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Premium design and diesels: Mazda may be the next VW

At the Chicago Auto Show, we had a chance to sit down with Jacob Brown, a Mazda PR representative, and Jacques Flynn, a lead exterior designer at the company, to talk about design and where the company is going. One of the themes of our discussion was the company's desire to move its lineup toward a more premium, upscale feel and image – both in terms of vehicle design and powertrains. We realized the company may be looking to take a page from Volkswagen's American playbook, positioning itself as a prime purveyor of affordable, upscale – and most importantly, fun to drive – automobiles. In the case of design, Flynn talked about how Mazda's KODO design language is going to evolve; that the goal is to simplify and refine the look. We discussed the CX-5 as an example of this evolution. Flynn pointed out that the goal was to add more refinement and simplicity, and showed how Mazda achieved this on the CX-5 by straightening the curves from the previous model to give it more visual length and a more taut shape. The grille also was given more depth and detailing, which isn't simplified per se, but does provide a more premium look. View 9 Photos Mazda's upcoming diesel engines are another piece to Mazda's premium puzzle. The company will finally offer a diesel on the CX-5. While Mazda planned not to use urea-injection, it finally resorted to the system so the engine could both meet performance benchmarks and emissions standards. In addition to the efficiency of the engine, Brown said that diesel engines have a premium nature for buyers. This is due in part to the luxury automakers that mainly offer them in the US, such as BMW and Mercedes-Benz, and to the fact that the technology will add some cost to the product. If all of this sounds familiar, it's because you know these characteristics used to describe Volkswagen: a company known for upscale, affordable cars, providing great driving dynamics – and formerly, for efficient and fun-to-drive TDI diesel engines. While we didn't touch on the driving experience of modern Mazdas in our interview, you can simply look at any of our reviews to see that we generally like what the company builds. The only downside is that we may have to wait a while for some models, and others may never show up here. Brown and Flynn both said that the Mazda2 is unlikely to be offered in the US as anything other than the Toyota Yaris iA, since it's hard to convince people that a subcompact is premium. No surprise there.

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.

Asian automakers still reluctant to use more aluminum

There's a logical progression of technology in the auto industry. We've seen it with things like carbon-ceramic brakes, which use to be the sole domain of six-figure sports cars, where they often cost as much as an entry level Toyota Corolla. Now, you can get them on a BMW M3 (they're still pricey, at $8,150). Who knows, maybe in the next four a five years, they'll be available on something like a muscle car or hot hatchback. Aluminum has had a similar progression, although it's further along, moving from the realm of Audi and Jaguar luxury sedans to Ford's most important product, the F-150. With the stuff set to arrive in such a big way on the market, we should logically expect an all-aluminum Toyota Camry or Honda Accord soon, right? Um, wrong. Reuters has a great report on what's keeping Asian manufacturers away from aluminum, and it demonstrates yet another stark philosophical difference between automakers in the east and those in the west. Of course, there's a pricing argument at play. But it's more than just the cost of aluminum sheet (shown above) versus steel. Manufacturing an aluminum car requires extensive retooling of existing factories, not to mention new relationships with suppliers and other logistical and financial nightmares. Factor that in with what Reuters calls Asian automaker's preference towards "evolutionary upgrades," and the case for an all-aluminum Accord is a difficult one. Instead, manufacturers in the east are focusing on developing even stronger steel as a means of trimming fat, although analysts question how long that practice can continue. Jeff Wang, the automotive sales director for aluminum supplier Novelis, predicts that we'll see a bump in aluminum usage from Japanese and Korean brands in the next two to three years, and that it will be driven by an influx of aluminum-based vehicles from western automakers into China. Only time will tell if he's proven right. News Source: ReutersImage Credit: Sean Gallup / Getty Images Plants/Manufacturing Honda Hyundai Mazda Nissan Toyota Technology aluminum