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Mazda's first profit in five years in sight due to weak yen

Automotive News reports Mazda is set to turn a profit for the first time in five years. The automaker is more dependent on exports from Japan than other automakers based in that country, and as a result, it has long suffered at the hands of a strong yen. But the currency has declined in value by some 16 percent over the past six months and Mazda's shares have tripled in value to their highest level since 2008. Contrast this situation to a year ago when Mazda printed 1.22 billion new shares to raise cash. The move was equivalent to 70 percent of the company's then-outstanding stock, and values tumbled to record lows as a result.
Now that the yen has fallen to a value of around 96 per dollar, Mazda operations in the US are more profitable and the company now projects it will earn around $279 million for the next fiscal year. Automotive News says a one yen change against the dollar can have a 9.1 percent impact on Mazda operating profit compared to 4.7 percent at Subaru parent Fuji Heavy Industries or 3.1 percent at Toyota. Those automakers better insulate themselves from currency fluctuations with overseas manufacturing facilities.

2016 Mazda CX-9 First Drive

Automotive enthusiasts tend to obsess over spec sheets. How else could we know which cars and trucks are the quickest in a straight line, hold the road with the greatest tenacity, or tow the biggest trailers? More succinctly, what ammunition would we have in the seemingly endless back-and-forth of Internet forums if it weren't for specifications? Mazda's engineers think they've found a better way. The 2016 CX-9 has less horsepower than its primary competitors. The only engine available is a turbocharged four-cylinder, hooked to a six-speed automatic. Drivers won't miss the 23 horsepower (or more, as we'll soon explain) lost in the changeover from 2015 to 2016, because Mazda applied its holistic Skyactiv approach to the largest vehicle it offers. That means less weight and, ultimately, more fun. Or so they say. Are they right? Yes. And no. Most of the time, in normal on-road driving conditions, the 2016 CX-9 is the most fun you can have with three rows. But the real-world tradeoff didn't go off completely without a hitch. Reasoning that real-world performance is more important than ultimate horsepower, Mazda specified a four-cylinder for its big, three-row SUV instead of a more traditional V6. Let's get those all-important specifications out of the way: All 2016 Mazda CX-9s are fitted with a 2.5-liter turbocharged four-cylinder with 250 horsepower and, impressively, 310 pound-feet of torque at just 2,000 rpm. Unless you decide to use 87 octane, in which case you'll be limited to 227 horsepower. Mazda doesn't think owners will actually notice the difference in power levels, so there's no Premium Fuel Recommended sticker on the back of the fuel door. Mazda utilized some clever turbo trickery to deliver a diesel-like torque curve from its gasoline-fueled engine, which makes the small-displacement powerplant feel lively at low engine speeds. The flipside is that the CX-9 runs out of breath as the needle swings across the upper reaches of the tach. While that simply wouldn't do for a sportscar like the MX-5, in the CX-9 it's not necessarily a deal breaker. One benefit to the downsized engine is that it doesn't guzzle fuel. The EPA rates the CX-9 at 22 miles per gallon in the city and 28 on the highway. Drop one mpg all around for the all-wheel-drive model. Those figures beat out all the CX-9's most natural competitors, including the Honda Pilot and Toyota Highlander. The turbo-four Ford Explorer matches the 28-mpg highway figure, but loses by three in the city.

Mazda recalls 374,500 vehicles because of Takata inflators

The Basics: Mazda will recall 374,519 examples of the 2003-2008 Mazda6 manufactured from May 29, 2002, to May 5, 2008; the 2006-2007 Mazdaspeed6 built from July 1, 2005, to June 29, 2007; and the 2004 RX-8 made from June 25, 2003, to June 30, 2003. The Problem: These vehicles contain front passenger airbag inflators from Takata that could rupture in a crash. If this happens, it could spray metal shrapnel at an occupant, which could seriously injure or even kill the person. Injuries/Deaths: The report from the National Highway Traffic Safety Administration didn't mention injuries or deaths, but Autoblog reached out to Mazda for confirmation. Takata's rupturing inflators allegedly have links to nine deaths globally and around 100 injuries. The Fix: Mazda dealers will replace the passenger side airbag with a new one. If You Own One: Mazda has not said when the replacements for these vehicles will begin. Experts believe that prolonged exposure to high humidity can cause the inflators' ammonium nitrate propellant to ignite too quickly in an accident. More Information: This recall is a nationwide expansion of Mazda's passenger's side airbag recall, which was previously limited to high-humidity regions. The population now includes 310,592 additional examples of the Mazda6, Mazda spokesperson Tamara Mlynarczyk tells Autoblog. The company discovered this new issue after Takata tested an inflator taken from a Mazda6, and it ruptured, according to NHTSA documents (PDF). The company already had a national safety campaign to fix the driver's side airbags in these vehicles. Related Video: RECALL Subject : Passenger Air Bag Inflator May Rupture Report Receipt Date: DEC 23, 2015 NHTSA Campaign Number: 15V869000 Component(s): AIR BAGS Potential Number of Units Affected: 374,519 All Products Associated with this Recall Vehicle Make Model Model Year(s) MAZDA MAZDA6 2003-2008 MAZDA MAZDASPEED6 2006-2007 MAZDA RX-8 2004 Details close Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2003-2008 Mazda6 vehicles manufactured May 29, 2002, to May 5, 2008, 2006-2007 Mazdaspeed6 vehicles manufactured July 1, 2005, to June 29, 2007, and a limited production of model year 2004 RX-8 vehicles manufactured June 25, 2003, to June 30, 2003. The inflators in the front passenger air bags are susceptible to rupture in the event of a crash necessitating the deployment of the front passenger air bag.