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Mazda posts $291M loss, losses expected to widen next year

05/13/2009, 10:39 AM

By Drew Johnson

Citing the global economic downturn, Mazda reported larger-than-expected losses yesterday for the fiscal year ending March 31st. The Japanese automaker also warned that 2009’s result would not be any better, already predicting a wider loss for next year.

According to Automotive News, Mazda reported an operating loss of $291.7 million. In comparison, the Japanese automaker posted a profit of $1.67 billion last year.

Mazda blamed the poor results on sagging global demand. Mazda sold 1.2 million cars globally last year, down 7.5 percent. Sales fell even sharper in the North American market – which represents about 25 percent of Mazda’s total sales – tumbling 14.4 percent to 347,000 units.

Although Mazda predicts the car market will see a slight uptick in the second half of the year, 2009’s fiscal year results will likely be far worse than 2008’s. Mazda expects North American sales to fall another 6.5 percent, dragging down the company’s revenue. In all, Mazda could report a net loss of close to $1 billion next year.

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05/13, 11:03 AM

posted by:

DetroitWatcher

Compared to Toyota, GM, and others, this is a pretty small loss (though Mazda is a pretty small company). I don’t doubt that the economic slump is hurting them, but some of their problems are self inflicted. I had an RX8 for two painful years… endured multiple recalls, engine flooding problems (had to get it towed to the dealer), crappy MPG, poor material quality, and ultimately horrid resale value. Needless to say, they lost the opportunity to turn me into a repeat customer.

Huh… I guess this is what GM and Chrysler did to people in the past.

05/13, 11:29 AM

posted by:

Borat

Well DetroitWatcher, you described good customer experience. Remember Ford Pinto? Was about same vintage as RX 8 in production (late 70’s early 80’s). Hell, Ford burned their customers! Complaining about GM and Chrysler, does not evoke tears in my eyes, I could been in flames!. And later with Firestone tires debacle, when the most popular SUV was turning over, but not in a good way. Those guys would love to be towed to local dealer in one complete piece.

05/13, 11:52 AM

posted by:

mayer_ray_nagin

I likeD Mazdas and had them high on my list for my next vehicle.

Then I was sideswiped with the full visual impact of their new design language and they lost me.
Add to that most of the write-ups for the new Mazdas are not that great (in that they softened them up quite a bit) to appeal to the soccer-mom set and the mileage on their new vehicles are sub-par and I’m gone for good until they regain their mojo.

Looking at the new products I almost think that Ford and Mazda did an engineer swap a couple years ago. Fords are turning out to be the superior vehicles.

05/13, 11:52 AM

posted by:

DetroitWatcher

RX8 was circa 2004.

Compared to Pinto, yes… RX8 problems are pretty small. But the reality is that after spending $33k on a car that gave me so much grief, I can only blame Mazda for losing me as a customer.

My comparison to GM and Chrysler was to illustrate that poor quality will cause customers to stay away, and in turn requires a lot of time before they are willing to return, even if the quality issues are put to bed.

05/13, 11:54 AM

posted by:

johnnycanuck

Borat, TURN DOWN YOUR RADIO! Those golden oldies are obviously triggering your retro synapses. What in the name of Felix Wankel does an RX-8 have to do with a Ford Pinto? I think you missed your RX by one!

05/13, 12:27 PM

posted by:

wbent

I absolutely love the myth of the Pinto by ignorant slobs who know nothing of actual facts. After the media hype died down it was actually discovered that the Pinto had less of a tendecy to “explode” than half of the competitors in its class. The Pinto still dominates 2.0L round track racing to this day. The Pinto engine, 2.3L was used until 1995 in a variety of products world wide.

05/13, 2:52 PM

posted by:

TomF

These Mazdas are good little cars. A lot of content for the money, more flair than Honda or Toyota.

05/13, 3:22 PM

posted by:

CajuRican

Looks like “zoom-zoom” is turning into “doom-doom.” Shame, too. I’ve owned several Mazdas. But given Mazda’s size (relatively small compared to other automakers), this isn’t surprising news.

05/13, 3:26 PM

posted by:

leftwingagenda

wbent, just a tip, your posturing and douchebagging really don’t do anything positive for anybody involved here and you should rethink why you feel so free to be an asshole online to people you’ve never met…i’m not going to argue facts, because what you said is fairly accurate (although i don’t know where you get the number that the tendency for pinto’s to explode was less than half the competition…that number sounds like you pulled it out of your ass)…but seriously, there are better ways to have a conversation than to immediately declare people ignorant slobs that know nothing…you will never, ever, ever win people over to your side of an argument that way…

so what you’re doing is taking an opportunity to bring an intelligent point to the conversation, and instead of presenting it in a meaningful way, you just simply piss all over everything, ruining any chance folks have to learn something…good job…this is a classic example of why people need more accountability for what they post on the internet…and i hope to god you don’t work in a field where communication is important…and i also hope you don’t represent our country in any respect with that attitude…

05/13, 5:13 PM

posted by:

Borat

Leftwy, I think there is an element of truth in what wbent stated. That famous 2.3 L 80+ horsepower motor was motivating everything in Ford’s stable: from Mustang to Zephyr (what a beauty that was!). The rest is piss and vinegar.

05/13, 5:30 PM

posted by:

wbent

Facts are facts 3000 people a year in the 1970’s died from vehicular fires and 500 of 15,000 deaths of those from 1971 to 1976 died in Pinto’s. The issue was Iaccoa insistence on cost and weight and the lack of rear end collision standards. The Pinto met all regulations of the time, corporate greed defined the Pinto.
Talk about pulling things out of your ass…..Lefty and Borat the Toygasmatics…..wow kind of the kettle calling the pot black

05/14, 1:16 PM

posted by:

teahead

DetroitWatcher, just b/c you got suckered into a POS Mazda JAPANESE car, don’t start bashing GM and CHrysler.

Give me any year 200+ CHrysler car and it will have VERY FEW problems unlike your POS.

I have two 2006 Chryslers with ZERO problems!

 
 
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