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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 Skyactiv-X Review | The revolution begins with a squeeze-bang

The matte black Skyactiv-X prototype looks like a rough Mazda3, perhaps reconstructed after a bad wreck by an over-enthusiastic owner of a spot welder and lots of gaffers' tape. Ribbed ducts poke out of the dash sending two breaths of conditioned air to no one in particular. Even its revolutionary engine, the thing we're here to experience, is entombed in a massive, nondescript cover to mask its unseemly noises. It's a wild, strange way to meet a very unconventional vehicle that promises diesel-like fuel economy, a wide torque band, and an exotic method for burning less gas than ever before. It takes a few hours for Mazda's engineers to explain the fundamental principles of operation. For more detail, read our Skyactiv-X Spark Controlled Compression Ignition explainer, but here's a very brief overview. Skyactiv-X marries some traditional gasoline engine characteristics with a novel form of compression ignition called SPCCI. The key for Skyactiv-X is to use very high compression in the cylinder and an extremely lean fuel-air mixture. Squeezed right to the cusp of getting hot enough to blow up all on its own (which is very hard to predict), a squirt of extra gas and a spark interject to cross that compression-ignition threshold in a controlled and predictable manner. See the animation below: That takes a few essential components to get just right. One is a massive amount of computer processing power and some pressure sensors in the individual cylinders, because the ambient conditions change how and when these things happen. Skyactiv-X uses a clutched supercharger to pump in additional air when needed to nail the mixture precisely, and high-pressure injectors to get the low ratios of fuel to disperse properly in the chamber. And since it operates like a conventional gasoline engine sometimes, it uses valve timing to lower the very high compression ratio so it doesn't reach combustion ignition in that mode. In practice, the Skyactiv-X runs in compression ignition mode most of the time. In practical terms, that means it drives like a torquey gasoline Skyactiv engine. The torque curve is broad and flat — diesel-like in that respect. That also means it can get away with using a six-speed transmission and a lower final drive for better response. There's enough grunt and economy together that Mazda can let the engine spin faster — at 60 mph, it's running at roughly 1,000 more RPM than a similar gas engine, with greater efficiency.

2020 Mazda CX-30 First Drive | The middle way

JULIAN, Calif. — An Aveo wanders in the lane ahead, its gas flap open and waving in the 30-mph slipstream as it creeps along some of the best roads in all of Southern California as swiftly as a retreating glacier. The 2020 Mazda CX-30Â’s speedometer needle quivers and then falls. The longing for a passing zone becomes unbearable. Even with a merely adequate 186 horsepower and a standard automatic, I canÂ’t wait to smoke this Aveo as I arc into another corner, tap brakes to transfer weight, and scoot into the next. And then a sort of calm washes over, provoking the slightest smile. The smile is a realization that, short of a few performance models from the German brands, most compact crossovers donÂ’t beg for this sort of action. The CX-30 is not most crossovers – itÂ’s built on the bones of the dynamically overachieving Mazda3, making it legitimately rewarding to drive. Think of it more as a car that happens to be marketed as a crossover. The careful attention to vehicle dynamics means it doesnÂ’t wallow like you might expect a jacked-up 3 might. What it feels like is a 3 variant, not an entirely different vehicle — analogous to the Subaru CrosstrekÂ’s relationship to the Impreza, albeit with greater visual differentiation and a much more sophisticated driving experience. ThatÂ’s a very, very good thing indeed – and letÂ’s take a moment to review the virtues of the 3 to explain why. ThereÂ’s nothing in its class that nails its brief so well. The interior looks exceptionally premium in higher trim grades, it drives better than anything in its class, and the sheetmetal “oozes sex appeal,” as contributing writer Jason Cammisa put it – although less oozing is present in the awkward hatchback. ItÂ’s even available with all-wheel drive. However, I respectfully disagree that the engine is refined – the Skyactiv-G 2.5-liter inline-four, a carryover from the last generation and shared between the 3 and CX-30, is harsh and clattery. In both vehicles it gets the job done. That 186 hp is backed up with 186 pound-feet of torque, channeled exclusively through a six-speed automatic in the CX-30. Front- or all-wheel drive is available in every CX-30 trim. And while thereÂ’s roughly a 200-lb weight penalty over the 3, the CX-30 manages to feel perky, not porky. Nor is the fuel economy hit as much as you might imagine.