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Mazda plans to launch an EV in 2020, plug-in hybrid by 2022

Thanks to an interview Automotive News Europe conducted with Mazda president and CEO Akira Marumoto, we have more insight on Mazda's plans to lower its vehicle emissions in Europe. This will undoubtedly bring changes to the U.S. lineup, too, but The Continent sees the first fruits in part because Mazda is well over the European Union's fleet CO2 emissions target for 2021 of 95 g/km. In response to how Mazda plans to achieve the necessary reduction, Marumoto said the carmaker will launch its first EV in 2020 and have a plug-in hybrid on the road in 2021 or 2022. First, some clarification on the emissions numbers and timeline. The 95g/km figure is based on the New European Driving Cycle (NEDC) emissions schedule being phased out next year; the AN piece cites JATO Dynamics findings that Mazda Europe's fleet CO2 average is 135.2 g/km. The new Worldwide Harmonised Light Vehicle Test Procedure (WLTP) schedule comes into full effect in 2020, the fleet CO2 target under that methodology translating to 114.9 g/km. The rules dictate that 90 percent of an automaker's range needs to meet the cap number by the end of 2020, the rest of the lineup must come into compliance by the end of 2021. Failure means enormous fines. Industry analyst IHS Markit estimates "average fines for those not complying could reach ˆ624 ($707) per vehicle at the end of 2020, with a further ˆ190 ($215) increase in 2021." The penalties quickly grow so large that Fiat will reportedly pay Tesla hundreds of millions of euros to pool their fleets and avoid an even larger bill. Mazda's most popular vehicle in Europe is the CX-5 with CO2 emissions ranging from 128 g/km to 150 g/km. On top of that, for a small automaker, the size of potential fines has material effect on the R&D budgets necessary to develop the technologies that will lower emissions, and whatever EV Mazda launches in 2020 needs to sway legions of customers into purchases to be of practical use. This will be challenging. A line in the IHS Markit summary about the industry in general states, "Once in 2021 and subject to full WLTP regulatory monitoring, only a seismic shift (over the baseline) in consumer demand for BEV ('Electric-Plug-In') and PHEV ('Hybrid-Full Plug-In) will result in the full mitigation of EU28 fleet level excess emissions premiums." Mazda hooked up with Toyota and Denso in 2017 on a joint venture called EV Common Architecture Spirit Co Ltd to develop EV technology.

Mazda6, Honda CR-V and an Autoblogger's BMW Z3 | Autoblog Podcast #620

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by West Coast Editor James Riswick and Road Test Editor Zac Palmer. First, they talk about the cars that have been in their driveways, like the Mazda6, Lexus UX 250h and Honda CR-V, as well as Riswick's own BMW Z3 (where he actually recorded the podcast from). Then they discuss the news, which includes car dealers moving to digital commerce and other updates about — you guessed it — coronavirus, and how it's affecting the automotive industry. Finally, they take to Twitter to help a follower choose a weekend convertible for long, isolated drives in this week's "Spend My Money" segment. Autoblog Podcast #620 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Cars we're driving 2020 Mazda6 Signature 2020 Lexus UX 250h Honda CR-V 1998 BMW Z3 2.8 Virtual dealers Coronavirus update Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.