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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.

Toyota, Mazda drop Takata as Mitsubishi, Subaru weigh options

It's not a very good time to be Takata right now. Fresh on the heels of longtime partner Honda ditching them, Toyota and Mazda have both come out and said they will not use the company's airbag inflators if they continue to rely on ammonium nitrate. Bloomberg reports that Subaru and Mitsubishi are also contemplating a divorce. "The inflator using ammonium nitrate produced by Takata will not be adopted by Toyota," President Akio Toyoda said during a briefing today. "What's most important above anything else is the safety and peace of mind of customers." Mazda echoed that position, simply saying it "will not use Takata airbag inflators which contain ammonium nitrate in our new cars." When you lose three huge OEM accounts in as many days, it's certainly going to have a deleterious effect on your fortunes. In Takata's case, that's meant a staggering 39-percent drop in their share price over the last three days. Yesterday alone, the company saw a 6.2-percent fall, Bloomberg reports. As the business publication reports, though, Takata isn't going down without a fight. The company is "considering some plans to survive," including a fundraising plan that will see it potentially offer up additional shares for sale. Still, at least one analyst doesn't see whatever company survives staying involved in the airbag inflator business. "I really don't see how they're going to be able to survive as an inflator manufacturer," Valient Market Research founder Scott Upham told Bloomberg. "When your major clients publicly come out and say that they're not going to use your products anymore, it makes this very difficult to sustain your business." News Source: Automotive News - sub. req.Image Credit: Carlos Osorio / AP Honda Mazda Mitsubishi Subaru Toyota Safety supplier

Mazda3 diesel under consideration for US, hybrid not so much

It's been a long time coming, but we finally clapped our eyes on the real deal, officially official 2014 Mazda3 in hatchback form yesterday. Yet there's a lot more to learn about this next-generation version of what has always been one of our favorite compacts. We know that the US version will come with one of two Skyactiv engines, but what about alternatives? Will there be any... or will the gasoline-fed four-cylinders be powerful and frugal enough to carry the day?
According to Automotive News, the answer is a definite maybe. Mazda North America CEO Jim O'Sullivan has told the trade publication that his employer will consider adding the company's well-liked 2.2-liter Skyactiv diesel powerplant to the model down the road. However, the company first wants to see how the engine fares with American consumers in its big-brother Mazda6 sedan, a model that goes on sale later this year. As for a potential Mazdaspeed3 successor, mum is still the word.
Anything else? Uncharacteristically, Mazda will build a hybrid model of its new 3. We say "uncharacteristically," because the Japanese independent has long shied away from gas-electric powertrain tech. In fact, it's gone so far as to boldly announce its aversion to the technology, with auto show banners proclaiming "Not Electric. Not Hybrid. Not A Drag To Drive." Despite all that, this new generation of Mazda3 will in fact be the company's first full hybrid production model. According to AN, however, O'Sullivan says that the company has "no plans" to sell it in the US.