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Mazda's first profit in five years in sight due to weak yen
Fri, 05 Apr 2013Automotive News reports Mazda is set to turn a profit for the first time in five years. The automaker is more dependent on exports from Japan than other automakers based in that country, and as a result, it has long suffered at the hands of a strong yen. But the currency has declined in value by some 16 percent over the past six months and Mazda's shares have tripled in value to their highest level since 2008. Contrast this situation to a year ago when Mazda printed 1.22 billion new shares to raise cash. The move was equivalent to 70 percent of the company's then-outstanding stock, and values tumbled to record lows as a result.
Now that the yen has fallen to a value of around 96 per dollar, Mazda operations in the US are more profitable and the company now projects it will earn around $279 million for the next fiscal year. Automotive News says a one yen change against the dollar can have a 9.1 percent impact on Mazda operating profit compared to 4.7 percent at Subaru parent Fuji Heavy Industries or 3.1 percent at Toyota. Those automakers better insulate themselves from currency fluctuations with overseas manufacturing facilities.
Crash test videos show how rust compromises safety
Fri, Apr 13 2018These recently released Swedish videos serve as a reminder that rust isn't just a cosmetic flaw, when it comes to cars. The insurance company Folksam and the homeowner organization Villaagarnas Riksforbund gathered examples of two relatively popular, but by now rusty cars, and then performed crash tests with them at the Thatcham Research facility in Britain. The results are sobering. The rustier cars chosen for the tests were first-generation Mazda6s, cars that have a reputation for early-onset rust in salty surroundings, such as the Nordic countries in Europe or the Salt Belt in the U.S. The cars in the other end of the spectrum were fifth-generation Volkswagen Golfs, which thanks to their body treatment only really start to show rust at over ten years old. But rust isn't just on the surface, it goes bone deep. While the Mazda did decently well in Euro NCAP testing as a new car, there's now a 20 percent higher risk of death in the 2003-2008 Mazda due to the degradation of its bodyshell. In the rusty car, the chassis rail separates from the floor, the footwell ruptures, the sill gives way, the seat mountings move and the dummy's head hits the B-pillar; all important failures, despite Thatcham saying the cars actually performed better in the crashes than they expected with all the rust. But still, the corroded structure isn't able to transmit loads in the way it was originally designed to do. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The Golf does significantly better — despite rust flakes flying when the Golf hits the wall — as the years have only caused it to lose a single point. An important thing to remember is that the cars aren't tested in comparison to corresponding new, 2018 cars: the tests are in reference to the crashworthiness standards in place when they were new. The cars' airbags inflate like they were supposed to, but on the Mazda the dummy's head bottoms out the airbag due to the car's structure failing, meaning the airbag cannot perform as designed. Driven cautiously, an older car is still mostly fine for driving around. But tests like these remind us that it's not enough that a car runs and drives, if the body has turned into Swedish knackebrod. And if you repair the visible rust and the structure underneath remains as compromised as ever, there's an ugly truth under all the bondo. Perhaps it isn't such a bad idea to have yearly roadworthiness inspections.
Mazda still has a team working on rotary engines
Sun, Sep 20 2015The flame still burns within Mazda to stage a rotary engine revival. Before you start getting excited, it's way too soon to start saving money for the fabled, next-gen RX-7 or RX-8. Still, company boss Masamichi Kogai confirmed to Autocar that the Japanese automaker has an engineering team dedicated to improving the Wankel. This development group has the hard task of trying to make the rotary stack up to modern internal combustion engines in terms of emissions and fuel-economy standards. Neither factor were ever exactly Wankel's strong suits. Kogai described them as working "very enthusiastically" to Autocar. The boss didn't discuss any future RX-vehicles or the size of the team, however, a report from last year indicated that there were 30 engineers in partnership with universities to update the engine's design. After problems keeping up with emissions and fuel economy, Mazda built it's last rotary for an RX-8 in June 2012. Since then, there have been intermittent rumors of a return. One possible solution was a design called the 16X that was supposed to offer more torque and better fuel economy. Another possibility was a small-displacement unit as a range-extender in an electric Mazda2. Rumors of a new RX-7 have been heard for years. In 2013, Kogai clearly said that it wasn't happening. When asked again last year, he reiterated the same point.