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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.

Mazda hard at work on Skyactiv 2 engine technology

As Mazda continues the current rollout of its still-new Skyactiv technology, the automaker is already looking at improving its family of engines for even better fuel economy and emissions reductions. Automotive News reports that with stricter fuel economy and emissions regulations planned for 2020 and 2025 in Europe, Mazda will likely release engines with next-generation Skyactiv 2 technology by the end of this decade, and Skyactiv 3 units just five years later.
The latter is expected to focus on improved engine cooling and lessening energy losses, but the big news in AN's report is that the next-gen Skyactiv 2 engines will use Homogeneous Charge Compression Ignition, or HCCI. This type of ignition is very similar to how a diesel engine operates (with high compression and using the compression stroke for fuel combustion rather than spark plugs), a method said to provide a cleaner and more efficient fuel burn - to the tune of a 30-percent improvement in fuel economy compared to current Skyactiv engines. Other automakers, including Hyundai, have already announced they are developing HCCI powerplants with similar technology and characteristics, so Mazda likely won't be a lone wolf here.
Equipped with HCCI technology, Mazda figures to be able to compete with larger automakers in terms of fuel economy and emissions without resorting to hybrid powertrains, continuously variable transmissions or automatics relying on more forward gears (eight or more) for optimal efficiency. Some of the challenges of HCCI, according to AN, include the need for better engine cooling, risk of misfire at high and low rpm and uneven engine performance based on fuel properties.

2020 Mazda CX-3 adds active safety features plus Apple CarPlay, Android Auto

The CX-3, Mazda's smallest crossover offering, shrinks its showroom footprint for 2020, as the brand makes room for the newly introduced CX-30 just above it in the lineup. The 2020 CX-3 is cut back from three trim levels to just one, although that single offering is bolstered with additional standard equipment including Apple CarPlay and Android Auto, which come to the CX-3 for the first time. Even more significantly, Mazda is adding as standard a batch of active-safety features that includes forward collision warning with automatic emergency braking and pedestrian detection, lane departure warning, adaptive cruise control with stop-and-go, and automatic high beams—formerly an option package costing $1,100. Blind-spot monitoring and rear cross-traffic alert were already standard and continue. The 2020 CX-3 also gains automatic climate control, a head-up display, rain-sensing wipers and LED exterior lighting. For all that, the 2020 CX-3's prices rise just $250 over the 2019 CX-3 figures. The starting figure for the 2020 Mazda CX-3 Sport is $21,685 with front-wheel drive or $23,085 with all-wheel drive (including $1,045 destination). The other news for the 2020 CX-3 is that the Touring and Grand Touring trims have been dropped. Which means that the features exclusive to those trims, such as leather seating surfaces, a power sunroof, heated seats, a heated steering wheel, and a power driver's seat, are no longer offered. Buyers seeking those niceties perhaps are now expected to step up to the CX-30 — although it's not a big leap, with the CX-30 starting at $22,945.