Mazda could sell SkyActiv technology to ease financial strain

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By Tim Beissmann | February 15th, 2012

The boss of Mazda is looking to strike partnerships with other global manufacturers to rescue the embattled company from its worsening financial situation.

The Japanese manufacturer last week forecast a net loss of 100 billion yen ($1.20 billion) for the financial year ending March 31. The horror year – not helped by the after-effects of last year’s Japan earthquake and tsunami disaster – is set to be the worst for Mazda in 11 years, and the company’s fourth successive annual loss.

Despite Mazda’s success in Australia – where the small-sized Mazda3 became the country’s top-selling car and the brand’s market share increased from 8.2 per cent to 8.8 per cent – it endured a tougher year globally, with sales dipping two per cent to 1.25 million vehicles.

Mazda CEO Takashi Yamanouchi told industry journal Automotive News he was “considering every option” to generate more capital for the business.

Mazda invested much of the $1.13 billion it received through the sale of shares in 2009 into developing its SkyActiv range of fuel-efficient engines and lightweight body and chassis components.

Yamanouchi says he is prepared to sell SkyActiv products to other manufacturers in order to get the company back in the black.

In a situation all too familiar to Australia’s local manufacturers, a strong domestic currency is making exporting vehicles from Japan less economically viable than before. Mazda builds a higher percentage of its vehicles in Japan than any other manufacturer.

Mazda is currently building a factory in Mexico to assemble the Mazda2 and Mazda3 for North and Latin America in an attempt to decrease its production costs.

Guest

so i guess only the aussies are mazda fans huh

Guest2

Coz mAzdA has 2 A’s.
AppleFanBoi

so i guess only the aussies are mazda fanbois huh
AppleFanBoi

so i guess only the aussies are mazda fanbois huh
Anonymous

Because Sam Kekovich promotes them…

At least the Max Kerwin dealership…
filippo

On the roads of Europe you see more Porsches than Mazdas.

FanBoi

Japanese cars in Europe is as cost as much as some premium European brands such as audi, volvo, BMW etc. No wonder Japanese cars don’t sell in Europe. Honda is another example. (I live in Europe)

Guest2

Because of the protection against non-Euro cars in those European countries. They put quotas on those non-Euro cars and slap big taxes on them. That’s the reason why the French and other European car companies are still around.

Anonymous

We didn’t always used to be. Back in the 80s Mazda was nearly dead in the Australian market – even Honda outsold them once. However, back then there were import quotas, and Mazda was a 100% importer, like Honda, so they were very limited in the number of cars they could sell. The abolition of import quotas really helped Mazda, Honda, and Hyundai.
Sydlocal

Guest, the Mazda3 is also quite popluar in Canada and normally not far from the top of the sales charts. However that is about it for the rest of the world.

Showtime

Mazda would need a premium brand to compete in the USA, much like Toyota, Honda and Nissan did.

http://twitter.com/jackkl Jack

In the global auto market, Mazda are a really, really small player. They don’t have the scale to create new brands again – in fact it was the creation of luxury/alternative brands (Efini, Autozam, Eunos) that brought Mazda to its knees in the 80s and 90s. Mazda is also still somewhat reliant on Ford when it comes to development, and that extends to Mazda’s global dealer network and production outside of Japan (especially in their shared North American plants) – something Ford has historically crippled.

Tlaxcala

Efini and Eunos were only ever marketed in Japan, did they really have that much of an impact on Mazda?

http://twitter.com/jackkl Jack

Sorry, poor wording. It was a number of factors. Ultimately, though, it was a very small car company trying to do too much: with astronomical development costs (especially from Wankel rotary development), not justified by their modest sales.
Adelaide_john

Eunos was sold in Australia in the 1990′s

bd

Madza has barely enough sales in the US to keep its present dealerships afloat.

Also, Mazda doesn’t have enough $$ to develop its next generation of platforms so I hardly think spending a couple of billion to launch a separate luxury brand in the US would be a possibility.

