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Mazda braces for record annual operating loss as car sales slump

TOKYO — Mazda Motor Corp forecast a record annual operating loss on Friday as the Japanese automaker continues to be pummeled by falling vehicle sales due to the COVID-19 pandemic. Japan's No. 5 automaker anticipates a 40 billion yen ($383.5 million) loss for the year to March, joining a growing number of automakers, including Ford and Nissan, which expect annual losses after the virus shuttered vehicle plants and kept customers away from car dealerships. Even before the coronavirus outbreak, the maker of the CX-5 SUV crossover and the Mazda3 sedan had been suffering from sliding profits for the past two years as slim new vehicle offerings has knocked sales in the United States and China, its two biggest markets. In the year to March, Mazda anticipates an 8% fall in global vehicle sales to 1.3 million units, its lowest in seven years, which will likely result in an operating loss. The automaker said it would forgo paying a dividend this year. Ahead of Friday's announcement, the company's shares fell 7%, as the consensus forecast in a Refinitiv poll of 19 analysts was for a 46 billion yen annual loss. Mazda posted an operating loss of 45.3 billion yen for the first quarter, its weakest in 11 years, due to a 31% drop in vehicle sales between April and June. In the April-June quarter, sales fell to 244,000 units, largely due to a drop in demand at home and in Europe. Sales in North America, Mazda's biggest market, fell 19% in the same period. But China was a bright spot, as sales rose 13% during the quarter as car demand has returned to the world's largest auto market, having recovered relatively quickly from the virus.

Watch what happens inside a rotary engine

Since it looks like Mazda may very well revive the Wankel rotary engine as a range extender for electric cars, there's no better time to become reacquainted with the quirky internal-combustion engine. And there's hardly a better way to become reacquainted than by peering into a running rotary engine, which you can do with the video above. The video comes to us from the YouTube channel Warped Perception. The channel has already shown what happens inside a conventional internal-combustion piston engine by putting a clear cylinder head on top of a flathead engine. This new video shows off the rotary engine by adding a clear side to a tiny model-airplane engine, something that we weren't aware existed and are glad to know about now. Despite the tiny size, the engine is functionally almost exactly like the bigger versions you'll find in Mazdas from about 1967 to 2012. It has intake and exhaust ports on the edges of the rotor housing, and the triangular rotor swings about in a peanut-shaped housing. For maximum effect, jump to right around the 7:40 timestamp. This is the point at which a bit of acetylene is added to the air-fuel mix for a brighter flame. It's at this point that you can really see when the mixture combusts and how the pressure of the flame pushes the rotor to produce rotational motion. Each stage of the video does slow things down to make everything as clear as possible. Even if you already knew how rotary engines worked, it's still fascinating to watch, first because it's something you don't get to see usually, and also because of the engine's elegant simplicity. Related Video: Image Credit: YouTube / Warped Perception Weird Car News Mazda Technology Videos rotary rotary engine

2016 Mazda CX-5 recalled to address failing DRLs

Mazda announced Tuesday that it will recall more than 35,000 examples of the 2016 CX-5 crossover to address an issue that may lead to deterioration or failure of its LED daytime running lights.  In affected models, the gasket used to seal the wiring harness to the LED module was not manufactured to Mazda's specification. As it degrades over time, it can release sulfur, which in turn can potentially corrode the LED control circuit, causing the LEDs themselves to flicker, illuminate poorly or even fail outright.  Per Mazda, there is no alert for this condition, so drivers can potentially lose daytime running light function without realizing it, leaving them tougher to spot in poor light.  The campaign will cover 36,761 CX-5s sold in the U.S. and U.S. territories. Mazda says no accidents or injuries related to the issue have so far been reported.  This new campaign has not yet been published in the National Highway Transportation Safety Administration (NHTSA) recall database, and Mazda's statement did not include details of the proper remedy for the issue or when customers can expect to be contacted to arrange for service.  We expect that all 2016 CX-5s with LED DRLs will receive new harness gaskets and that those showing signs of LED module corrosion will have those replaced as well.  The 2016 CX-5 has been the subject of four other recall campaigns — including one for an improperly torqued steering knuckle bolt and another for a defective fuel filler pipe — but this is the first  new campaign for that model year since 2016.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.