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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.

Junkyard Gem: 1991 Mercury Capri

Ford has gotten a lot of use out of the Capri name in the United States. First, there was the Lincoln Capri in the 1950s, followed by the Ford Capri Mk1 (which was sold by Mercury dealers in the USA but never actually badged as a Mercury). Then came the 1979-1986 Mercury Capri, built on the very successful Fox Platform and essentially a clone of the Mustang. Finally, in 1991, the Australian Ford Capri came to the United States. Here is an example of this rare car that I spotted in a Northern California self-service yard not long ago. Mechanically speaking, the 1991-1994 Capri was a Mazda 323 under the skin, complete with a member of the same B-series engine family that went into such cars as the Miata and Ford Escort. So, for a few years in the early 1990s, car shoppers who wanted a sporty Mazda convertible could choose between a Miata and a Capri. The Capri had front-wheel-drive, but could be had with factory turbocharging. These cars were reliable and fun, but had a tough time competing with the Miata in the showroom battles. You'll see the occasional example now and then, but most of the 1991-1994 Capris have met the same fate that awaits this one. Related Video:

Takata airbag recall spreads to China with 42k Mazda sedans

The scope of the problem with the faulty airbag inflators from Takata continues to broaden and is now reaching China, as well. Mazda is recalling 42,732 Mazda6 units there, produced by its local joint venture partner China FAW Car Company, to replace the front passenger airbags. It comes as part of Mazda's recall of nearly 160,000 vehicles worldwide, including about 34,600 in the US, according to Reuters.
This is the same problem that caused seven automakers in the US to recall an estimated 2.1 million vehicles in late June. The airbag inflators can potentially explode instead of deploying the airbag, which hampers the bag's inflation. In some cases occupants are also hit by the metal shrapnel, which can cause further injuries. In the US, Mazda is repairing the 2003-2007 Mazda6 (pictured above), 2006-2007 Mazdaspeed6, 2004 MPV and 2004-2008 RX-8 originally sold in or currently registered in Florida, Puerto Rico, and Hawaii.
This is hardly the first instance of this issue. Since 2001, there have been 20 recalls tied to the exploding airbags supplied by Takata. The problem is possibly linked to the propellant in the inflators, but there's no conclusive evidence of that yet. Most of the automakers in the US limited the most recent recalls only to a few humid states because moisture potentially exacerbated the problem.