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Mazda3 sales off to rocky start despite massive critical acclaim

Like just about every other auto publication we've seen, we loved the way the Mazda3 drove when we reviewed it a few months ago, but those glowing reviews apparently aren't helping its sales. The new compact may be falling victim to a sales war between the Toyota Corolla and Honda Civic, with the newcomer getting squeezed out by those with more established names and bigger marketing budgets.
According to Automotive News, Mazda3 sales have fallen every month since last August, and its sales are down 27 percent in the first two months of 2014. It certainly isn't helping that the entire compact segment is down five percent this year as well.
The biggest problem for the new model seems to be its price compared to rivals. Mazda is not offering the incentives that are on the hood of competitors. With the previous generation, the company offered more than $2,700 on the hood to move them out, but the current model only carries about $1,233 in markdowns, according to AN.

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.

Mazda3 celebrates 10 happy years

Mazda is on the cusp of unveiling an all-new Mazda3, but the compact will mark an important milestone before that happens. The very first Mazda3 rolled off of the assembly line on June 25, 2003. A decade later, the little car has snagged some 136 awards. The first generation sold 2.2 million units over the span of six years, and the second has smiled its way into the hearts of 1.4 million buyers since 2009. Mazda notes the machine even took the honor of being the top-selling passenger car in Australia in 2011 and 2012.
So, what will the future bring? The Japanese automaker is keeping the details to itself for the moment. From the spy photos we've seen, it looks as if the new design will fall under the company's new Kodo design philosophy. That same language brought us the perilously sexy Mazda6, and the new Mazda3 should be no less attractive. You can check out those photos here.
You can also read the full press release on the compact's 10-year anniversary below.