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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.

Recharge Wrap-up: First EV to attempt Dakar Rally, Mazda makes bioplastic parts

Zap and Jonway Auto brought their Urbee EV and their new Falcon A-380 SUV to the Peru Motor Show in Lima. Jonway sells its SUV and minivan in Lima through Dai-Ichi Motors, which displayed the cars at the show. According to the companies, their cars "received tremendous interest from the public," including private citizens as well as groups who would use the EVs for security guard service or campus use. Read more in the press release below. California is the US leader when it comes to EVs. In 2013, California had 70,000 battery electric and 104,000 plug-in hybrids. The state boasts almost half of the country's electric vehicles, thanks largely to state and local EV incentives that go beyond the federal tax rebate. California also leads the way in legislation, and nine other states have adopted California's ZEV mandate. Washington, Maryland, Georgia and DC also have their own EV incentives, while some utility companies also offer benefits for EV owners in other states. Still, EV sales have only made up about 0.7 percent of new vehicle sales in 2014. Read more at the US Energy Information Administration website. Toyota will be using landfill gas to help power its Kentucky manufacturing facility. Beginning in 2015, Toyota's Georgetown assembly plant will use electricity converted from landfill-sourced methane gas from Waste Services of the Bluegrass. It will provide enough energy to produce 10,000 vehicles each year. Plus it diverts methane - a greenhouse gas - from entering the atmosphere and helps improve the local air quality. Learn more in the video or Toyota's press release below. Mazda has developed a plant-derived bioplastic for making exterior and interior parts. The dyed plastic doesn't require painting, and it reduces petroleum consumption and carbon emissions in the manufacturing process. The bioplastic will be used for interior parts in the all-new MX-5 before being put into use on the exterior of future vehicles. Mazda will display prototype parts at the Eco-Products 2014 exhibit in Tokyo. Read more in the press release below. Acciona will enter the first-ever zero-emissions vehicle (pictured) to compete in the Dakar Rally. The vehicle uses an electric motor and lithium ion batteries, as well as solar panels to power telemetry and security systems. The Dakar Rally will take place from January 4 through 17 through Argentina, Chile and Bolivia. See Acciona's Dakar EV in the video and read more in the press release below.

2019 Mazda MX-5 Miata First Drive Review | More power is the icing on top

SAN DIEGO — When Mazda announced that the 2019 Mazda MX-5 Miata was getting a serious increase in power, I was both excited and nervous. I was excited because more power is always exciting, and it was no insubstantial increase. At 181 horsepower, it's the most powerful production Miata ever offered, beating out turbocharged Mazdaspeed Miata's 178 horsepower. Plus it has more revs to play with. But what had me worried was whether this power would mess up the friendly, playful character of the Miata. The 155-horsepower 2.0-liter engine is just about perfect, almost universally loved by the Autoblog staff and other reviewers, with good midrange torque and short gearing that always made it feel quick in nearly every rev range. It felt like the right amount of power for the chassis, too. There was just enough to get it loose without working too hard, but it wouldn't spin you around unexpectedly. I could imagine a couple of ways the new engine could affect that sweet balance, too. A bit too much power could risk some of the Miata's accessibility and predictability. It might become more serious and less fun-loving. I also feared that in pursuit of a higher redline and more horsepower, the low-end of the rev range might become painfully slow. Honda owners know this feeling whenever their VTEC-equipped screamers drop out of the aggressive cam profile, and the Toyota 86 and BRZ suffer from an awful lack of torque right in the mid-range that doesn't recover until nearly redline. All of this was on my mind when the assembled reviewers were briefed by Mazda engineers about the car. It started out like most presentations, with a brief rundown of the goals of the car and what Mazda has done with the model so far. Then came a chart showing the power curves of the NC, current ND, and the 2019 model, and my fear of a loss of low-end grunt dissipated. The amount of power and torque over engine speed is nearly identical between the old and new ND Miatas right up to around 4,500 rpm. And then from there, the 2019 continues making more power all the way to its 181-horse peak at 7,000 rpm, 500 rpm higher than the previous model's redline. This was a good sign. Mazda managed to get these gains with no sacrifices through many small upgrades. The throttle body is wider with a slimmer throttle plate, the intake manifold has longer runners and dual paths, and the intake ports are larger.