(car engine revving)
- Yeah, baby.
- It's no secret that Mazdas are fun to drive
with the precision handling and chassis dynamics of cars
like the Miata, Mazda3 and CX-5.
They've done a very impressive job of competing
with much larger Japanese and American companies.
Hell, you can be so bold as to call Mazda the BMW
or Audi of mainstream budget auto makers.
But, the times they are a changing,
as in recent years Mazda leadership has announced
the brand has ambitions to go full luxury.
But will customers who love wallet-friendly models
like the Miata and Mazda3, stay loyal to the company.
As it transitions to compete
with the likes of Mercedes SUVs.
Can Mazda successfully pivot
to being a luxury brand overnight at the same time
make gains in the American market.
Mmh (prolonged)
We'll see, let's break it down.
- Last night, I had a dream
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Not just regular horses,
big, beautiful,
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That place,
It's called Buff Horses Ranch.
Now unfortunately that was just a dream.
But these shirts we made are 100% real
and 100% cotton.
Available now at donutmedia.com.
(upbeat music)
- Mazda has been around since 1931
but their first real cars didn't hit the streets
of Japan until the early sixties.
Their first two models, the two door R360 coupe
and four door Micro-mini Carol 360 were both successful
and positioned Mazda as a force to be reckoned with
within the Japanese lightweight car market.
Micro and mini huh.
In 1970 Mazda made the move to the US.
And while they haven't matched the massive global impact
of Honda or Toyota, they have managed to become a staple
in certain gearhead circles
simply, because they're fun cars.
Their driver focused cockpits
and lightning quick handling make their cars
feel like they're truly made for people who love driving.
Another unique part of what makes Mazda unique
is their price point.
The CX-5 crossover for example, performs right on par
with a budget Beamer or Audi, but it costs a whole lot less.
What makes it a particularly intriguing option
for regular people who don't have an extra 40K
to dump into a German driving experience.
But buckle up Muchachos because Mazda is making a play
for the big leagues.
On February 28th, Jeremy Thompson Mazda's UK boss
told Autocar that quote,
our aspirations are to become a credible alternative
to the traditional mainstream premium.
And that means non German.
We're not looking to mimic German premium
because that's very well catered
for what the existing incumbents
and probably impossible to beat them at their own game.
You know what I appreciate the honesty
basically it sounds like Mazda believes
that there's still room
in the increasingly crowded luxury field
for a high end Japanese option.
While Thompson refuted the mimicking German narrative.
What I assume will be comparable are the prices
which is a pretty obvious sign
as to what motivated Mazda's luxury move
in the first place, money.
So what's Mazda's place in the market right now.
Today, Mazda is valued at just under $4 billion
and ranks is the 15th most profitable car manufacturer
in the world.
I really would've guessed higher.
Their fleet is modest
but exhilarating led by the MX-5 Miata
which is one of the best selling sports cars of all time.
Motortrend named the 2022 Miata
number one in performance convertibles
and calls its overall legacy
one of the greatest driver's cars ever produced
and anyone who's driven one
will tell you that's totally on point.
But as the industry shifts away from coupes and sedans
Mazda makes fun little four bangers
like the compact Mazda3, and also does an admirable job
of challenging Hyundai and Toyota compact crossovers
with the surprisingly awesome CX-5
and the family pack in three row CX-9.
Seriously, I love the CX-5, It's great.
But despite a relatively consistent profit margin,
Mazda3 sales were cut in half from 2016 to 2021
with the company's overall sales dropping 14%
in the same time period.
A big reason for this volatility
is that Mazda's mainstream models
haven't consistently connected with buyers in the US.
The good news is that niche cars like the Miata
and the older RX-8 still have a cult following.
And more importantly, recent manufacturing moves
have positioned Mazda for a stateside improvement.
A decade since they split with Ford,
Mazda is once again building in the US.
This time collaborating with Toyota
at their Huntsville Alabama plant.
When their first CX-50 Crossovers
rolled off the line in January,
they came with improvements sussed out by both companies,
were famous for their cost saving
and manufacturing efficiency.
Mazda believes restarting American production
with help from Toyota's rock solid reputation
could be a sales game changer.
Quote, it's a huge advantage
for us to be able to learn from Toyota's vast experience
in the US says Masashi Aihara
head of Mazda Toyota manufacturing USA.
Additionally Mazda has set up plans to launch 13 EVs
within the next three years, including five hybrid models,
five plug-in hybrids and three pure electric vehicles.
Okay, so they're gonna be building a lot more cars
but what should we expect in terms of Mazda's luxury?
Well, it wasn't long ago when Mazda refreshed the Mazda3
and CX-5 with upgraded interiors,
larger infotainment screens, and sleeker designs
that essentially boosted them into that premium bracket.
I mean honestly, it's hard to get a better looking car
for the money inside and out these days, look at this thing.
