Mazda reported a hefty 62 percent drop in profits over last year in the second quarter of 2007, although the company still made $20.9 million. Mazda did say that the drop was within their expectations and that the carmaker, which is 33 percent owned by Ford Motor Company, expects to be profitable for the year.
Mazda blames the drop in profits on research investments and foreign exchange rates. The carmaker saw a 6 percent increase in sales in the U.S. market, but a 7 percent drop in its home market of Japan. Still, Japan is a much smaller market, so sales were up worldwide over the same period in ‘06.
Mazda says that it expects ‘07 to be a record profitable year, despite the second quarter drop over ‘06. Mazda expects to sell 4 percent more cars globally in ‘07 than it did last year.
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07/31, 11:41 AM
posted by:
CTS DRIVER
WOW GO FIGURE THE JAPS ARE BLAMING EXCHANGE RATES FOR THEIR LOSSES, THATS THE WHOLE REASON THEY MAKE A PRIFIT IN THE FIRST PLACE, DAMN CRYBABIES.
07/31, 11:51 AM
posted by:
CTS DRIVER
profit
07/31, 11:52 AM
posted by:
Me
Yeah, well at least they aren’t blaming lack of sales, import taxes, emissions standards, employee healthcare costs and the like. The difference is, they have good product that still sells. There’s little they can do about the exchange rate.
07/31, 12:18 PM
posted by:
JoshL
“Yeah, well at least they aren’t blaming lack of sales, import taxes, emissions standards, employee healthcare costs and the like. The difference is, they have good product that still sells. There’s little they can do about the exchange rate.”
Amen to that…
07/31, 12:25 PM
posted by:
jJayC08
Just to let you know, CTS Driver, a majority share of Mazda is owned by Ford, and they share a lot together (platforms, engines, parts, etc.).
They can’t do anything about the exchange rates in the first place.
07/31, 12:36 PM
posted by:
jackjimturkey
Hope sales keep tanking so I have them at a disadvantage in late September
07/31, 1:05 PM
posted by:
sunshine1810
I have disliked Mazda over the past few years. Their cars are ugly and very uncomfortable not to mention poorly built.
07/31, 1:14 PM
posted by:
HoosierHero
I disagree sunshine, I think Mazda has been one of the brightspots in North America. Their cars are not mundane like Ford or GM/Chevy/Pontiac, etc., and offer a good line-up. But as the article said, Japan is a small market, and they expect RECORD profits. Doesn’t sound like they are going anywhere real soon.
07/31, 1:17 PM
posted by:
CTS DRIVER
yup jay 33%, and its the only reason the fusion is halfway decent too. which exchange rate gets them, china, india, or eastern europe?
07/31, 1:21 PM
posted by:
jackjimturkey
Hoosier:
I agree
07/31, 1:23 PM
posted by:
RicardoHead
Guys, companies can definitely do something about exchange rates. If your growth market is the USA and you don’t want to suffer the exchange rate effects, you invest in additional manufacturing here to cover most USA needs and develop a business model here that generates a profit on that manufacturing. That way the only effect exchange will have is on the translation value of the USA profit.
Right now Mazda builds I believe only the 6 in the USA (and a couple Tributes and trucks). The bulk of their units are in 3’s, plus they are building for whatever reason their big ticket crap like CX7s and CX9s in Japan, so if those are moving at a loss it’s Mazda management’s fault. Those things could have shot out the side doors of domestic US Ford factories and alleviated the issue. Bad call, but they gotta keep their “lifetime employees” busy.
07/31, 1:30 PM
posted by:
jJayC08
Wow, another half minded comment by sunshine 1810… Seriously, I mock you almost every post, and yet you still come out with some of the most biased comments ever.
Have you ever sat in a Mazda? I have, I’ve sat in the MPV, Mazda 3 and 6. They were all nice cars, inside and out.
My friend currently owns a Mazda 3 hatchback, and they love it- great on gas, and from what I know they haven’t had any serious issues with it.
The MPV was an alright car, more reliable than the other minivan offerings one of my friends had tried. They recently traded it in for a Toyota Highlander, which they now regret.
The Mazda 6 was very comfortable, it didn’t absorb potholes very well but there was little vibration or noise- same goes for the Mazda 3.
Most people consider Mazdas cars the best looking sedans and hatchbacks out there- but that’s based on opinion.
07/31, 1:33 PM
posted by:
CTS DRIVER
mazda is my favorit japaneese car company, i think they look great.
07/31, 1:43 PM
posted by:
jJayC08
That’s true Ricardo, but what happens to all that surplus production overseas?
-The Mazda 3 is built in Hofu, Japan.
