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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Next-gen Mazda MX-5 could use carbon fiber to cut weight

The current Mazda MX-5 Miata has only been out for a few years, but the automaker is allegedly looking for ways to lighten the next one. According to a report from Autocar, Mazda is looking to carbon fiber to help the next-generation MX-5 cut weight and use a smaller engine. Despite having more safety features, modern amenities, and a stiffer body, the current MX-5 is the same size as the original sports car from 1990 and weighs less than its immediate predecessor. In a recent interview with Autocar, Nobuhiro Yamamoto, head of the Miata program, revealed that the next generation of the Miata will probably stay the same size, but could be even lighter thanks to the utilization of carbon fiber. The current MX-5 uses high-strength steel and aluminum, and Mazda doesn't use carbon fiber in any of its cars. Carbon fiber is expensive to incorporate into road-going vehicles, and so Yamamoto notes that Mazda has been hard at work making it more affordable. A lighter car could result in a smaller engine, Yamamoto said. In the US, the MX-5 comes with a 2.0-liter four-cylinder engine that makes 155 horsepower, while the Japanese and European version comes with a 1.5-liter, 130-hp engine. A smaller engine would make the sports car even lighter. It's unknown at this time if the automaker is collaborating with another automaker or a supplier to make produce carbon fiber, or if it'll make it in-house. There's no word on how much carbon fiber the next MX-5 will wear or how it will affect the sports car's price. Autocar reports that the next MX-5 won't arrive anytime before 2021, which could make the ND MX-5's lifespan an unusually short five years long. With cars getting heavier, it's nice to hear that Mazda is working on finding a way to make its lightweight sports car even lighter. Related Video: News Source: AutocarImage Credit: Mazda Mazda Convertible Coupe Lightweight Vehicles

2018 Mazda MX-5 Miata finally has a great pair of seats

We all know the 2018 Mazda MX-5 Miata is a truly wonderful car. It takes everything delightful about cars and driving and distills it into a compact and lightweight package. It's a car anyone can enjoy. My wife, who until recently has shown no real interest in sports cars beyond their design, wants one. I want one, too, but I couldn't get past the Miata's terrible seats. For 2018, there's finally an alternative. The 2018 Miata got a number of minor updates. Most people I know were fawning over the new cherry-red top, but I was far more interested in the leather-wrapped Recaro seats. These are now included in the $3,770 Brembo/BBS package. Previously, that package just added a set of two-piston Brembo front brakes and black BBS wheels. Having put thousands and thousands of miles on various NDs, I didn't think it was really a worthwhile option unless you were planning to track the car regularly. These seats have changed my tune. The standard seats in the Miata are bad when new and get progressively worse as they break in. I'm a big guy (6-feet tall and about 220 lbs.), but I know I'm not alone in the assessment. They're thin, unsupportive and wrapped in some cheap fabric. Just look at this photo from our old long-termer. The seats kill any real desire to own one. These Recaros are different. Yes they're still thin, but they have bolstering and padding in all the right places. I no longer feel like I'm riding along on a cheap, worn-out couch. Plus, they're heated (though you can now get heated cloth seats), making the brisk Michigan-morning commute far more comfortable. Now all the Miata needs is a slight bump in power. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Design/Style Mazda Convertible Performance