Plus, Infiniti and Acura haven’t exactly been huge successes for Nissan and Honda recently (which is why Ghosn has looked at every opportunity to lower development costs for Infiniti such as pairing up with Daimler).

Snap

Last month Mazda sold 23,996

Volkswagen sold 27,209

In U.S

So considering how big Volkswagen likes to think they are, their sales numbers in U.S.A are terrible..

http://twitter.com/jackkl Jack

Fortunately for VW, the US isn’t the world.
Unfortunately for Mazda, the US is the world.
Springvale Boi

Volkswagen Group sold 2.26 million cars in China in 2011.

FanBoi

Yes, maybe you should include those old VW platforms from the 80s and 90s that Chinese have bought and are still producing and selling today.

Reaper

They did Showtime, it was called Eunos, it didn’t work then & it wouldn’t work now

marc

mazda is very small player in the global sense… and its seems if they dont find a partner soon they’ll vaporize… volvo would be a good partner for Mazda… Ford and Mazda are still tight up… although SkyTech is nothing revolutionary and in the sense of bettering fuel economy is more like a joke…

bd

Volvo’s Chinese owners are looking for a partner, but I’m not even sure the 2 pairing up would be enough compared to latching on to one of the big boys and bumming off platforms like what Mazda used to do with Ford.
camaro

if you say it’s like a joke why Holden cant do such a thing? it is really that easy? saving fuel isn’t all that hard but make it affordable is another story bud.
Sydlocal

So marc are you saying a 20-25% plus improvement in fuel economy for the same capacity engine with similar power and torque in the same body etc a joke? The ADR testing shows the Skyactiv engine reduces fuel consumption in the Mazda3 by over 2L/100km (comparing automatic to automatic). In “real world” driving in a comparison test the Mazda SP20 returned better fuel economy than the 1.4L Golf and Cruze over the same type of driving with a mix of highway any city driving. That also still leaves Mazda the option down the track (if they still exist!) to turbo charge the engine like VW etc for even more fuel economy gains.

Plus Mazda have never said the Skyactiv engine is anything revolutionary. I have heard them call it an evolution of what is currently out there and IMHO that is a fair assessment.

Jerrycan

I had not heard about the comparative fueld consumption results but it does not surprise me.
A small turbo charged engine gives good power and good fuel economy potential, just not at the same time.
A WRX and Clubman have similar performance and fuel consumption when pushing on.
Improved fuel combustion (skyactive) should give better economy results in real life.

but I don’t think that adding a turbo to an engine with a 13 or 14 to 1 compression ratio engine is actually viable.

Guest2

So which part of the SkyActiv “technology” do they intend to sell?

Direct injection ”technology” : Everyone knows how to do it

Start/Stop “technology” : Everyone knows how to do it

Turn off the aircon when SkyActiv stops the engine ”technology”: It’s not hard to implement this.

Efficient Gearbox “technology” : Just buy the efficient gearbox off the shelf from those gearbox companies like Aisin, Jatco, Getrag, ZF, Borg Warner, etc. Even Mazda don’t make their own gearbox.

Richard

It took Mazda far too long to bring its “skyactiv” to market. Fiat/Chrysler will have a 9 speed auto available for their medium cars. VW’s next golf (12 months time) will be 75-100kg lighter than the current one (see, Mazda, not hard to do). VW have 4 cylinder engines with stop/start and cylinder deactivation already appearing in Audi models.

Their diesel (2.2L) is too big for the Euro market (ask Honda and its 2,2L) and the yanks don’t really want them. The euros don’t want their 2L skyactiv and nearly every competitor in the US market now has a car that matches the Skyactiv consumption figures.
Desmo

How about the diesel that has a 14:1 compression ratio, which means lighter internals, which results in a 25kg lighter engine, that revs harder, runs cooler, which means better combustion, so less fuel, has less lag….have you actually looked at the tech, lots of assumptions, not many facts.

