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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

Mazda boss says no to new-generation Mazda3 hot hatch

Mazda offered a hot, turbocharged version of the Mazda3 model during the car's first two generations, badging it either the MPS or the Mazdaspeed 3 depending on the market. The third generation car didn't get a hot-hatch variant, and now Mazda is saying there won't be one for the freshly revealed fourth-gen car, either. Mazda's new global boss, Akira Marumoto, told Australian motor journalists at the Los Angeles show that there won't be an MPS in the cards. As Drive quotes Marumoto: "Mazda is a small player, and if [you are asking whether] that segment has a high particular priority for Mazda, my answer would be no. Therefore we not planning for MPS in the future." Marumoto stated that Mazda would rather establish itself as a genuine premium carmaker comparable to its European rivals, stressing that this would be achievable through quality, comfort and refinement improvements in the existing lineup rather than expanding into other segments. As well as nixing the Mazda3 MPS, Marumoto also said that despite repeated queries, the function of the 2015 Tokyo Motor Show car RX Vision was to preview the evolution of the Kodo design language and not to herald the arrival of a new rotary sportscar. So, it's time to cue the Mazda Kills Rotary Sports Car Again headlines. Marumoto also told journalists that there won't be an EV sports car or a completely driverless car from Mazda either: He said he prefers the smell of gasoline to full electric power, and that Mazda will never build a car without a steering wheel. For Mazda, autonomous capabilities would serve to bring the car to a safe halt in the case of an incapacitated driver, instead of doing the driving. However — and there is a strong "however" — Mazda did tell us that the turbocharged 2.5-liter engine does fit into the new 3. Mazda representatives said that the header on the naturally aspirated version is big enough as it is, making it easy to shoehorn in the 250-horsepower turbo version without issue. They also said that the company is closely monitoring buyer demand, which originally led to the turbo being available on the Mazda6 and CX-5, along with justifying the introduction of all-wheel-drive in the new Mazda3. So: if there is a case for it, the turbo might come — just don't call it a Mazdaspeed 3, or view it as an overt hot hatch. But the shoe fits.

2019 Mazda CX-5 Turbo First Drive Review | Two-row crossover perfection

Listen: If you're shopping for a crossover, and by all accounts most Americans are, there is no better option on the market than the 2019 Mazda CX-5. When we test drove the all-new 2017 CX-5, we were astounded by its marked improvements over the already-great previous generation. We noted then its biggest drawback was its average 187 horsepower. The CX-5 didn't feel slow, and it certainly made up for it in other ways, like by delivering superior road-hugging abilities. But, it was probably enough to turn off buyers who do their shopping by analyzing spec sheets. For 2019, Mazda addressed that exact issue with a vengeance. With an all-new 2.5-liter SkyActiv Turbo good for 250 horsepower, the CX-5 not only leapfrogs bestselling rivals like the Honda CR-V and Toyota RAV4, but lands squarely in the realm of luxury stalwarts such as the Audi Q5 and BMW X3. When we drove the 2017 CX-5, we likened the handling to that of a Porsche Macan. Now it has the power to match. Among its direct competition, only the 2019 Toyota RAV4 breaks the 200-horsepower mark, ringing in at 203 (and the Hybrid makes an even more impressive 219 ponies), while the Honda CR-V, Subaru Forester and VW Tiguan all sit between 180 and 190. Now, to get the full herd you must fill the tank with 93 octane premium, but if you don't mind leaving a few ponies in the stable you can pump 87 octane for a slight dip to 227 horsepower. The engine adjusts with no ill effects. Even better, torque stays the same no matter what, and the stump-pulling 310 pound-feet of torque comes quick at just 2,000 rpm. The SkyActiv turbo is full of clever engineering tricks, too. There's an exhaust port restrictor, for instance, a narrower channel used only at low engine speeds. Mazda engineer Dave Coleman likened it to a thumb over a firehose, making more exhaust pressure at idle to spool up the turbo, and thus delivering more oomph when you take off from a standstill. Mazdafarians will recognize the mill as the same one that debuted on the 2018 Mazda6. It powers the CX-9 too, Mazda's highly acclaimed three-row crossover. The 3,825-pound CX-5 has 558 fewer pounds to shuffle around than its larger stablemate, making it downright snappy. However, that extra pep does come with a fuel economy penalty, 22 city and 27 highway mpg versus the naturally aspirated version's 24 city and 30 highway mpg.