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Mazda's first-quarter profit slumps on weak sales in U.S. and China

TOKYO — Mazda reported a 79% drop in quarterly operating profit, falling significantly short of estimates, as it continues to struggle with declining U.S. and Chinese sales, while a strengthening yen also cut into its bottom line. Operating profit at JapanÂ’s No.5 automaker was 7.0 billion yen ($64 million) in the first quarter ended June, versus around 33 billion yen a year ago and less than half of an average forecast for 18.5 billion yen from analysts polled by Refinitiv. Mazda, however, reiterated its forecast for a 33% rise in operating profit to 110 billion yen in the year ending March. ThursdayÂ’s profit announcement marks MazdaÂ’s poorest first-quarter operating performance since the June 2012 quarter. The automaker has been struggling with falling demand for its cars over the past year or so, while it is also recovering from flood-related damage to its factories in Japan that led to a quarterly loss in the July quarter of 2018. The Nikkei business daily on Wednesday had reported that operating profit at the company would fall around 70% for the quarter due to lower sales in the United States. Mazda posted global sales of 353,000 units for the quarter, down 12% from a year ago. Its sales in the United States, its biggest market, fell 15% to 68,000 units, while in China, Mazda sold 54,000 vehicles, down 21% on the year. A trade war between the top two economies and slowing growth in China, the worldÂ’s biggest auto market, have prompted a broad-based sales downturn in the global auto sector. Automakers are grappling with easing demand for cars just as they must invest heavily in new technologies including electric cars, autonomous driving technologies and ride-sharing services to survive a major industry shift away from car ownership. Many of MazdaÂ’s rivals at home and abroad have been reporting disappointing quarterly results, with Nissan and Ford also announcing job cuts and possible plant closures earlier this month. The United States is a key source of revenue for Mazda, but it imports all its vehicles sold there, exposing it to a threatened hike in U.S. tariffs on imported cars from Japan. To limit its vulnerability to possible tariffs and currency fluctuations, Mazda is investing in a new plant in the U.S. state of Alabama, a joint project with Toyota.

Mazda recalls Takata airbags in B-Series

The Basics: Mazda will recall 19,000 examples of the 2004–2006 B-Series pickup. The Problem: The pickups contain Takata-sourced driver's side airbag inflators that could rupture in a crash. The spray of metal shrapnel could injure or even kill occupants. Injuries/Deaths: None reported in the Mazda pickups. However, a rupturing airbag inflator killed the driver in a Ford Ranger, which is identical to the B-Series. The Fix: Mazda will replace the driver's side inflator. If You Own One: Mazda plans to notify affected owners as soon as dealers have the replacement parts. More Information: Mazda already recalled 442,266 driver's side Takata inflators and 416,475 of them on the passenger's side. The affected models included the 2003-2008 Mazda6, 2004-2006 B-Series, 2006-2007 Mazdaspeed6, 2004-2008 RX-8, and some examples of the 2004 MPV. Ford also issued an expanded safety campaign for 391,394 examples of the 2004-2006 Ranger. Related Video: Mazda Announces Recall On B-Series Vehicles With Takata Driver-Side Frontal Airbag Inflators WASHINGTON, DC (February 1, 2016) – Mazda has decided to recall all 2004–2006 model year B-Series Trucks with Takata driver-side frontal air bag inflators. Approximately 19,000 vehicles are affected in the U.S., Puerto Rico and Saipan. There have been no reports of accidents or injuries on the Mazda-badged vehicles subject to this recall. Model Year 2007-2009 B-Series Trucks with Takata passenger-side frontal air bag inflators are part of a previous recall. Approximately 19,000 vehicles are affected in the U.S., Puerto Rico and Saipan. Below is a summary of Mazda models with a passenger- and/or driver-side front Takata air bag inflators currently being recalled. Total Number of Driver's frontal air bag inflator - 442,266 Total Number of Passenger's frontal air bag inflator - 416,475 2003-2008 Mazda6 2004-2006 B-Series 2006-2007 Mazdaspeed6 2004-2008 RX-8 (All Driver-side / Certain Passenger-side) 2004 MPV (Certain Vins only. Click here to see if your vehicle is included.) Mazda North American Operations is headquartered in Irvine, Calif., and oversees the sales, marketing, parts and customer service support of Mazda vehicles in the United States and Mexico through more than 700 dealers. Operations in Mexico are managed by Mazda Motor de Mexico in Mexico City.

Mazda6 Skyactiv-D racecar gets first win at Road Atlanta

Mazda has a long motorsports history, and one that is peppered with fascinating cars. The latest chapter in Mazda's racing story has just been written, as Joel Miller and Andrew Carbonell have driven the Visit Florida Racing Mazda6 Skyactiv-D to the car's first ever victory at the Rolex Grand-Am GX race at Road Atlanta. The win marks the first ever for Mazda's diesel-burning, production-car based Skyactiv-D racer, and the first win for a diesel-powered car in a Grand-Am event.
In fact, it was a particularly good day for the Mazda Motorsports team, as a Mazda6 also picked up the third finishing spot at Road Atlanta. Director of Mazda Motorsports, John M. Doonan, said of the racecar, "We've always said that the best street cars make the best racecars, and, with more than half of the components in the race engine being shared with the street engine, this program is a solid proof-point."
SpeedSource Engineering, which helped to build the Mazda6 racer, was greatly heartened by the car's performance in just it's fourth-ever race. Owner Sylvain Tremblay called the victory, "a tribute to the thousands of hours of hard work over many months," continuing, "The normal plan with a new car is to spend the first year in development, the second year seeking race wins, and challenging for a championship in year three. We are already at our year-two status after four races. We can't wait to get to the Belle Isle course in Detroit for round five."