic Miata RF. So no, this Mazda3 turbo wonÂ’t be a Mazdaspeed. It would simply be a quicker Mazda3, and while we can still pine for a true Mazdaspeed, this will be a welcome addition to the lineup. ThereÂ’s even more ancillary news in the report, too. The docs that Jalopnik saw say weÂ’ll be getting a Mazda3 with a 2.0-liter four-cylinder in 2021. That one has to be the Skyactiv-X engine weÂ’ve been patiently waiting for. It has already launched in Europe, but was delayed in the U.S. Those 100th Anniversary Edition Mazdas get a callout, too. The Mazda3 version of that is reportedly set to be equipped with the turbo engine, making that particular model even more enticing.