**Mazda's New Luxury Shift: A Game-Changer?**
As 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.
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.
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.
WEBVTTKind: captionsLanguage: en(car engine revving)- Yeah, baby.- It's no secret thatMazdas are fun to drivewith the precision handlingand chassis dynamics of carslike the Miata, Mazda3 and CX-5.They've done a veryimpressive job of competingwith much larger Japaneseand American companies.Hell, you can be so boldas to call Mazda the BMWor Audi of mainstream budget auto makers.But, the times they are a changing,as in recent years Mazdaleadership has announcedthe brand has ambitions to go full luxury.But will customers wholove wallet-friendly modelslike the Miata and Mazda3,stay loyal to the company.As it transitions to competewith the likes of Mercedes SUVs.Can Mazda successfully pivotto being a luxury brandovernight at the same timemake gains in the American market.Mmh (prolonged)We'll see, let's break it down.- Last night, I had a dreamwhere I was on this ranch,there are horses everywhere.Not just regular horses,big, beautiful,sturdy, buff horses.That place,It's called Buff Horses Ranch.Now unfortunately that was just a dream.But these shirts we made are 100% realand 100% cotton.Available now at donutmedia.com.(upbeat music)- Mazda has been around since 1931but their first real carsdidn't hit the streetsof Japan until the early sixties.Their first two models,the two door R360 coupeand four door Micro-miniCarol 360 were both successfuland positioned Mazda as aforce to be reckoned withwithin the Japaneselightweight car market.Micro and mini huh.In 1970 Mazda made the move to the US.And while they haven't matchedthe massive global impactof Honda or Toyota, they havemanaged to become a staplein certain gearhead circlessimply, because they're fun cars.Their driver focused cockpitsand lightning quickhandling make their carsfeel like they're truly madefor people who love driving.Another unique part ofwhat makes Mazda uniqueis their price point.The CX-5 crossover forexample, performs right on parwith a budget Beamer or Audi,but it costs a whole lot less.What makes it a particularlyintriguing optionfor regular people whodon't have an extra 40Kto dump into a German driving experience.But buckle up Muchachosbecause Mazda is making a playfor the big leagues.On February 28th, JeremyThompson Mazda's UK bosstold Autocar that quote,our aspirations are tobecome a credible alternativeto the traditional mainstream premium.And that means non German.We're not looking to mimic German premiumbecause that's very well cateredfor what the existing incumbentsand probably impossible tobeat them at their own game.You know what I appreciate the honestybasically it sounds like Mazda believesthat there's still roomin the increasingly crowded luxury fieldfor a high end Japanese option.While Thompson refuted themimicking German narrative.What I assume will becomparable are the priceswhich is a pretty obvious signas to what motivated Mazda's luxury movein the first place, money.So what's Mazda's placein the market right now.Today, Mazda is valuedat just under $4 billionand ranks is the 15th mostprofitable car manufacturerin the world.I really would've guessed higher.Their fleet is modestbut exhilarating led by the MX-5 Miatawhich is one of the bestselling sports cars of all time.Motortrend named the 2022 Miatanumber one in performance convertiblesand calls its overall legacyone of the greatestdriver's cars ever producedand anyone who's driven onewill tell you that's totally on point.But as the industry shiftsaway from coupes and sedansMazda makes fun little four bangerslike the compact Mazda3, andalso does an admirable jobof challenging Hyundai andToyota compact crossoverswith the surprisingly awesome CX-5and the family pack in three row CX-9.Seriously, I love the CX-5, It's great.But despite a relativelyconsistent profit margin,Mazda3 sales were cut inhalf from 2016 to 2021with the company'soverall sales dropping 14%in the same time period.A big reason for this volatilityis that Mazda's mainstream modelshaven't consistently connectedwith buyers in the US.The good news is thatniche cars like the Miataand the older RX-8 stillhave a cult following.And more importantly,recent manufacturing moveshave positioned Mazda fora stateside improvement.A decade since they split with Ford,Mazda is once again building in the US.This time collaborating with Toyotaat their Huntsville Alabama plant.When their first CX-50 Crossoversrolled off the line in January,they came with improvementssussed out by both companies,were famous for their cost savingand manufacturing efficiency.Mazda believes restartingAmerican productionwith help from Toyota'srock solid reputationcould be a sales game changer.Quote, it's a huge advantagefor us to be able to learnfrom Toyota's vast experiencein the US says Masashi Aiharahead of Mazda Toyota manufacturing USA.Additionally Mazda has setup plans to launch 13 EVswithin the next three years,including five hybrid models,five plug-in hybrids andthree pure electric vehicles.Okay, so they're gonna bebuilding a lot more carsbut what should we expectin terms of Mazda's luxury?Well, it wasn't long ago whenMazda refreshed the Mazda3and CX-5 with upgraded interiors,larger infotainmentscreens, and sleeker designsthat essentially boosted theminto that premium bracket.I mean honestly, it's hardto get a better looking carfor the money inside and outthese days, look at this thing.However, Mazda is differentfrom other premium brandsunlike BMW, Audi, andMercedes who deal primarilywith rear wheel drive or allwheel drive vehicles Mazdaoutside of the MX-5 Miata is primarilya front wheel drive manufacturer,but that's about to changeas Mazda plans to come outwith new inline-six cylinder enginesand rear wheel driveplatforms for new SUVslike the CX-60.The CX-60 represents a significant uptickin luxury for Mazda.It's the first model forMazda's new large product groupthat will also span the CX-70, 80, and 90,totaling an impressive 10strong SUV lineup for the brand.That's a lot of SUVs.Slightly larger than the CX-5,the CX-60 will use Mazda'sfirst plug-in hybrid powertrainwhich they call the E-skyactiv active.This system connects a2.5-liter four-cylinder enginewith an electric motor,an eight speed automatic transmissionand a 17.8-kilowatt-hour battery pack.That gives you 323 horsepowerand 369 foot pounds of torquein a freaking crossover.The CX-60 surprisingly,is the most powerfulroad car Mazda has ever produced.It can rip zero to 62 milesper hour in 5.8 seconds,which is faster than my car,and will also feature thesame Kinetic Posture Controlanti roll tech that recently debutedin the Miata.Kinetic Posture Control or KPCimproves Mazda's alreadyexcellent handling.While you're leaning into a cornerthe system breaks the inside rear wheelto tighten the turningradius and reduce body roll.It also works whenaccelerating through a cornerwhich adds to the effectivenessof the Miata's limited slip differential.This is pretty sweet stuff.Following the CX-60 in Europewill be a new three rowSUV called the CX-80.While here in the stateswill get two different modelsthe CX-70 and the CX-90.All three of these will usethe CX-60s new under pinningsand PHEV powertrain,that means plug-inhybrid electric vehicle.Pricing for the currentCX-5 range tops outat around 55 grand.While most German makesstart in the mid 70's.That leaves a cute little spacefor the CX-60 to muscle intoit at maybe 62 to $68,000,who knows.Mazda may very well havethe recipe to rival crowdslike the Audi Q5, BMW X3and Mercedes GLC, but there are a fewless glamorous details thatI can't help but point out.Look, I know the Alabamaplant sounds promisingbut, there's a flood of newluxury vehicles on the market,that come from established brandsalready in the segment.Lexus for example, whohas always been referredto as the Japanese Mercedes-Benzis extremely impressivein their own right,managing to give BMW, Benzand Audi a run for their moneysince Toyota introducedthe luxury brand in 1989.So that's I mean, that's a big presenceright there that Mazda's gotta go against.Plus it's not the first time Mazda'stried to upgrade their image.As some of you probablyremember from the doomedAmati brand from the early 90's.We did a whole video onthat and a dang podcastgo check 'em out.Amati was scheduled to launchin 1994 with the attentionof going against variousInfiniti Acura and Lexus models.Mazda invested hundredsof millions of dollarsinto the project andfinished at least two models.But the Japanese economy tanked in 1992.And that same year Mazdapulled the plug on Amati.Despite that debacle, Iwill admit that Mazda,not to mention the Japanese economyis in a much better place today.So there's a good chancethere'll be a happier storythis time around.I'm gonna be honest whenI thought of this episodeI was like, you knowno way can Mazda pull this offbut then you reallystart to think about itand realize why did I ever think thatthey're 15th inprofitability for God's sakelike, they had to do somethingplus it's hard to find any serious flawswith 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 someof the most interestingand fun to drive vehicles on the roadand have also pioneeredsome really cool technology.If that continues, maybethey can hang in a spacebetween mainstream brands andJapanese luxury auto makersin a refreshing new way.Hell, they're named afterthe Persian God of light and wisdom.So maybe they got somedivine energy leading theminto this new phase.Side note, my last name Sykes,which I'm very proud of, meansmarshy stream or damp gully.Yeah. (laughs)- Even with my skepticismI'm glad to hear Mazda Isn'ttrying to be overly ambitiousfrom the get go.They've clearly statedthat they don't intendon becoming the nextMercedes, BMW or Audi.But instead want tooffer something entirelynew to catch the eye of restlesspremium 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 strategyand brand positioning talk.But maybe Mazda's cars will be so goodand so luxurious that theconsumer will be convincedthey're a legit luxury brand.I'm gonna need all you Mazda headsto sound off in the commentsand let us know what youthink of these changes.Are you pumped for the CX-60?What have you heard from friendswho have driven the new Miata or CX-5?We'll try to get our handson the new generation modelsas soon as they're releasedand tell them let'scontinue to enjoy the Mazdawe've come to appreciate for decades.Follow me @nolanjsykes.Hit like and subscribeIf you like this video.Be kind, I'll see you next time.