-The Mazda 6 is built in Flat Rock, Michigan (I believe)
-The Mazda CX-9 is built near Mazdas headquarters in Japan, BUT alot of the parts, engineering and equipement come from America. Same applies for CX-7.
All their other products, like the Tribute and B-series, are built in the United States, and so are most of the major components (such as Mazda’s 4 cylinder “MZR” engine, which is based off the Duratec, the “Z” engine, and “MZCD” engine. Virtually all of their V-6 engine designs are based off of Fords, and many other major components are Fords too). So virtually all that’s built in Japan is the architecture and a few minor/major components.
07/31, 2:48 PM
posted by:
1487_GM_SALES
Well gee, if their cars weren’t trash then things would be different otherwise.
The CX9 is stillborn next to the awesome new Lambdas. Sales have shown it and GM is opening a third shift just to keep up with the high demand. The CX-9 is ready to be cancelled due to sagging sales to those who can;t afford a Lambda
The CX7 is a POS Turbo that nobody buys when you could buy a NA 260hp Equinox or Pontiac Torrent for the same money
The Rotary engine is a bad idea. Unreliable, oil burning POS.
The Solstice and the Sky destroy the Miata in performance and looks. 19 inch rims compared to the Miatas piddly 16’s. But the Miata is for girls and they don’t really care anyways
The Tribute is dead
The Mazda 3 is not the new car anymore. Fierce competition from the Cobalt and the G5 on the low end and the G6 on the high end have drowned out whatever excitement the 3 supposedly had (with its cheap crappy interior and noisy ride and interior)
This is nothing new. Pontiac and Chevrolet have been eating Mazdas lunch for a while. And with Fords current financial woes, it’s not surprising to see yet another Ford offshoot in the toilet. Maybe Ford should find their own American Revolution if they have any fight left in them.
07/31, 4:04 PM
posted by:
TOZO
$20.9 million made this quarter by Mazda, but Ford still managed to squeeze $81 million out of Mazda that contributed to Ford’s Q2 profit. Ford works in mysterious ways, and Mazda… Mazda’s gonna have to work a little harder.
07/31, 5:04 PM
posted by:
CTS DRIVER
WHO THE FRICK UNCHAINED 1487 GM SALES FROM THE BASEMENT?
07/31, 6:05 PM
posted by:
LuckyLou
I think Mazda is making great rides these days. I drove a 3-sport just months after purchasing my ‘04 TSX and I thought “hmmm, this woulda done just fine” What I’m saying is they’re decent driver’s cars for a decent price, IMO.
07/31, 6:36 PM
posted by:
badmojo
I don’t know. I like the Solstice and the Vette, but guys like him just make GM look bad.
So I’ll stick with my RX-8, which burns maybe $5 worth of oil every two months and has been perfectly reliable, despite the fact that I run it up over 9000 RPMs every day. Some day I’ll go take a look at a Z06, run into a guy like 1487_GM_SALES, and drive home in a 997.
07/31, 7:53 PM
posted by:
DaHarder
Having recently seen the 2008 Mazda6 sedan roaming the streets of Las Vegas, and participated in a ‘clinic’ where a vehicle destined to replace the RX-8 was shown (yes, it carries many design themes from both the Kabura and Ryuga, and even features a 1 + 2 seating arrangement very much like the McLaren F1)…
I’d say Mazda’s future looks very profitable indeed!
07/31, 8:07 PM
posted by:
Htay5500
get a grip gmsales. its pretty dumb and ignorant to bash about a certain car w/o making any attempt to try it out. till then, your comment is complete bull until you’ve tried it.
07/31, 8:50 PM
posted by:
Htay5500
and gmsales, they arent trash. the interiors in pontiacs and many chevy cars are. are you retarded or can you not read? theyr only going deep due to foreign exchange contracts and research investments. its in the damn article! it quotes “The carmaker saw a 6 percent increase in sale in the US market”. am I wrong?
07/31, 9:57 PM
posted by:
Deanster
I hate LLN for doing this ****.
This business of reporting on financial minutiae, like 5 or 6% losses or 7% profits over a single quarter of the year is just astoundingly stupid.
Save the news for when something astonishing happens, like Ford bleeds 12 BILLION or Volvo finally gets bought for 20 BILLION.
07/31, 11:33 PM
posted by:
///m
This is a stupid article to begin with
08/01, 12:07 AM
posted by:
Rompn4x
Mazda’s aren’t ugly… My 6 is hot
08/01, 7:27 AM
posted by:
1487_GM_SALES
Mazda 6 is a riced out Fusion. The new Malibu will stomp it in the fall if the Saturn Aura hasn’t already. And if want something a little sexier than those two, check out the G6. But don’t settle for some POS Mazda
And badmojo, a car in 2007 should not burn any oil. 5 bucks is still 5 bucks. Think about it, you bought a car that’s slower, uglier and higher maintainence than a Pontiac G6 GXP. Don’t bother defending it because your wasting your time. Everybody knows Mazdas have been crap since they became Fords.
