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Mazda braces for record annual operating loss as car sales slump

TOKYO — Mazda Motor Corp forecast a record annual operating loss on Friday as the Japanese automaker continues to be pummeled by falling vehicle sales due to the COVID-19 pandemic. Japan's No. 5 automaker anticipates a 40 billion yen ($383.5 million) loss for the year to March, joining a growing number of automakers, including Ford and Nissan, which expect annual losses after the virus shuttered vehicle plants and kept customers away from car dealerships. Even before the coronavirus outbreak, the maker of the CX-5 SUV crossover and the Mazda3 sedan had been suffering from sliding profits for the past two years as slim new vehicle offerings has knocked sales in the United States and China, its two biggest markets. In the year to March, Mazda anticipates an 8% fall in global vehicle sales to 1.3 million units, its lowest in seven years, which will likely result in an operating loss. The automaker said it would forgo paying a dividend this year. Ahead of Friday's announcement, the company's shares fell 7%, as the consensus forecast in a Refinitiv poll of 19 analysts was for a 46 billion yen annual loss. Mazda posted an operating loss of 45.3 billion yen for the first quarter, its weakest in 11 years, due to a 31% drop in vehicle sales between April and June. In the April-June quarter, sales fell to 244,000 units, largely due to a drop in demand at home and in Europe. Sales in North America, Mazda's biggest market, fell 19% in the same period. But China was a bright spot, as sales rose 13% during the quarter as car demand has returned to the world's largest auto market, having recovered relatively quickly from the virus.

Mazda officially hints MX-30 could get a rotary range-extender

Mazda recently penned a paean to itself celebrating 100 years in business. This, naturally, meant the document also served as a love letter to the rotary engine, since, "The joy of driving, lightweight design and the rotary engine [are] three elements that define Mazda’s DNA." One of those elements has been AWOL for eight years, since the end of RX-8 production. After years of rumor feverish enough to impress Slenderman, two years ago Mazda announced it was prepping a rotary range-extender engine for a model to debut in 2020. Here we are in the anticipated year, and we still don't know anything else about that vehicle — or perhaps we do. When Mazda debuted the MX-30 battery-electric crossover in Tokyo last year, it bore an e-SkyActive powertrain with a 35.5-kWh battery sending current to an e-motor on the front axle producing 141 horsepower and 195 pound-feet of torque. With a range of around 130 miles on the European cycle, even though the crossover was meant for markets like Europe and Japan, almost everyone chimed, "This would be perfect for that range-extender engine." The automaker has hinted at that very thing for its centenary celebration. In a paragraph touching on alt-fuel RX-7 variants, the Mazda press department wrote, "Later, the company developed a prototype Mazda2 EV with a small single-rotor engine used as a range extender. A similar system could find its way onto the Mazda MX-30, a brand new battery electric crossover SUV arriving at dealerships this year." The word "could" didn't make the leap from the printed page into the video translation of the presser, a Mazda video on "The Dream Engine" ending with footage of the MX-30 rolling under the caption, "Mazda MX-30 with rotary range extender." When asked, Mazda's head of R&D in Europe explained the battery size and resultant range with wheel-to-well considerations that factored energy input and emissions output from making the battery to exchanging the battery after 100,000 miles of driving. Since the carmaker doesn't deem the pure-electric MX-30 suited to the U.S., the question bubbling beneath the latest news is whether this revised model with more range could make it here. Given a suitably sized fuel tank that could power the little people mover beyond 150 miles on U.S. roads, and a fair price, we suspect there'd be a great deal of interest. Now, Mazda, about that rotary-powered RX-7 ... Related Video:    

Weekly Recap: Diesel scandal continues to fuel VW's woes

Volkswagen's woes continued this week when it was delisted from the Dow Jones Sustainability Index and stripped of awards. Senators are also lining up to advocate for criminal and civil action against the automaker, and its consumer reputation is in tatters. Put simply, it's been another rough period for VW. Despite this, the company eked out a sales gain of less than one percent in September, though that was well behind the overall market's performance. Sister brand Audi, which sells a diesel A3, was less affected, posting a 16-percent gain in September. Revelations that Volkswagen rigged millions of diesel-powered cars around the world didn't surface until September 18, so the full sales impact of the ongoing scandal won't likely be felt until October. Meanwhile, VW's image continues to take a beating, and an AutoPacific survey found only one in 14 vehicle owners have a positive opinion of the company. Before the scandal broke, three-quarters of respondents had a positive view of VW. The survey also found 64 percent don't trust Volkswagen, though the same number believe other companies are or may also be using cheating devices to pass emissions tests. "The reputation of diesels has been severely damaged, at least for the short term," Ed Kim, AutoPacific's vice president of industry analysis, said in a statement. Despite the lingering malaise, experts believe VW will recover, just as Toyota and General Motors eventually emerged from their own high-profile controversies. "Consumers have proven through numerous recalls that they are resilient and quickly return to their buying habits," Kim said. OTHER NEWS & NOTES Mazda to reveal sports car concept in Tokyo Mazda will bring a curvy sports car concept to the Tokyo Motor Show in October. The automaker is being especially coy with the details, only releasing the dark teaser shot that you see to the right and a cryptic statement that suggests the concept "condense[s] Mazda's entire history of sports-car development into a single model." Immediately, speculation abounded this is an RX-7 and RX-8 successor, though Mazda didn't specify what engine the concept will have. Reportedly, the company is still working on rotary engines. Mazda will have a Cosmo Sport 110S on its stand in Tokyo, which pioneered rotary technology in 1967. Read into that what you will. The Rock pitches Ford service Dwayne Johnson, also known as The Rock, is the new frontman for Ford service.