No,the ideas are not revolutionary, but it does cost real money to develop and get right. By purchasing it from Mazda, other manufacturers can access the technology for less and sooner. This is especially the case for Chinese manufacturers…

Sydlocal

Just to add to that Desmo how many mainstream passenger car petrol engines have 14:1 compression ratio? Plus Mazda’s start-stop has been found to be quicker and more efficient than most of the others out there due to the way that it works. It controls the position of the pistions when the engine is stopped, then uses the combusion/ignition process to start it again and hence doesn’t rely on the starter motor alone saving the extra stresses on the starter and electrical system. That is why it’s start time is cleaner and quicker than most.
Jerrycan

And the diesel conforms with Euro 6 standards without particulate filter and NOx standards without Urea injection.
And it is able to rev beyond the conventional diesels asthmatic 4500 limit (apparently).
I think that makes for a pretty convincing package.

Bozzscaggers

maybe they can sell the ugly grilles back to peugeot?
Doctor

As much as I hate to say it, Mazda needs a Chinese or Indian partner.

http://profile.yahoo.com/NKSGPC5SGNSGQ7GSEGIKUP3OUI __A_YAHOO_USER__

Mazda
and Suzuki should merge – to creat Mazuki They would have the best of both worlds.. and be in the motorbike game also!

Guest2

Suzuki (just the car division only) is bigger than Mazda.

Sydlocal

Pretty much all Japanese auto manufacturers are bigger than Mazda!

Springvale Boi

Mazda could sell their no sound deadener sheets needed technology. Saves weight and 0.1L of fuel.

Sydlocal

LOL. Good call!

Jayjay5150

yea they built those cx9 and cx7 for the american market but they seem to keep away from them,thats what i heard.
Neutralman

Japanese and Europeans won’t get it until each of them get broke. Learn from Koreans: Good cars in cheap price.

Geoh

Cheap? Yeah in U,S market the Koreans have very good quality to price ratio with very good warranty etc

In Australia you might as well go with a Jap car, relatively higher quality and same price..

http://www.facebook.com/antmindel Anthony Mindel

It fascinates me how popular they are here,and how rare they are overseas.
Was in South Africa last year,and it stuck out that there were VERY few Mazdas on the roads
Guest

mazda, like VW is a triumph of marketing over product

they will go the way of honda

and not a single f*** will be given except those susceptible to ‘zoom zoom’ advertising

the reality is skyactiv is worthless, especially in markets with poor quality petrol… toyota and nissan for example have technology that the Germans actually want and are happy to form partnerships with

skyactiv has to be modified severely to the point that there are no real advantages to work on say 91 ron/87 mon gasoline

if mazda have got to this stage where they have to sell tech to pay down debt… what kind of situation is that? its certain not good

Jerrycan

I think you are being a bit hard on ‘skyactive’ technology, as it does seem to deliver!
Mazda derated the compression ratio for the SP20 sold in Australia from 14:1 to 13:1 to run on 91 octane and have achieved really impressive improvements (and they needed to).
Australia has some of the worst petrol available, sulpher levels are still relatively high despite improvements in recent years.
91 octane is relatively rare overseas, Nearly all imported cars from Euro and even India require 95 octane (Suzuki Alto) and no effort is made to meet our lower standard and cheaper fuels.

I am surprised that Mazda are as popular in Aus as they are.
Good cars, but not outstanding.
A reputation for reliability and good resale, but the over frequent 10k service intervals are cripplingly expensive.
Mazda in Australia obviously have a better marketting dept that is better than Ford, which would not be hard.

http://profile.yahoo.com/NKSGPC5SGNSGQ7GSEGIKUP3OUI __A_YAHOO_USER__

Serviced my Mazda3, 3 times at a cost of $230 each time (full price mazda dealer service)… not sure what your talking about…!