08/01, 7:59 AM
posted by:
WEKS
No no, the Fusion is a riced out Mazda6.
08/01, 8:19 AM
posted by:
Htay5500
wtf are smoking?
the G6 looks very fat, bulgy and cheap to drive. not to mention its interior and the safety ratings on the convertable. and oh wait; ITS FWD!! who the hell would choose a family car over an RX8 if theyre looking for performance!? I’d rather get a mazda 6. My best friend has one for its daily and its a blast to drive.
08/01, 8:34 AM
posted by:
jackjimturkey
GM sales: I drive an oldsmobile now, and it’s great.
But you need a shot of reality.
1) a car can be a POS or a Mazda, but not both — I owned a Mazda, and will buy another, BECAUSE THE GENERAL DOESN”T SELL THE ZAFIRA HERE.
G6 is the descendant of the grand am, the ultimate rental car (have someone explain why of all cars that size, the grand am has the highest percentage of 1986 models still running)
it’s a little bit more exciting (and a lot better) than a camcord, but the 6 — despite rthe crappy name — is a more noticeable car.
Yes, the aura is great, but so is the 6
Htay:
Safety Ratings only matter if you crash
08/01, 8:59 AM
posted by:
1487_GM_SALES
You idiots enjoy your POS, I’ll be one of those folks who will be laughing at you when you are stuck on the side of the road because your Fords, oh wait Mazdas have left you stranded yet again.
08/01, 9:17 AM
posted by:
HoosierHero
I would enjoy a Mazda in an American Heartbeat compared to a POS Saturn. WTH feels good in a Saturn?? You are right about some of their models being dated, but you’ve no doubt seen the work that they are doing on their line-up like the Mazda6. The Mazda3 is still selling well, so why re-invent the wheel totally? As for the totally overpriced larger SUVs, screw ‘em all!
08/01, 9:29 AM
posted by:
1487_GM_SALES
“WTH feels good in a Saturn??”
How about a class leading interiors for one? Even an idiot can see the cheap crappy interior materials that Mazda uses. Or the best V6 in the industry with the 3.6? Or the precise, accurate reflexes of the chassis?
Fact is the Aura is one of the best handling front drivers on the market behind the award winning Pontiac G6. Mazda6 is a slug in comparison.
And look at the MX-5 and RX-8. Both are slow, don’t handle nearly as well as the GM counterpart and the RX-8 is a maintainence nightmare. Not to mention it’s just ugly. The MX-5 only sells because the women like them, while most people in general prefer the Solstice and the Sky for their attributes rather than “cuteness”.
There is nothing about Mazda that would make me want to choose one over a superior GM product.
08/01, 9:37 AM
posted by:
Htay5500
saturn aura is a souped up opel vectra from germany. it also uses cheap materials. go to wikipedia and type in the aura. you think miata doesnt handle well. the miata is the best selling sports car in the world and its praised by many enthusiasts. w/e you say, is just an after thought.
08/01, 9:43 AM
posted by:
Htay5500
btw, enterprise called, they need their your cars back
08/01, 10:25 AM
posted by:
///m
LMAO, GM SALES is full of sh!t, its pretty easy to tell since hes praising the Solstice, Sky, and the Aura, the kid is just screwing around with everyone
08/01, 10:42 AM
posted by:
jackjimturkey
The miata is NOT a sports car.
08/01, 10:51 AM
posted by:
CTS DRIVER
yeah the idiot thinks a mazda 6 is a ford when its the other way around…..he has absolutely no credibility whatsoever and his/her/he-she is full of crap. lets not have this asspacker get us hating on each other.
08/01, 11:16 AM
posted by:
Htay5500
the dude is pretty ignorant, thinking GM tramps everything, in his dream.
08/01, 11:20 AM
posted by:
Veda
Yea, but it cracks me up to read the guy’s responses every time. It’s like watching a GM commercial on TV plus it keeps the site alive.
08/01, 11:36 AM
posted by:
1487_GM_SALES
“The miata is NOT a sports car.”
No it’s not. It is what you call a “Boulevard cruiser”, nothing else. The Solstice and the Sky spank it in performance, looks and quality. Oh wait that’s right, like a sports car!
The Miata has been a chick car since day one.
08/01, 11:53 AM
posted by:
Htay5500
since when were auras interiors were class leading? flame me if you like but our accord has soft materials to touch and feel worlds better than any car in its class. what makes you think tht?
