The Yen Falls, Mazda Profits For the First Time in 5 Years
Any regular readers know that I have a strong affection for the underdog Japanese automaker, Mazda. They may only be the 5th largest Japanese car brand, but in my opinion they make some of the most beautiful, best-driving cars on the market. And I’m not the only one who thinks that way.
So far, it’s been a very, very good year for Mazda. Over the past six months they’ve won numerous awards, most of which we’ve written about. The Japan Car of the Year award is probably the most notable, but they’ve won awards from Kelley Blue Books, Green Car Journal, and Fleet News Awards as well. They’ve also gained substantial recognition from Consumer Reports and JD Power, among others.
In fact, just last week the Mazda6 won the Red Dot Design Award on the back of Mazda’s new Kodo design language. A jury of 37 design and automotive experts all concluded that the Mazda6 demonstrates a “high level of design innovation and a bold stance,” crowning it literally the most beautiful car on the market. This is the most prestigious design award out there, dating back all the way to 1955.
Yet, even better than all these awards and recognitions, Mazda may actually make a profit in 2013 for the first time in five years.
Auto News reports that the Japanese yen has dropped like a stone over the past six months to a 3.5 year low of around 99 Yen to one US dollar. This is excellent news for Mazda Motor Corp. because they’re very dependent on exports having few manufacturing options outside Japan. For Mazda more than any other Japanese manufacturer, a drop in the Yen is an opening for profit.
And we’re not just talking small-time profits here either… Mazda won’t just eke out a few pennies’ from the weak Yen. Instead, Advanced Research Analyst Koji Endo is reported saying, “As long as the Yen stays at around 90-95 against the Dollar, Mazda’s profits could double in the fiscal year to March 2014.” That’s incredible!
You can imagine what this means for Mazda, who has worked so fervently to develop their two newest unique selling points – the SkyActiv technology suite and the Kodo design language. As a reward for their efforts, they have a very real opening here to set themselves up for consistent yearly profits off more than the back of a weak yen. If they can use this opportunity to bolster their export-based markets like the US, establishing a firm presence now will reward them for years to come.
It all depends on the new Mazda3 expected later this year. If the Mazda3 is as good as the Mazda6 and CX-5, it may have a real chance at contending with the likes of the Toyota Camry and Honda Accord. Here’s to hoping.
Whether or not you share my infatuation with Mazda, I hope you can at least appreciate an underdog’s success story. I know that Mazda still has a long way to go towards consistent profits, but now more than ever I believe they will get their dues, and I hope they do, too. I want to see new Mazdas on the market for years and years to come.
Thanks for reading!
PS – I’ll also point out that a weak yen makes now a very good time to look through our auctions too. Just sayin’.
