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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.

2020 Mazda CX-5 adds torque to the turbo engine, gets more expensive

The 2020 Mazda CX-5 is getting a little more desirable in the new model year. It’s also slightly more expensive. Most of the benefits are realized with the 2.5-liter turbocharged four-cylinder. This engine gets a small boost in torque, going from 310 pound-feet to 320 pound-feet. Horsepower stays the same at 250 horses, and the max power is still made using 93 octane fuel. We saw a similar torque gain in the 2020 CX-9. Mazda says it also added a new “Engine Harmonics Enhancer” that “tunes to the engine with a much more refined and powerful sound.” WeÂ’re guessing the turbocharged engine is going to sound just a hair better in 2020. When equipped with the turbocharged engine and all-wheel drive, the CX-5 also gets an off-road traction assist feature. Similar to the CX-9Â’s system, Mazda says “when the diagonal wheels lose traction, off-road traction assist will stop reducing the engine torque and increase the brake force on the wheels without traction.”  Mazda says all CX-5s will also take advantage of improved NVH, making the CX-5 feel a bit more premium and isolated from the road. Every CX-5 will also be equipped with MazdaÂ’s suite of i-Activsense safety features as standard in 2020, as well. This means adaptive cruise control and lane-keeping assist are both standard features now. As Mazda tries its best to move into the premium space, itÂ’s changed all the fonts on the badging and displays on the car. Although, Mazda neglected to include any photos of the new look, so weÂ’ll wait to judge on that front. The premium look and feel comes with a slightly higher price than 2019. A base Sport is $740 more expensive than last year, coming in at $26,135 after the $1,045 destination charge. The most luxurious Signature trim is just a touch more expensive than last year (by $165) at $38,100. What Mazda hasnÂ’t included in its 2020 rundown is the Skyactiv-D diesel option. WeÂ’ve reached out to Mazda to see if we can determine its fate in 2020 and will update this story upon hearing back. Update: Mazda responded to our request for comment. Since the 2019 diesel variant was on a different release schedule than the rest of the 2019 CX-5 lineup, the company isn't talking 2020 diesel yet. The company is treating it as a "future product," therefore it's not commenting on it.  We can only speculate as to what that means for the diesel CX-5, so we'll wait on official information from Mazda whenever it may come.

Why we can't have better headlights here in the U.S.

It wouldn't be a European auto show if we weren't teased with at least one mainstream vehicle we can't have here. At the Geneva Motor Show last week, the small but vocal contingent of shooting-brake buffs lamented that the Mazda6 wagon won't be coming to our shores, although they can take comfort in the fact that the vehicle won't get the torquey 250-horsepower 2.5-liter turbocharged gasoline engine we'll get here. Mercedes-Benz also announced a new headlight technology in Geneva that likely won't be available here anytime soon. It's just the latest in a long line of innovative and potentially lifesaving front-lighting solutions that the federal government doesn't allow in this country due to outdated standards — and a current lack of leadership at the U.S. Department of Transportation. Mercedes-Benz's new Digital Light system that debuted in Geneva uses a computer chip to activate more than a million micro-reflectors to better illuminate the road ahead. The Digital Light headlamps works with the vehicle's cameras, sensors and navigation mapping to adjust lighting for the given location and situation and to detect other road users. The Digital Light technology also serves as an extended head-up display of sorts by projecting symbols on the pavement ahead to alert drivers to, say, slippery conditions or pedestrians in the road. And it can even project lines on the road in a construction zone or through tight curves to show the driver the correct path. Digital Light will be available on Mercedes-Maybach vehicles later this year, although like any technology it's bound to trickle down to less expensive vehicles. That is, if we ever get it here in the U.S. Audi, a leader in automotive lighting, has repeatedly run into snags trying to bring state-of-the-art car headlights to the U.S. The German luxury automaker's recently introduced matrix laser headlight system, which performs many of the same trick as Mercedes-Benz's Digital Light, also isn't legal on U.S. roads. And five years after the introduction of its matrix-beam LED lighting, which illuminates more of the road without blinding oncoming motorists with brights by simultaneously operating high and low beams, Audi still can't bring that technology to the U.S. either.