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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.

2014 Mazda3 breaks cover early, in Euro-spec at least

We're set to get a closer look at the US-spec 2014 Mazda3 later today, but AutoExpress has the first peek at the machine's European cousin (after initial leaks reportedly came from a Czech outlet). The photos show a compact that's taken plenty of design inspiration from its older sister, the Mazda6. That's excellent news, as the larger car's dynamic front fascia, accentuated fender arches and long nose translate well to the Mazda3. Inside, there are are new and improved material choices, and the longer wheelbase means occupants get to enjoy more room than before. There's also a larger trunk with 12.3 cubic feet of cargo capacity.
Buyers in the EU can get their hands on a 1.5-liter Skyactiv-G gasoline engine with 99 horsepower, though the old 2.0-liter four-cylinder will still be available in either 118 hp or 163 hp configuration. A 2.2-liter diesel tops out the engine choices.
The 2014 Mazda3 is lighter than its predecessor and boasts disk brakes and a multi-link rear suspension on every trim. That means this thing should be fun to shuffle around. Stay tuned for details on the US-spec variant later today, including a lot more images of the good-looking hatch.

Mazda engineer wants new rotary to be turbocharged

Hope springs eternal for Mazda to revive the high-revving Wankel engine for a new sports car, and the company keeps feeding that thirst with hints that it could happen. To make the possibility even more tantalizing, Mazda drivetrain and powertrain assistant manager Tetsushi Marutani tells Motoring that he wants the updated mill to pack a turbocharger. "Personally, I think that a rotary with some turbo or compressor would be good," Marutani said to Motoring. "Because a rotary, in my opinion, they require more [torque at] low speed, low down torque. So if we have some small compressor or turbo it would help." Mazda hasn't sold a rotary-powered model since the RX-8 and hasn't had a turbocharged one since the third-generation RX-7. However, the recent RX-Vision concept (above) at least hinted at a possible Wankel revival, and Mazda officials confirmed that its engineers continued to develop the engine since the RX-8's demise. The RX-Vision used a next-gen rotary called the Skyactiv-R, but Mazda didn't officially confirm any details about it. Rumors suggested the engine had a two-rotor layout with a total displacement of 1.6 liters. A two-stage electric turbo and hybrid powertrain would allegedly boost the total output of around 450 horsepower. The electric assistance could also counter the Wankel's lack of torque at low revs and poor fuel economy. Those rumored specs sound fantastic, but we still take the rotary's return with a grain of salt. Mazda CEO Masamichi Kogai is adamant that it's not worth the company's limited resources to develop a niche sports coupe instead of better selling vehicles. Related Video: