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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.

Half of Chinese car buyers won't shop Japanese over hard feelings

The hard feelings between China and Japan is no real secret. Besides modern-day disputes, the two countries have had a long-running enmity that dates back to well before the atrocities of World War II. All things considered, then, it shouldn't be a shock that half of Chinese car buyers wouldn't consider a Japanese car. This survey, conducted by Bernstein Research, found that 51 percent of 40,000 Chinese consumers wouldn't even consider a Japanese car – which, again, isn't really surprising, when you consider stories like this. According to Bernstein, the most troubling thing is the location of these sentiments – smaller, growing cities where the population is going to need sets of wheels. We imagine it wouldn't be as big of an issue in traffic-clogged Shanghai or Beijing, but these small cities are going to become a major focus for automakers. "Nationalistic feelings are an impediment. [Japanese] premium brands will struggle," analyst Max Warburton wrote in a research note, according to The Wall Street Journal. Things will improve for Japanese makes, although China will remain a challenge, with Warburton writing, "the one thing that comes out most clearly is that most Chinese really want a German car. While we expect Japanese brands to continue to recover market share this year, ultimately the market will belong to the Germans." There are a few other insights from the study. According to WSJ, Japanese brands are viewed better than Korean brands, and they're seen as more comfortable than the offerings from Germany or the US, despite the fact that everyone in China apparently wants a German car. This is a tough position for the Japanese makes to be in, as there's really not a lot they can do to win favor with Chinese buyers. It will be interesting to see how this plays out, particularly as the importance of the PRC continues to increase year after year. News Source: The Wall Street Journal - sub. req.Image Credit: Kazuhiro Nogi / AFP / Getty Images Honda Mazda Nissan Toyota Car Buying

Mazda recalls 193k CX-9 crossovers over corroded suspension

An issue with the suspension on the CX-9 has prompted Mazda and the National Highway Traffic Safety Administration to recall 193,484 vehicles across the United States. The campaign specifically affects units from the 2007-2014 model years, manufactured between October 24, 2006, and December 28, 2013. In those affected vehicles, the ball joints in the front suspension may corrode due to water leaking into the fitting. According to the statement below, if the ball joint rusts, the front lower control arm could separate, resulting in a loss of steering control. And needless to say, that could lead to a crash. To repair the issue, Mazda will have to replace both the left and right lower control arms, and will naturally do so free of charge, but will undertake the repairs in stages. First, owners of the affected vehicles will receive a notification that a recall campaign is under way. Then they'll get a second letter when the parts are ready and they can bring their vehicles into their local dealers. The company will start first with 2007-09 vehicles, specifically those registered in the snowy states of the Northeast and Midwest. Specifically: Connecticut, Delaware, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin, and Washington, DC. (Oddly, states in the the western portion of the Midwest, as well as the Rocky Mountains and the Pacific Northwest, were not included in that initial phase. Nor was Alaska, for that matter.) After that they'll call in 2010-14 models in the same states before undertaking repairs on vehicles in other areas to the west and south. Related Video: RECALL Subject : Corrosion of Front Suspension Ball Joint Report Receipt Date: JUL 20, 2015 NHTSA Campaign Number: 15V451000 Component(s): SUSPENSION Potential Number of Units Affected: 193,484 Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2007-2014 CX-9 vehicles manufactured October 24, 2006, to December 28, 2013. The affected vehicles have front suspension ball joints that may corrode from water leaking into the fitting. CONSEQUENCE: Over time, the ball joint corrosion may result in the front lower control arm separating from the ball joint, causing a loss of steering control and increasing the risk of a crash.