Doom-Doom? Why Mazda Needs a Savior

To the casual observer, Mazda appears to be on a hot streak. The new 6 is great and just beat the Honda Accord in our comparison testing. The CX-5’s 43,319 sales in 2012—the highest for a Mazda crossover in nearly a decade—helped propel the company to its best year since 2007. The company expects 300,000 U.S. sales in 2013, a mark it hasn’t hit in almost 20 years, and in February, its stock soared 12 percent on increased 2012 profits, a huge gain after four straight years of financial losses.

Despite all this, Mazda’s future is wracked with uncertainty, a worrisome notion for those who love affordable fun cars. Mazda’s divorce from 30-year-plus partner Ford deprived the Japanese brand of critical economies of scale, greatly increasing its costs. And last year’s economic windfall was the product of a variable the company doesn’t control: currency fluctuation. Mazda made more money than expected in 2012 because of the weakening yen, which earned the company a greater return on the many vehicles it exports from Japan. If the yen’s value swings the other way, to the stronger position it has generally held the past four years, Mazda’s profits will suffer. Something has to change.