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Japanese automakers ramping production for renewed American sales

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.
Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.
Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.

2016 Mazda CX-9 starts at $32,420 with standard turbo engine

The 2016 Mazda CX-9 will start at $32,420 (including $900 for destination) when it arrives at dealers later this spring. The base price is just slightly higher than competitors in the three-row CUV segment like the 2016 Ford Explorer for $31,995 and 2016 Honda Pilot for $31,045. The new model is also more expensive than the 2015 CX-9, which had a $30,865 starting price. All versions of the 2016 CX-9 use Mazda's new 2.5-liter turbocharged engine with 250 horsepower (on 93-octane fuel) and 310 pound-feet of torque, which routes through a six-speed automatic. The combo returns an EPA-estimated 22 miles per gallon city, 28 mpg highway, and 25 mpg combined in front-wheel-drive form. All-wheel drive adds $1,800 to the price of most trims. We found the powertrain to be fantastic during when driving the CX-9 prototype. Even the base CX-9 Sport trim has amenities like LED headlights and taillights, a backup camera, trailer stability assist, and a seven-inch infotainment system. An optional Sport Package for $950 adds a power driver's seat, heated front seats, and heated side mirrors. Customers can really load the CX-9 with tech, though. The Touring model for $36,870 has Blind Spot Monitoring with Rear Cross-Traffic Alert, keyless entry, a power hatch, and an eight-inch infotainment system. The optional Touring Premium Package for $1,745 also adds automatic headlights, LED fog lights, navigation, and Smart City Brake Support. If that's not enough, the Grand Touring for $41,070 features a head-up display, lane-departure warning, lane-keep assist, and radar cruise control. The top spec CX-9 Signature for $44,915 includes all of these features and comes standard with all-wheel drive. It also has Nappa leather upholstery, rosewood trim, LED lighting around the gearshift, and LED accents on the grille. Related Video: 2016 Mazda CX-9 Priced from $31,520 MSRP[1], Elevates Midsize, Three-Row Crossover Experience - Class-Leading EPA-Estimated Fuel Economy, Elegant, Upscale Interior and Spirited Handling Dynamics Make CX-9 a Standout - IRVINE, Calif., March 17, 2016 /PRNewswire/ -- Mazda North American Operations (MNAO) has today released pricing and packaging information for its all-new 2016 Mazda CX-9 midsize, three-row crossover SUV. Offering a premium experience, fun-to-drive handling dynamics and bold KODO—Soul of Motion design, CX-9 represents a compelling offering in its class with a starting MSRP from $31,520.

Mazda's first-quarter profit slumps on weak sales in U.S. and China

TOKYO — Mazda reported a 79% drop in quarterly operating profit, falling significantly short of estimates, as it continues to struggle with declining U.S. and Chinese sales, while a strengthening yen also cut into its bottom line. Operating profit at JapanÂ’s No.5 automaker was 7.0 billion yen ($64 million) in the first quarter ended June, versus around 33 billion yen a year ago and less than half of an average forecast for 18.5 billion yen from analysts polled by Refinitiv. Mazda, however, reiterated its forecast for a 33% rise in operating profit to 110 billion yen in the year ending March. ThursdayÂ’s profit announcement marks MazdaÂ’s poorest first-quarter operating performance since the June 2012 quarter. The automaker has been struggling with falling demand for its cars over the past year or so, while it is also recovering from flood-related damage to its factories in Japan that led to a quarterly loss in the July quarter of 2018. The Nikkei business daily on Wednesday had reported that operating profit at the company would fall around 70% for the quarter due to lower sales in the United States. Mazda posted global sales of 353,000 units for the quarter, down 12% from a year ago. Its sales in the United States, its biggest market, fell 15% to 68,000 units, while in China, Mazda sold 54,000 vehicles, down 21% on the year. A trade war between the top two economies and slowing growth in China, the worldÂ’s biggest auto market, have prompted a broad-based sales downturn in the global auto sector. Automakers are grappling with easing demand for cars just as they must invest heavily in new technologies including electric cars, autonomous driving technologies and ride-sharing services to survive a major industry shift away from car ownership. Many of MazdaÂ’s rivals at home and abroad have been reporting disappointing quarterly results, with Nissan and Ford also announcing job cuts and possible plant closures earlier this month. The United States is a key source of revenue for Mazda, but it imports all its vehicles sold there, exposing it to a threatened hike in U.S. tariffs on imported cars from Japan. To limit its vulnerability to possible tariffs and currency fluctuations, Mazda is investing in a new plant in the U.S. state of Alabama, a joint project with Toyota.