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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.

More photos of the 2014 Mazda3 sedan

Thanks to the folks at Top Gear Russia, we got an early glimpse of the 2014 Mazda3 sedan. Now, Mazda has released more images of its sleek new four-door, and if you like what the Japanese automaker has done with the five-door hatchback, you won't find anything to complain about with the sedan.
Many would argue that the Mazda3 sedan looks like a scaled-down version of the new Mazda6, and in many cases, that's true. But there are subtle details about the Mazda3 that we really like, starting with the larger grille that makes for a slightly more aggressive front end. On the profile, we like how the strong arching character lines that flow over the front and rear wheel wells intersect in the middle of the car and then taper off. At the rear, a short decklid rounds off a very clean design with taillamps that are indeed reminiscent of the larger Mazda6.
We can't yet confirm powertrain details (or any other specifications, really), but we fully expect the same 2.0-liter and 2.5-liter Skyactiv-G engines to carry over from the hatchback, as well as the six-speed automatic and manual transmissions.

Mazda Slovakia brochure reveals Skyactiv-X Euro power numbers

After driving a prototype of Mazda's Skyactiv-X engine in a Mazda3 in January last year, we wrote, "If you want to talk numbers, they're understandably fuzzy. The Skyactiv-X tune isn't final yet, so horsepower and torque figures are a moving target." They're no longer fuzzy in Slovakia, where a brochure for the new Mazda3 sells final figures as 181 metric horsepower and 222 Newton-meters, or 178 horsepower and 164 pound-feet. We don't know the Slovakian engine's displacement. If that Skyactiv-X is a 2.0-liter, it compares to our 2.0-liter Skyactive-G in the Mazda3 that makes 155 hp and 150 lb-ft, or the tuned Skyactiv-G in the 2019 Miata that makes 181 hp and 151 lb-ft. According to the spec sheet on the Slovakian Mazda site, their 2.0-liter Skyactiv-G in the CX-3 makes 148 hp and 152 lb-ft, and in their Mazda6 makes 162 hp and 155 lb-ft. According to the brochure, those numbers will rise to 164 hp and 157 lb-ft in the coming Mazda3. The Skyactiv-X numbers are in sight of what reps at Mazda in California gave us for output during our drive, which was closer to 190 hp and 180 lb-ft. Mazda said at the L.A. Auto Show last year that the Skyactiv-X would launch in markets with stricter emissions regulations first, so a small European market with tighter controls doesn't define what we get. Given our less restrictive environment, tuning for more power shouldn't be a moon shot. Doing so would put the Skyactiv-X in with the optional 2.5-liter four-cylinder in the U.S. Mazda3, which makes 184 hp and 185 lb-ft. The real test will be gas mileage; the purpose of the Skyactiv-X is to provide those figures in company with 20 to 30 percent better fuel economy than the Skyactiv-G. Autoweek characterized Mazda CEO Akira Marumoto's comments on the engine as, "The Skyactiv-X variant will be positioned as the higher grade. It will have the driving dynamics of the 2.5-liter gasoline setup but the fuel economy of a 1.5-liter diesel." We have questions about this strategy, but we'll have to see how the pricing works out. Since the 2.5-liter serves as the base engine on the 2019 Mazda3, buyers can expect a meaningful premium to get into a Skyactiv-X. Right now, there's a $1,495 surcharge to go from the current 2.0-liter Mazda3 hatch to the 2.5-liter.