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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.

Mazda6 diesel may finally launch this year according to CARB certification

For close to a decade, Mazda said it would bring its latest generation of diesel engine, Skyactiv-D, to the United States. And for most of that time, it said that engine would appear in the Mazda6. Last year Mazda finally brought us the engine in the CX-5, and it looks like this year, the 6 will finally get it, too. This seems to be the case based on a CARB certification posted on January 31 specifically for the midsize family sedan. The CX-5, in both front-wheel- and all-wheel-drive variants, is listed in a different certification, so it's not a case of a blanket certification for every vehicle the engine could appear in this year. As expected, the document lists the 6 as having a 2.2-liter turbocharged engine with a six-speed automatic, though it doesn't say whether the model is front-wheel-drive or all-wheel. Either is certainly possible, since all-wheel drive, in particular with the diesel, is available in overseas Mazda6s. Like in the CX-5, the engine will probably make 168 horsepower and 290 pound-feet of torque. While this certification tells us the diesel 6 will probably launch this year as a 2021 model, we're left to estimate the reveal date. Midway through the year, or possibly at the start of the next auto show cycle would seem likely, which would coincide with a model year update. Mazda has stated it will only be offered on the top-tier Signature trim, which starts at $36,345 with the standard turbocharged gasoline 4-cylinder. Looking at the price difference between a turbocharged Mazda CX-5 Signature with all-wheel-drive and the diesel CX-5, the price difference is about $4,000, so it would seem reasonable to expect the Mazda6 diesel to ring in at about $40,000. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

100k Mazda6 sedans recalled over tire-monitoring systems

A tire pressure monitoring system (TPMS) is, as you might have guessed, designed to monitor the air pressure in the tires, and alert the driver if pressure drops. But a problem found in the Mazda6 could keep the system from doing its job. According to the recall notice issued by the National Highway Traffic Safety Administration, the TPMS in the Mazda6 might not recognize a loss in tire pressure if all the tires slowly deflate at the same time. Under-inflated tires, it goes without saying, could increase the risk of a crash. As a result, Mazda is recalling 99,711 examples of the 2014-2015 Mazda6 to have the system's software updated. RECALL Subject : Tire Pressure Monitoring System/FMVSS 138 Report Receipt Date: OCT 27, 2014 NHTSA Campaign Number: 14V675000 Component(s): TIRES Potential Number of Units Affected: 99,711 Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2014-2015 Mazda6 vehicles manufactured October 25, 2012, to October 10, 2014. If the pressures of four of the tires on an affected vehicle gradually drop at the same time, the tire pressure monitoring system (TPMS) may not warn the driver of the drop in pressure. As such, these vehicles fail to comply with the requirements of the Federal Motor Vehicle Safety Standard (FMVSS) No. 138, "Tire Pressure Monitoring System." CONSEQUENCE: A vehicle that is driven with under inflated tires may experience a sudden tire failure, increasing the risk of a crash. REMEDY: Mazda will notify owners, and dealers will update the TPMS software, free of charge. The recall is expected to begin on December 10, 2014. Owners may contact Mazda customer service at 1-800-222-5500. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.