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Mazda reports highest profits in its 94-year history

We may only be a third of the way through 2014, but for Japanese companies, March 31 marked the end of fiscal 2014, and it was a banner financial year for Mazda's global operations. The Japanese independent saw its highest global operating profits in its nearly 100-year history. Its global operating profits were up a huge 238 percent. Yes, a 238 percent increase over 2012 to 1.36 billion euros ($1.88 billion), eclipsing the brand's previous best year, 2008, by 12 percent. Net earnings, revenue and global sales volume also saw increases over the last fiscal year.
What's most impressive, though, is where Mazda saw improvement. The notoriously rough European market was rather kind to the Zoom-Zoom brand, where sales increased 25 percent to 163,000 units. That figure was bolstered by a 35-percent sales increase in Great Britain and a 20-percent jump in Germany, Europe's two largest markets. Japanese sales, meanwhile, were up a respectable 13 percent, to 244,000 units. In China, Mazda saw a 12 percent bump.
Notice we aren't talking about North American sales? That's because Mazda only saw a moderate, five-percent gain in the New World, with sales climbing to 391,000 units in the US, Canada and Mexico. This is particularly disappointing considering Mazda has launched three critically acclaimed products (CX-5, Mazda6 and most recently, Mazda3) for the North American market over the past two fiscal years. Still, it isn't a particular reason to be concerned, as IHS industry analyst Stephanie Brinley notes. "Five percent isn't terrible," Brinley told Autoblog, saying that Mazda should see a bump in 2014 as the Mazda3 picks up steam.

Mazda engineers urging execs for more RWD models

According to Edmunds, Mazda engineers are pressuring the company to create more rear-wheel-drive models, in an effort to better differentiate itself from its rivals. This push is reportedly coming from middle and senior engineers within the company, and these folks at Mazda believe this rear-drive strategy would allow the automaker to produce more distinctive, fun to drive cars. Mazda discontinued the rear-drive (and rotary-engined) RX-8 a few years ago, leaving the MX-5 Miata as the company's only RWD offering.
As enthusiasts, we're fully on board with Mazda offering more rear-drive cars, but unsurprisingly, the company's top management isn't exactly keen on the idea - and with good reason. First and foremost, the cost associated with redesigning fresh architecture for new models would be very high, and considering the fact that Mazda hasn't exactly been raking in the dough lately, an expensive new venture like this doesn't make a whole lot of sense. What's more, Mazda's latest front-drive models - the Mazda3, Mazda6 and CX-5 - have been very well-received, and are helping the company gain sales momentum.
But that doesn't mean there aren't other options. Edmunds reminds us that Mazda is already partnering with Alfa Romeo on the next-generation Miata, and if this collaboration is successful, perhaps the relationship could bear additional fruit. After all, Alfa Romeo is said to be working on returning to its rear-wheel-drive roots, so Mazda's engineers might be able to make a case for more RWD goodness after all.

Mazda revamping dealers with 'Retail Evolution'

Mazda introduced its Retail Revolution dealership design language 12 years ago, which focused on open-plan spaces, multimedia areas, and allowing customers to interact with the brand before needing to interact with a salesperson. Two years ago the carmaker started work on the next step in its dealership design, and the new language, called Retail Evolution, was unveiled at Mazda of Everett in Seattle, Washington. Aiming to make the Mazda brand feel more premium and increase dealer profits, it goes even further on the open-plan to create "a new level of business transparency." It's all done with a lot of black, white, raw wood, metal finishes, and a lot of glass. Mazda Lounges will offer free wi-fi, and digital displays will replace static photographs. So as not to hurt showrooms still recouping their investment in Retail Revolution, Mazda will work with dealers to figure out how best to update facilities, and the Retail Evolution has three tiers that can be adapted to particular locations. The press release is below, a couple of renderings are above. MAZDA ANNOUNCES ALL-NEW RETAIL EVOLUTION DEALERSHIP DESIGN Mazda of Everett Showcases First Ground-Up Retail Evolution Design IRVINE, Calif. (August 27, 2015) – Mazda North American Operations (MNAO) today announced its all-new dealership design, dubbed "Retail Evolution", featuring an open concept floorplan that offers a new level of business transparency, and a look and feel enhanced through the use of natural materials that results in an even more upscale decor than the company's current popular Retail Revolution design. The first Retail Evolution dealership built from the ground up to this exacting standard will be Mazda of Everett in Seattle, Wash., opening today. "Thanks to our KODO design philosophy and suite of SKYACTIV technologies, our vehicle lineup has never been stronger. We are now able to take that groundbreaking design language and translate it into our dealership experience," said Jim O'Sullivan, president & CEO, MNAO. "Retail Evolution embodies the spirit and direction of the Mazda brand, while offering an upscale experience our customers expect and deserve." Clad in premium black, clean white, and featuring new chrome Mazda signage, the new Retail Evolution Mazda dealerships will provide dealers with strong curb appeal. New materials throughout the building give dealers an upscale look and feel with warm raw-material tones of wood and metal in the showroom.