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Mazda's Tokyo concept foretells of rotary revival

Mazda has long been rumored to be planning a revival of its rotary-powered sports car. Some of those rumors may have come down to wishful thinking as much as concrete information. But now, on the eve of the Tokyo Motor Show, new details have come to light. The Japanese automaker is slated to unveil a two-door sports car concept, previewed in the teaser image above. Little in the way of firm information has been made available prior to the show car's debut, but sources are now citing senior company officials as confirming it has a rotary engine. "It is a two-door, two-seater, Mazda CEO Masamichi Kogai told Autocar. "It is a pure sports car design. We have MX-5 and another icon is a rotary sports car. We haven't talked about market reach but this would be in that segment." R&D chief Kiyoshi Fujiwara added: "People think rotary can not meet modern eco demands. The SkyActiv engineers worked on rotary and gave it cutting-edge tech. It is an essential part of our DNA and it [will] just be passed onto future engineers. It is synonymous with the brand. Some time in the future it will return and be called SkyActiv-R." The last time Mazda produced a rotary-powered model, of course, was with the RX-8, which ended production in 2012. That was preceded by three generations of RX-7, the first of which will be celebrating its 40th anniversary in 2018. If it manages to get the Wankel technology up to modern standards, that could provide just the right opportunity for Mazda to launch a new model. Reached for comment, Mazda spokesman Jacob Brown told Autoblog: "While we can confirm that Mazda continues to develop rotary engines, we cannot confirm production of a rotary at this point. Rotaries are one of the signature engineering technologies that define Mazda, and we will continue exploring them to see where they may fit for production applications." Related Video:

Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

Mazda books first yearly profit in half-decade, NA still a drag

Automotive News reports Mazda has posted its first annual profit in five years. The company made $364.3 million in the last fiscal year, following a $1.14 billion loss the year prior. Operating profit also jumped up by $91.3 million to $572.8 million, thanks in part to a revenue increase of 8 percent to $23.42 billion.
But the news isn't all rays of sunshine. North America continues to be a problem for Mazda where the automaker posted yet another loss. The manufacturer lost $519.1 million last year, up from $427.8 million the year prior. While the launch of the CX-5 helped see US sales increase by 2 percent to 273,000 vehicles, the region as a whole bought up 372,000 units. Mazda had predicted closer to 380,000 units.
Even so, Mazda says it should have North America back in the black by next year, with the company forecasting a sales increase of 11 percent to 415,000 units in the region. That's thanks in part to a boost from the redesigned Mazda6 sedan.