08/01, 11:56 AM
posted by:
jJayC08
I am laughing my butt of at this dude, 1487_GM_SALES…
What are you doing, having wet dreams about going up the tail pipe of a GM?
Has anybody here actually SAT in the Mazda Miata? I have, but I can’t say much because it was only a quick drive around the block, the owner was selling it. The car was snatched up in about two weeks.
But, the little that I can say about the Miata, is it’s a fun car. I have no complaints about the interior, nothing exciting but it was nice- much better quality than the Solstice or Sky. The ride was zippy and very fun, like a sports car should be, and the suspension felt light and stable. The cars steering was sensitive- but not sensitive enough to bring up caution.
The Solstice is a better looking car, I’ll give it that- performance differences are small, that is according to almost all the individual tests I’ve read.
But almost ALL tests agreed, the Miata was much more responsive, better fit and finish, and a much better convertible.
Actually, Edmunds described the Pontiac Solstice as the “Boulevard Star”
08/01, 12:03 PM
posted by:
Htay5500
a miata makes a great project car. the solstice/sky shows how far behind GM is against miatas 17 yr hiatus.
08/01, 1:03 PM
posted by:
jackjimturkey
Sky and Solstice are GM’s version of the miata. Every miata knockoff is better, except the MR2 and s2000
htay: Hondas suck, I owned one. That’s why I drive something else now.
08/01, 1:41 PM
posted by:
Htay5500
we ownd 3 and we’re fine. better than our Kia.
08/01, 4:54 PM
posted by:
Me
I would disagree strongly with those that don’t think the Miata is a sports car. It’s the definition of sports car: small, great handling, tight chassis, plenty of power and open-air feel. That’s what has defined sports cars since their inception!
08/01, 5:15 PM
posted by:
jackjimturkey
170 hp is not “plenty of power.”
500 is.
08/01, 7:04 PM
posted by:
Me
jackjimturkey, that’s a viable opinion. But are you saying that because a car doesn’t have 500 hp is not a sports car? What, pray tell, is your definition? Corvette,(until the latest ZO6) wasn’t a sports car? Porsche 911, or Boxster isn’t? Triumphs, or ACs of the past, Honda s400-s2000, Z3, Z4, Datsun/Nissan Z, Fiat x19, MR2, TVR, Austins?? -Please clarify where you would draw the line. And don’t even mention Camaro or Mustang because you’ll lose all credibilty.
08/02, 9:45 AM
posted by:
HoosierHero
The Miata, Solstice, MR2, etc aren’t sports cars per se- they are roadsters. They are meant to be a fun, topless, “sporty” car. They are more sporty than a Corolla, but don’t compete with the vettes, stangs, etc. But that’s the point. I’d love to have one just to put around in on a nice day. If you want some serious power, handling, etc, buy something else!
08/02, 1:07 PM
posted by:
Me
So, Hoosier, in your expert opinion, a miata (et al) are not sports cars because they’re roadsters?? Really? You’re trying to make that point?? But a lumpy, 3200+ lb “stang” is? HA! Wow! I guess when I see stock miatas beating the pants off of a “stang” at solo races I must be imagining things. I think the “Sports Car” Club of America would disagree with you. They have a whole series dedicated to the MX-5 (MX-5 Cup). Just because something else can beat it doesn’t make it unworthy of being a sports car. I have to wonder if you guys have every driven one or do you just have an aversion to anything other than an American muscle car.
08/02, 6:41 PM
posted by:
jackjimturkey
I said 500 horespower is plent. I say give me 275 (more than any minivan) and I’ll listen to the rest of your “sports car” agument
Camaro and Mustang are note sports cars; they’re muscle cars.
Sports cars — Viper, 911 and Viper. Anything else is either an exotic/supercar, a Z-Ride or a poseur
hoosier: I woudn’t call them roadsters, even though they are in a way a spawn of the old MG/triumph
Me (how imaginative!) maybe it ain’t the car, but the driver.
I have no problem with the miata or its knockoffs (renault apparently now has one), but I laugh at any male or any post-collegiate female who drives one
08/04, 12:23 AM
posted by:
///m
The miata is a sports car, its actually the best selling sports car of all time, drive one and you’ll understand, also modifying that car can be absolutely ridiculous, one of the fastest car i’ve ever ridden in was a 400hp turbo miata, and i’ve been in some fast cars..
08/05, 6:57 PM
posted by:
jackjimturkey
///M: You’re nuts. a 400-hp miata ain’t stock. Miatas are NOT sports cars. Unless you’re one of those that considers a Yaris engine “exhireratingly powerful.”