My friend with his cold spends about $800 each service /15,000k still works out much much cheaper to spend $230 with a mazda each 10,000k

Jerrycan

Your “friend with his cold”? “$800″ every service?
I cannot work out what brand or model that “cold” is?

http://profile.yahoo.com/NKSGPC5SGNSGQ7GSEGIKUP3OUI __A_YAHOO_USER__

Sorry, typo.. that was ment to be golf

http://profile.yahoo.com/NKSGPC5SGNSGQ7GSEGIKUP3OUI __A_YAHOO_USER__

Everything you stated is completely wrong…

Mazdz3 maxx sport 2.0L engine 5 speed Auto 8.2L/100k on 91/ron petrol
Mazdz3 SP20 2.0L engine 6 speed Auto 6.5L/100k on 91/ron petrol

And the SP20 only has the engine and tranni skyactive tech.. not the other list of goodies like regenative breaking ext… that would bring its 6.5 to maybe under 5L/100k

The CX7 Petrol Auto uses 9.4 litres per 100km
The CX5 Petrol Auto uses 6.5 litres per 100km ( with full skyactive technology. And the CX5 is a LARGER SUV with more space inside.

FYI – a 1.3L Yaris, 1.4L Nissan Micra and 1.3L Honda jazz all use 6.5L/100k .. gutless small cars using the same amount as normal sized Hatch and SUV … i wouldnt call skyactive useless at all

Guest

you have to compare like to like

micras and jazz penalty boxes use SOHC ancient motors with none of the modern ameniites and are a class below

you will find that Skyactive is no better than GM’s ecotec 1.4 or the upcoming Focus ecoboost 1.6…

Sydlocal

So you can’t compare a NA SOHC 16V engine to the larger, more efficient NA DOHC 16V Skyactiv when it comes to fuel consumption, but it is fine to compare it to the smaller capacity turbocharged engines? How does that work…

If they can get the same, if not better fuel economy out of their larger NA 2L than a turbo 1.4 with all the bells and whistles, imagine how much better again they would get if they turbocharged a 1.4L version of that 2L Skyactiv? Sure it is nothing revolutionary and I don’t dispute that at all, but you can definitely call it an evolution of current thinking. At least Mazda went back to the drawing board and optimised what concepts are available from the ground up rather than just bolting on DI and a turbo like all of the others. It also gives them the option down the track, if they are still around that is, of adding a turbo to a smaller capacity like everyone else seems to be doing at the moment to obtain even better economy. An option the others don’t have without a complete re-design that Mazda have already done. They have just done it the other way around.

Oh BTW, the VW 1.2 that is available in the same class Golf is even more ancient again as it is only an 8V SOHC. All they did was bolt on DI and a turbo. Nothing ground breaking there. Still quite effective, but nothing special.

Sydlocal

Regenerative breaking? I thought Mazdas were reasonably reliable… TVFPIC

I agree with everything you are saying except that the CX5 is externally smaller than the CX7, it is just that the packaging is much better which means it has more space on the inside except for width.

http://profile.yahoo.com/NKSGPC5SGNSGQ7GSEGIKUP3OUI __A_YAHOO_USER__

yeah i didnt think much about what i was typing.. they break but regenerate so they last longer lol

doctor

Ford has done very well to get rid of loss making partner/ownership.

Jerrycan

Most other brands that Ford disposed of have done better without them especially Volvo and Jaguar / Land Rover.
The Japanese disasters and Thai floods would have impacted Mazda harder than anyone else though due to their small size.
Mazda tend to do their own thing, but do not always make the right decisions.
They should have given the rotary engine away years ago.
Their ordinary IC engines to date have been pretty average for performance and economy but their chassis and handling talents are relatively good, even outstanding (MX5) but are not qualities that sell well in the States. They prefer them big and soft.
Aussies seem to be more appreciative of good handling and simplicity and reliability that Mazda offer and which has been missing in most other brands for their sized vehicles.

I quite like it that different brands offer different options to users.
It would be pretty boring otherwise.

Ozmazda

and now they offer a new SUV CX5 bragging about their new sky diesel and what do we get a boring lazy auto with no manual option…..Mazda you have lost the plot…