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Mazda taps Americas head as CEO to raise game in its biggest market

TOKYO — Mazda has named the head of its Americas operations as its next president and CEO after its current chief steps down in June, as Japan's fifth-largest automaker seeks to boost profitability in North America, its biggest market. The company said on Friday that Masamichi Kogai will step down and be replaced by current vice president Akira Marumoto, who now oversees operations in the Americas. The changes are effective June 26 after Mazda's annual shareholders' meeting. Mazda, which has global annual sales of around 1.6 million vehicles, has enjoyed a run of rising vehicle sales, expanding in markets particularly in North America, which accounts for nearly 30 percent of total sales. But as one of Japan's smaller automakers and a tiny player globally, it faces growing competition in the United States, where market growth has slowed, and where the company's profitability has sagged due to higher discounting and slowing demand for sedans. The maker of the MX-5 Miata roadster and the reputed Skyactiv gasoline engines also faces higher costs to stay competitive in an industry which is being disrupted by new technologies, including self-driving cars and electric vehicles. Marumoto, a 38-year company veteran with a background in engineering who described himself as having a "strict" work ethic and admitted to being "short-tempered" at times, previously led Mazda's corporate planning and product strategy divisions before heading its Americas operations. He said that growing sales and improving profitability in the North American market would be his biggest priority, along with expanding the company's brand image as an innovative car maker. "Given the rapid changes occurring in the auto industry at the moment it's often asked whether a small company like us will be OK," Marumoto, 60, told reporters at a briefing in Tokyo. "But before we even consider this we need to show our strengths, and what makes us different if we want to grow our brand." Kogai, who became Mazda's president and CEO in 2013, will be following the footsteps of his two immediate predecessors who also held the top job for five years each. He will still be with the automaker and become its chairman, the company said. Earlier this year, Mazda announced that it would invest in a new, $1.6 billion plant in the U.S. state of Alabama as a joint venture with Toyota.

Mazda's product roadmap after Skyactiv-X: diesel, rotary, hybrids, even EVs

When we first heard that Mazda had cleared the major hurdles on gasoline compression ignition, and were just tidying up the details with clear production intent, the first kneejerk thought was: That's it for Mazda's consumer diesel. In particular, the Skyactiv-D that was intended for sale in the U.S., only to be delayed for years by various regulatory roadblocks and other issues that Mazda is frustratingly (but understandably) vague on. At least, it'd die out at some point down the road once Skyactiv-X was widely available. It turns out that's not the case at all. Mazda will adopt an approach that becomes more and more electrified and diverse the closer you get to 2035. But internal combustion will play a deep and central role up to that point, and probably beyond. Before we get to what those different powertrains, diesel and electrified, will look like down the road, let's stop and think about Mazda's philosophy. It couldn't be more different from the approach of most manufacturers that are currently producing BEVs and hybrids, which are heavily incentivized by both the automakers and the government, both state and local, depending on the locality. Even with all that cash on top of the hood, the market penetration of electrified vehicles is low. Mazda's too small to lose money paying people to drive EVs and hybrids. Its risky solution (which is plucky, but has had mixed results) is to simply improve the internal combustion engine. It's achieved the best fleet average fuel economy in the U.S. already, using a range of direct-injection gas engines that are mostly naturally aspirated. A few tiny nods to electrification have been introduced, like i-eLoop regenerative braking and the Demio EV (a Japanese-market, last-generation Mazda2 with a 20kWh battery that was tested with a tiny rotary engine range extender). But the focus is on combustion, not electricity. And that focus isn't going away anytime soon. Mazda believes that pure gasoline, gasoline hybrid, and gasoline PHEV vehicles will remain the vast majority of vehicle sold through 2035. At that point, Mazda forecasts, BEV and fuel cell vehicles should make up about 15 percent of the total of Mazda's lineup. The remaining 85 percent will utilize some form of internal combustion engine. Now, that includes hybrids and even a small number of CNG/LPG cars. And these are global numbers, as well. There may be even fewer fuel cell and CNG/LPG vehicles sold here than abroad.

California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle