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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

2020 Mazda CX-30 small crossover lands an IIHS Top Safety Pick rating

The 2020 Mazda CX-30 has come out of the gate swinging on the safety front, earning the Insurance Institute for Highway Safety (IIHS) Top Safety Pick award in its first year on the market.  Mazda's new baby crossover earned a "Good" rating in all six of the Institute's crashworthiness categories (driver-side small overlap front, passenger-side small overlap front, moderate overlap front, side, roof strength and head restraint) and its accident avoidance system was rated "Superior." Sadly, only one set of available headlights was rated "Acceptable" or better, which kept the CX-30 out of the running for the coveted Top Safety Pick+ award. The best-rated lamps available on the CX-30 are actually those that come standard. The curve-adaptive units offered as an optional upgrade were rated "Poor" due to excessive glare. For 2020, IIHS made the guidelines for earning Top Safety Pick and Top Safety Pick+ awards even more stringent. Up until 2019, cars needed only to earn an "Acceptable" rating in the passenger-side small overlap test to qualify for a Top Safety Pick. For 2020, that has been raised to "Good."   The bigger challenge for many OEMs will be headlights. To earn Top Safety Pick+, a vehicle cannot be sold with any headlight configuration that does not earn at least an "Acceptable" rating.    So far, fewer than two dozen 2020-model-year vehicles for sale in the U.S. have met the criteria for Top Safety Pick+; roughly half again as many qualify for the lesser award. In coming years, the Institute is expected to add even more conditions, especially in the realms of accident avoidance and pedestrian safety. 

AWD Mazda6 or Mazda3? That could be a thing, but there's a problem

We wanted a stronger engine in the Mazda6, and last week at the L.A. Auto Show we got one, Mazda's turbocharged 2.5-liter four. (Though some of us wanted a manual transmission with it, but didn't get that.) And now we learn that apparently a lot of us would like to have all-wheel drive in Mazda's sedans. That might be a tough ask, but Mazda says it hears us. In an interview with CarAdvice, Masahiro Moro, Mazda North America's president and CEO, said there's a big demand in the U.S. for AWD, so Mazda's looking into it. Ah, but maybe we can't have everything. "I think we are not able to combine four-wheel drive and the 2.5-liter turbo. We have a layout issue with the sedans, that's why a four-wheel drive isn't deployed on the Mazda 3 and 6 so far," Moro said. "But there is a huge demand, at least what I know is that in the East Coast of the USA, 80 or 90 percent of premium sedans are sold with all-wheel drive." And with Mazda going upscale, it only makes sense to give upscale, performance-oriented customers what they want, like the AWD sedans the German premium brands have been offering for years. "Four-wheel drive becomes a premium cue for U.S. consumers," said Moro, "and obviously I have asked our R&D department to think about how we can accommodate four-wheel drive capability in the future." Though the CX-9, being a crossover, of course has AWD in combination with that turbo engine, it simply must not have the platform limitations of the sedans. And all-wheel drive in the Mazda6, at least, has been available in Japan, Europe and Australia, but paired with the Skyactiv-D and another smaller engine, diesels we don't get here. Moro's statement leaves open the possibility of AWD with the base 2.5-liter engine, but maybe not. Besides, a premium buyer would want the turbo. So, when Moro says the future, he means not now, not in the Mazda6 facelift we just saw. But maybe in the next big redesign? Or maybe the configuration problems will be easier to overcome when working with the innovative new 2.0-liter Skyactiv-X compression-ignition engine that's expected in the 2019 Mazda3. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Featured Gallery 2018 Mazda6: LA 2017 View 16 Photos Image Credit: Drew Phillips / Autoblog Auto News Mazda Technology Emerging Technologies Performance Sedan