Mexican Media Brands
Mazda Predicts 20% Drop in Operating Profit
Mazda Motor Corp. says an upswing in spending for technology and U.S. sales expansion will shrink its operating profit 20% to 110 billion yen ($1 billion) in the fiscal year that began this month.
#economics
Share
Mazda Motor Corp. says an upswing in spending for technology and U.S. sales expansion will shrink its operating profit 20% to 110 billion yen ($1 billion) in the fiscal year that began this month.
The downturn will be Mazda’s first in two years, The Nikkei observes. The newspaper says the company’s anticipated small increase in unit sales to 1.65 million vehicles this year won’t be enough to offset increased spending on electrified powertrains, vehicle connectivity features and self-driving systems.
Mazda also is growing its U.S. dealer network. The move anticipates sales growth fueled in part by the factory it plans to open with partner Toyota Motor Corp. in Alabama in 2021. The plant will split its 300,000-unit annual capacity equally between the two companies. Mazda will use the facility to launch a new crossover vehicle.
RELATED CONTENT
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
On Global EV Sales, Lean and the Supply Chain & Dealing With Snow
The distribution of EVs and potential implications, why lean still matters even with supply chain issues, where there are the most industrial robots, a potential coming shortage that isn’t a microprocessor, mapping tech and obscured signs, and a look at the future
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.