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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.

Turbo Mazda6 starts at $30,090, only base trim gets manual

We learned last fall that the 2018 Mazda6 is getting a slew of updates to its appearance and refinement, as well as introducing this generation's first turbocharged engine (may we never forget the old Mazdaspeed6). Now we know how much it will cost to get that 2.5-liter four-cylinder's 250 horsepower and 310 pound-feet of torque: $30,090. This is the base price of the Mazda6 Grand Touring, which is the entry trim level to this engine. In fact, the Grand Touring will only come with the turbo engine, as will the new Grand Touring Reserve and Signature trim levels. The base-level Sport trim and higher-level Touring will only come with the naturally aspirated 2.5-liter four-cylinder (187 hp, 186 lb-ft of torque) that now comes with cylinder-deactivation. Every Mazda6 will receive a comprehensive series of updates when it arrives at dealerships this April. The revised Sport, which comes with cloth manual seats, dual-zone climate control, 17-inch alloy wheels, LED headlights, blind-spot warning, rear-cross traffic assist and low speed automatic emergency braking, is only $5 more than the outgoing 2017.5 model for a new base price of $22,840. The optional automatic adds another $1,050 to the price. Moving up to Touring limits you to only the automatic transmission and adds 19-inch alloy wheels, leatherette upholstery, a power driver's seat, heated front seats, a sunroof, and rear air vents. It starts at $26,590, $455 more than the outgoing model with the optional automatic. Moving up to the Grand Touring brings us to the turbo engine. It also adds an 11-speaker Bose sound system, navigation, heated side mirrors, and an auto-dimming driver's mirror. It also gets shift paddles on the steering wheel, so although the turbo engine won't be available with a manual, there will be a way to conveniently shift gears. Its price is $30,090, and as a point of reference, the cheapest Honda Accord with the 2.0-liter turbocharged engine starts at $31,200 with either a manual or automatic transmission. The Grand Touring Reserve comes in at $32,590. This trim adds a heads-up display, rear spoiler, windshield wiper de-icers, heated steering wheel, heated rear seats, real leather upholstery, and power adjustment and ventilation for both front seats. The range-topping Signature starts at $35,640 and adds Nappa leather, UltraSuede trim, parking sensors, 360-degree camera views and a configurable instrument screen. Related Video: This content is hosted by a third party.

2017 Mazda CX-9 Prototype First Drive

If you read our coverage from last week's Los Angeles Auto Show, you'll note that we were extremely fond of the new Mazda CX-9. We like the look of the thing, inside and out, and it promises to be the best-driving entry in the three-row crossover class. We agree wholeheartedly with that claim. You see, we already drove it. Full disclosure: Our test of the camouflaged CX-9 prototype you see here was short, and while we were able to get a good handle on the CX-9's basic driving dynamics, it'll take more than a 30-mile session around the outskirts of LA to uncover the finer details. What's more, these vehicles are not production ready. In fact, according to our handlers at Mazda, the CUV we tested was actually at the stage before pre-production – so basically, a pre-pre-production car. That said, all the details about the engine, transmission, suspension, and steering are "largely final." As you can see in the gallery, the cars we tested were heavily camouflaged both inside and out. As for styling, we love it – see the undisguised pictures from the LA show for more views. And as for inside, we can say leather seats of our Grand Touring model were comfortable and supportive, and the smallish steering wheel felt natural in the hand. Even in pre-pre-production state, the CX-9 was impressively quiet. An extra 53 pounds of under-floor sound deadening, thicker windows, and active noise cancellation all contribute to what Mazda claims will be "among the quietest vehicles in its class." It's worth noting that the good sounds, like the throaty, whooshy noises of the turbocharged engine, found their way into the cabin just fine. The 2.5-liter, turbocharged four-cylinder engine – Mazda's first force-induced Skyactiv engine – is an excellent piece. The 2.5-liter, turbocharged four-cylinder engine – Mazda's first force-induced Skyactiv engine – is an excellent piece. It uses a variable geometry turbocharger, which the company calls a Dynamic Pressure Turbo. Here's how Mazda explains it: Imagine a normal garden hose. Put your thumb over the nozzle, and the force of the water increases dramatically. That's the DPT at low rpms. It features three small exhaust ports to direct exhaust gases into the turbo, making for 17.4 quick-spooling PSI at low rpms. As the revs climb, a flow control valve opens up, redirecting the gases to a trio of larger ports – removing your thumb from the hose, if you will – and keeping the boost up.