However, Mazda is different from other premium brands
unlike BMW, Audi, and Mercedes who deal primarily
with rear wheel drive or all wheel drive vehicles Mazda
outside of the MX-5 Miata is primarily
a front wheel drive manufacturer,
but that's about to change as Mazda plans to come out
with new inline-six cylinder engines
and rear wheel drive platforms for new SUVs
like the CX-60.
The CX-60 represents a significant uptick
in luxury for Mazda.
It's the first model for Mazda's new large product group
that will also span the CX-70, 80, and 90,
totaling an impressive 10 strong SUV lineup for the brand.
That's a lot of SUVs.
Slightly larger than the CX-5,
the CX-60 will use Mazda's first plug-in hybrid powertrain
which they call the E-skyactiv active.
This system connects a 2.5-liter four-cylinder engine
with an electric motor,
an eight speed automatic transmission
and a 17.8-kilowatt-hour battery pack.
That gives you 323 horsepower
and 369 foot pounds of torque in a freaking crossover.
The CX-60 surprisingly, is the most powerful
road car Mazda has ever produced.
It can rip zero to 62 miles per hour in 5.8 seconds,
which is faster than my car,
and will also feature the same Kinetic Posture Control
anti roll tech that recently debuted
in the Miata.
Kinetic Posture Control or KPC
improves Mazda's already excellent handling.
While you're leaning into a corner
the system breaks the inside rear wheel
to tighten the turning radius and reduce body roll.
It also works when accelerating through a corner
which adds to the effectiveness
of the Miata's limited slip differential.
This is pretty sweet stuff.
Following the CX-60 in Europe
will be a new three row SUV called the CX-80.
While here in the states will get two different models
the CX-70 and the CX-90.
All three of these will use the CX-60s new under pinnings
and PHEV powertrain,
that means plug-in hybrid electric vehicle.
Pricing for the current CX-5 range tops out
at around 55 grand.
While most German makes start in the mid 70's.
That leaves a cute little space
for the CX-60 to muscle into it at maybe 62 to $68,000,
who knows.
Mazda may very well have the recipe to rival crowds
like the Audi Q5, BMW X3
and Mercedes GLC, but there are a few
less glamorous details that I can't help but point out.
Look, I know the Alabama plant sounds promising
but, there's a flood of new luxury vehicles on the market,
that come from established brands
already in the segment.
Lexus for example, who has always been referred
to as the Japanese Mercedes-Benz
is extremely impressive in their own right,
managing to give BMW, Benz and Audi a run for their money
since Toyota introduced the luxury brand in 1989.
So that's I mean, that's a big presence
right there that Mazda's gotta go against.
Plus it's not the first time Mazda's
tried to upgrade their image.
As some of you probably remember from the doomed
Amati brand from the early 90's.
We did a whole video on that and a dang podcast
go check 'em out.
Amati was scheduled to launch in 1994 with the attention
of going against various Infiniti Acura and Lexus models.
Mazda invested hundreds of millions of dollars
into the project and finished at least two models.
But the Japanese economy tanked in 1992.
And that same year Mazda pulled the plug on Amati.
Despite that debacle, I will admit that Mazda,
not to mention the Japanese economy
is in a much better place today.
So there's a good chance there'll be a happier story
this time around.
I'm gonna be honest when I thought of this episode
I was like, you know
no way can Mazda pull this off
but then you really start to think about it
and realize why did I ever think that
they're 15th in profitability for God's sake
like, they had to do something
plus it's hard to find any serious flaws
with any modern Mazdas.
They just make really great cars.
(exhales)
I'm really sorry I doubted you Mazda.
Mazda has always blazed their own trail.
They've developed some of the most interesting
and fun to drive vehicles on the road
and have also pioneered some really cool technology.
If that continues, maybe they can hang in a space
between mainstream brands and Japanese luxury auto makers
in a refreshing new way.
Hell, they're named after
the Persian God of light and wisdom.
So maybe they got some divine energy leading them
into this new phase.
Side note, my last name Sykes,
which I'm very proud of, means marshy stream or damp gully.
Yeah. (laughs)
- Even with my skepticism
I'm glad to hear Mazda Isn't trying to be overly ambitious
from the get go.
They've clearly stated that they don't intend
on becoming the next Mercedes, BMW or Audi.
But instead want to offer something entirely
new to catch the eye of restless
premium car shoppers, looking for a change.
Maybe this luxury shift was inevitable.
Considering Toyota has Lexus,
Nissan has Infiniti and Honda has Acura.
At the moment this is all strategy
and brand positioning talk.
But maybe Mazda's cars will be so good
and so luxurious that the consumer will be convinced
they're a legit luxury brand.
I'm gonna need all you Mazda heads
to sound off in the comments
and let us know what you think of these changes.
Are you pumped for the CX-60?
What have you heard from friends
who have driven the new Miata or CX-5?
We'll try to get our hands
on the new generation models as soon as they're released
and tell them let's continue to enjoy the Mazda
we've come to appreciate for decades.
Follow me @nolanjsykes.
Hit like and subscribe If you like this video.
Be kind, I'll see you next time.