2021 Mazda Cx-5 Touring on 2040-cars

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Mazda's first profit in five years in sight due to weak yen

Automotive News reports Mazda is set to turn a profit for the first time in five years. The automaker is more dependent on exports from Japan than other automakers based in that country, and as a result, it has long suffered at the hands of a strong yen. But the currency has declined in value by some 16 percent over the past six months and Mazda's shares have tripled in value to their highest level since 2008. Contrast this situation to a year ago when Mazda printed 1.22 billion new shares to raise cash. The move was equivalent to 70 percent of the company's then-outstanding stock, and values tumbled to record lows as a result.
Now that the yen has fallen to a value of around 96 per dollar, Mazda operations in the US are more profitable and the company now projects it will earn around $279 million for the next fiscal year. Automotive News says a one yen change against the dollar can have a 9.1 percent impact on Mazda operating profit compared to 4.7 percent at Subaru parent Fuji Heavy Industries or 3.1 percent at Toyota. Those automakers better insulate themselves from currency fluctuations with overseas manufacturing facilities.

Mazda's game plan: Compression ignition, superchargers, EVs — and still fun to drive

Today, Mazda announced its new Sustainable Zoom-Zoom 2030 initiative. Dumb marketingspeak name aside, this is Mazda's general plan to make its cars more efficient while still keeping Mazda's fun-to-drive character. The most notable part of this announcement is Mazda's new Skyactiv-X engines and the addition of EVs and electrified powertrains starting in 2019. As we reported back in January, this new supercharged Skyactiv-X engine family will be the first to use high-compression ignition, or HCCI, rather than traditional spark plugs. Each year, fuel economy and CO2 emissions standards grow ever tighter. Each and every automaker around is looking for ways to improve both factors. Initially, most have chosen to downsize engines and add turbochargers. That's why Mazda's new Skyactiv-X engines are going to be so special. They essentially work like a diesel engine, using extremely high compression to ignite the fuel rather than the flame from a spark plug. Adding a supercharger rather than a turbo retains a smooth and immediate engine response. Look for a 10 to 30 percent increase in torque and a sizable boost in fuel economy. Mazda's engine already have some of the highest compression ratios around, but these new engines will push well into diesel territory. The biggest issue so far with gasoline compression ignition is controlling when the gasoline ignites. Mazda claims to have solved this issue, seamlessly moving from spark to compression ignition. This new plan comes 10 years after the first Sustainable Zoom-Zoom initiative was announced. With Sustainable Zoom-Zoom 2030, Mazda wants to focus on the Earth, society, and people. Together with the new engines, Mazda hopes to create a sustainable future that still involves engaging and fun-to-drive automobiles. First, Mazda wants to consider emissions over the entire life of a car. That means reducing emissions generated while building the car or fueling and charging a car in addition to those released while it's on the road. The goal is to reduce emissions to 50 percent of 2010 levels by 2030, and a 90 percent reduction by 2050. New electrified models will debut in 2019 in markets that have a high ratio of clean energy for power generation. Mazda's focus on society aims to improve safety with the Mazda Proactive Safety philosophy. Like with Skyactiv, this ethos goes far beyond simply improving an engine or adding new active safety technology.

Weekly Recap: Toyota, Mazda team up to 'make cars better'

Toyota and Mazda are teaming for a noble purpose: to "make cars better." That's how the two Japanese automakers termed their partnership, which was announced this week. So what does this actually mean? The companies said they will set up a joint committee to look for areas of cooperation and named safety and the environment as issues they plan to tackle. From a product perspective, it's believed that Toyota is interested in Mazda's Skyactive engine portfolio. In turn, Mazda has its eye on Toyota's fuel-cell and plug-in hybrid technology. While more specifics were not confirmed, the companies said the "agreement will go beyond the traditional framework of cooperation," and it has the potential to be a long-range partnership. "The main purpose of this initiative is to enhance the appeal of our cars," Toyota president Akio Toyoda said at the announcement. Previously, Mazda has licensed Toyota's hybrid tech and assembled compact cars for Toyota in Mexico. Akio Toyoda said these projects "triggered" the automakers to explore further collaboration. Dave Sullivan, product analysis manager for AutoPacific, said the tie-up echoes Daimler's wide-ranging work with the Renault-Nissan alliance. "This could be a well-groomed match due to each having very unique skill sets," he said. OTHER NEWS & NOTES Volvo selects South Carolina for US factory Volvo confirmed this week that it will build its first US factory in South Carolina, with construction set to begin this fall. The company first revealed plans in March, though it didn't announce a site. The plant will have initial annual production of 100,000 units, though the vehicle or vehicles to be assembled were not specified. The factory, located near Charleston, will open in 2018 and ultimately employ 4,000 people. The facility will help Volvo continue its growth strategy, which includes strengthening its presence in the US market, where it wants to sell more than 100,000 cars per year. "Building a plant in the US is a reflection of Volvo Cars' commitment to the US and the key role the US plays in our growth objectives," Lex Kerssemakers, senior vice president, Americas, said in a statement. Ford GT spied on the road The 2017 Ford GT was spotted testing around the Blue Oval's headquarters in Dearborn, MI, this week. The raw body panels were exposed, and they lacked paint or camouflage. It's the first time the GT has been captured on the street after a spring of auto show reveals.