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Subaru, Mazda profits dip; both blame exchange rates

While some larger automakers took a beating on Q4 earnings, some of Japan's smaller operations managed to keep their heads just above water despite currency issues and slumping sales industry-wide. Subaru, which capped off its 11th consecutive year of U.S. sales increases, reported a 42-percent drop in operating profit in the final quarter of 2019; Mazda, which operates on an even smaller scale, saw a 76-percent drop.  Per Automotive News, both companies faced challenges apart from navigating currency exchanges.  Subaru Subaru's 2019 was marred by warranty costs stemming from repairs on high-volume models, including the Impreza and Crosstrek. Despite the drop in profit, company revenues only slid 2.3 percent. The company also says that it has managed to curtail incentive spending, largely thanks to replacement models that needed less help moving out of showrooms.  America remained a bright spot, with 2019 sales volumes increasing by nearly 3 percent over 2018. Subaru is hoping that figure will increase to 4.0 percent in 2020. Subaru's wholesale deliveries also increased in western Europe, but dropped precipitously (28 percent) in the company's home market.  Mazda The smaller Mazda faced similar challenges, but its 2019 lacked some of Subaru's more dramatic bright spots. Worldwide shipments of new vehicles dropped by 8 percent, aiding a revenue decline of 5 percent. Mazda's vehicles remained profitable on a per-unit basis, but only just.  Mazda has been undergoing aggressive cost-cutting measures, but even those were no match for reduced volumes and unattractive currency exchange rates.  Despite these challenges, both companies are keeping their earnings outlooks unchanged. The fourth quarter of 2019 represented the third quarter in both companies' fiscal years, which will end in March.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. 2020 Subaru WRX STI S209 | POV Drive

New Mazda3 looks just like Mazda Kai concept in spy photos

Just a couple of weeks before the official reveal, one of our spy photographers caught the next-generation Mazda3 out testing in minimal camouflage. The car was a hatchback model, testing alongside a VW Golf and Audi A3, and was only wrapped in thin vinyl. As a result, we can clearly see that the new compact Mazda hatchback looks just like the stunning Kai concept from last year's Tokyo Motor Show. The car features effectively the same nose and profile of the concept. The main grille is larger than the current model, and it leans forward aggressively. The windshield is very low and sleek. The rear portion of the car is dominated by the very thick C-pillar that leans far forward, augmenting the car's athletic stance. The window sill at the rear kicks up sharply, and the rear window doesn't wrap around or bulge out, giving the car a very tight, taut shape. It's not just the outside of the 3 we get to see. We get a good look at the interior. It also looks very much like the Kai's interior, with the focus being the driver. The gauges are flanked by air vents that blend into the shape of the instrument binnacle. The rest of the dashboard is left as uncluttered as possible. The climate controls and vents all reside in the same long horizontal plane. The infotainment screen, which appears to be touch-sensitive based on one spy photo, is canted toward the driver. Mazda's rotary controller does return, as seen in the center console. Also in the center console is the manual shift knob, which we expect, or at least hope, will continue to be available in the U.S. We'll have answers to all our questions about the Mazda3 at the end of this month when it makes its debut at the L.A. Auto Show. We'll also see the sedan version of the car. The powertrain is the biggest mystery at the moment. Mazda showed the Kai with the Skyactiv-X engine, Mazda's spark-controlled compression-ignition gasoline engine. We've driven a development car with the engine, and Mazda seemed to intend the new Mazda3 to use it, but we're not sure if the engine will be ready for the car's launch. If not the Skyactiv-X engine, or perhaps in addition to, Mazda will probably use versions of its current engines. It could carry-over the naturally aspirated 2.0-liter and 2.5-liter four-cylinders currently used. The latter may use the cylinder deactivation now used on the Mazda6 and CX-5. We would love to see the company finally offer the turbocharged 2.5-liter engine from the Mazda6, CX-9, and now CX-5.

Mazda patents show rotary engine for range-extended EV

Two years ago, Mazda introduced a fascinating range-extended electric car called the Mazda2 RE Range-Extender. It took an electric Mazda2, and dropped in an itty-bitty 330cc rotary engine. It wasn't the rotary-powered sports car we had hoped for, but it seemed like a unique way to keep the quirky engine alive and kicking. But not long after the car's reveal, it seemed to disappear. Now the basic idea has resurfaced with a few modern updates in a couple of US patents. The first patent is pretty straightforward and describes a range-extended EV similar to the BMW i3. At the front is an electric motor driving the front wheels. At the back is an internal combustion engine that powers an electric generator. In the middle is a lithium-ion battery for storing and delivering electricity. It's the same set-up as that Mazda2. The second patent is for an engine start-and-stop system, but specifically for rotary engines. The system is designed to shut off a rotary engine when not needed, much as modern piston engines do. It also stops the rotor in a position that closes the intake port to ensure no fuel or exhaust emissions slip out through the intake tract. This is necessary since there are no valves in a rotary, and air and exhaust come through ports that are "opened" and "closed" by the rotor itself. The patent also describes the possibility of firing a spark plug after the fuel has been cut to eliminate any leftover fuel emissions. This system would theoretically improve a rotary engine's fuel economy and emissions significantly, which would be a boon as those are two of the rotary's major weaknesses. The rotary-engine patent also includes the same range-extended powertrain drawing as the first patent. It's there as a description of a possible application. And in such an application, where the rotary wouldn't have to run all the time, the system could take advantage of the rotary's inherent strengths. Weight can be kept low thanks to the engine's small dimensions, which should help in keeping the car sprightly and efficient. Rotaries are renowned for smoothness, too, so it shouldn't need too much refining and sound deadening, the latter of which adds more weight. The small size would also help with packaging, leaving more space for people, cargo, or possibly batteries. And since it has been patented, the company may be looking to bring the system to market.