Mazda Reports 5.4% Fall in Quarterly Profits
Quickly – to the Miatas.
Mazda Motor Corp. announced today that its quarterly profits have fallen 5.4%, with strong sales in China and the US buffering the company from losses due to buying new production facilities and in foreign exchange losses.
Mazda said that its April-June operating profit was 53.32 billion yen (which is about $430 million US), where last year it was 56.38 billion yen (about $454 million).
A good amount of the saving grace of the quarter was new model releases. In China, these caused sales to soar to a record of 57,000 vehicles, an increase of 31%. This success was partly aided by government incentives encouraging the purchase of the environmentally-concious Mazda3.
More on the Mazda3: Mazda3 Makes Best Family Cars of 2015 List from Edmunds, Parents Magazine
However, despite the success, Mazda is still worried about the Chinese market.
“To be honest, it’s difficult to read [the Chinese auto market],” said Masahiro Moro, managing executive officer and head of global marketing. “Up to now it’s been growth and growth, but that’s no longer quite the case.”
Car companies remain suspicious of the Chinese market over worries that recent economic turbulence might cause customers to save their money rather than buy a car.