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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.

Best places to get your car maintained and repaired

In this era of rampant inflation and high interest rates, the challenges of acquiring a car or SUV have been well documented. And so it has never been more important to protect that expensive investment by maintaining it. In recent months, Autoblog has shared Consumer Reports' evaluation of the least and most expensive car brands to keep running, as well as tips to prolong a car’s useful life. Especially since the pandemic, a number of factors have impacted these costs: more complex vehicles, new materials and manufacturing methods, a shortage of qualified technicians and replacement parts. Since 2022, repairs costs have jumped each year by about 10 percent. This month, Consumer Reports is offering a useful primer on keeping your ride in great shape, suggesting what might be the best options for searching out a repair shop, depending, as CR says, “on your car and your situation.” Author Ben Preston identifies three basic types of repair facilities: dealership service departments, independently owned repair shops, and chain repair shops. Building up trust with a specific shop and feeling comfortable going there is important. Preston quotes John Ibbotson, chief mechanic at Consumer ReportsÂ’ Auto Test Center: "You might be able to save a few bucks by going to whichever shop offers the cheapest prices, but if you want consistent, reliable service, itÂ’s best to find a repair shop you trust and stick with it,” Ibbotson says. The story goes on to evaluate each type of service facility. HereÂ’s a breakdown of CRÂ’s findings: Dealerships These work well for owners of newer cars, especially for covered warranty work. But the disadvantage is the high labor rates common to dealer service. Satisfaction ratings for dealer service departments range from very good (Acura, Lexus, Mazda, and Volvo) to not-so-good (Jeep and Kia). Dealers are best for: Fixing infotainment system glitches: "If the screen in the center of your dash has a habit of freezing up, or the touchscreen-activated climate controls arenÂ’t working, the dealership is the most likely place to find someone with the know-how to fix problems that maybe only a factory-authorized technician can access," Ibbotson says. Safety system recalibration: "Anything from a crack in your windshield to a minor fender dent can upset the calibration of the sensors that make features like automatic emergency braking and adaptive cruise control work," says Ibbotson.

Mazda files patents for a sequential twin-turbo setup

Mazda has a history of interesting engine technologies, from yesterday's rotary engine to tomorrow's compression ignition engine, and new patents show it still may have some internal combustion tricks up its sleeve. The one on display in these patents isn't especially new in concept, though. A sequential twin-turbocharger setup is something Mazda itself used on the third-generation RX-7. But it's something we haven't seen much of lately. It looks like it could have some possible advantages over older sequential systems, and it has some potential advantages for enthusiasts. First a quick and dirty primer for what makes a sequential twin-turbo system distinct from other twin-turbo systems. In many twin-turbo engines, there are simply two turbos that work together as one bigger turbo. They're the same size, and they spool up at the same time. With a sequential setup, at low rpm, a smaller turbocharger is spooled up first at low-rpm for quicker throttle response, and as the rpm and exhaust pressure increases, a valve opens up that allows a larger turbocharger to also spool up and provide high-rpm boost. That's basically how the Mazda design shown above functions. A big flap blocks off the larger turbocharger exhaust inlet, channeling all the exhaust to the smaller turbo. When more exhaust is available at high rpm, it looks like that flap opens up to spool up the big turbo, too. What's interesting here is that the way the turbochargers are packaged takes up less space than past systems. It looks like both turbos are contained in one unit that shares the same exhaust outlet, meaning the exhaust manifold could be kept simple and compact. In fact, the piping for compressed intake air could also be shared, reducing the amount of piping, which would further decrease the amount of materials and possible failure points. There are a number advantages of making this system smaller. The potential applications of the system are much greater, since it could fit in smaller cars with smaller engine bays. Making the system smaller also means that there won't be as much weight, which is important from both fuel economy and performance standpoints. Finally, the smaller setup likely uses fewer materials, which could make the system cheaper and thus easier to offer on a wider range of vehicles, or at least more profitable for Mazda.