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2019 Mazda CX-5 Signature AWD diesel unveiled in New York

NEW YORK —It seems like we've been waiting forever, but the wait is finally over. Mazda has finally launched a diesel version of the CX-5 for the U.S. market, unveiled at the 2019 New York International Auto Show. Specifically, the 2.2-liter Skyactiv-D turbo-diesel engine will be offered in the higher-end CX-5 Signature AWD, part of what Mazda calls its "path to premium," as the company continues to set its sights on some of the more expensive competition. The Skyactiv-D 2.2 makes use of a sequential twin turbocharger that employs a smaller turbocharger first at low rpm for quick throttle response, after which a valve opens to spool up a larger turbocharger at higher rpm. Mazda says this provides "smooth and linear response from low to high engine speeds, and greatly increases low- and high-end torque." Mazda estimates the output of the engine to be 168 horsepower at 4,000 rpm and 290 pound-feet of torque from a low 2,000 rpm. The engine has a rev limit of 5,500 rpm. As of right now, it's only in the all-wheel-drive version and only in the Signature trim level. As such, it gets a ho-hum EPA fuel economy rating of 27 mpg city, 30 highway and 28 combined. We previously saw fuel economy figures for a potential front-drive diesel CX-5 getting just slightly better fuel economy, at 28 city, 31 highway and 29 combined, but no word yet on if and when that'll be made available. The mediocre diesel fuel economy, while expected given the midstream shift from one emissions strategy to another, is particularly disappointing in context. The non-turbo CX-5 AWD, which makes 187 hp and 186 lb-ft, gets 24 city and 30 highway for 26 combined mpg – just 3 mpg less in the city and 2 mpg less overall than the diesel. The much more powerful CX-5 Turbo, which makes 250 hp and 310 lb-ft, gets 22 city, 27 highway, and 24 combined. Mazda is taking pre-orders for the 2019 CX-5 Signature AWD with Skyactiv-D 2.2 starting now, at an MSRP of $42,045, including $1,045 in destination fees. We have to point out that this is a sizable jump in MSRP from a CX-5 Signature AWD with the more powerful turbo engine, which lists for $38,235 – a $3,810 difference in fact. Given the lackluster fuel economy and considerable decrease in power and torque, we're concerned that the diesel may be a tough sell at this sort of premium.

Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

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.