Mazda's Eunos MkII?

[Syndrome]

Mazda's timing couldn't be worse. Last time they decided to follow Toyota (Lexus), Nissan (Infiniti) and Honda (Acura) with the creation of a luxury brand, they got burnt by the end of the Japanese bubble economy.

Now it appears they are planning to re-enter the luxury car market just as the world is about to enter the 2nd Great Depression.

https://www.news.com.au/technology/i...1012ede25492c4

[oldel]

They'll get there eventually
They were going rotary past the 90s when it's time was done. They were going hydrogen fuel cell when everyone else gave up. Even when eunos was here last they were doing miller cycle engines.
They have a very optimistic research department always doing expensive projects and blowing cash.

They are certainly an interesting company with lots of tuning, tech and handling set up experience so if anyone can get into the BMW market it will probably be them.

(It will probably end up being Korea as mazda goes broke... )

[Bossxr8]

Nowhere does it say it will be launching a premium offshoot like Eunos, Lexus, Infiniti etc. Just that they will be making the 6 a more premium product with rwd and a 6 cylinder engine. I don't see a problem with that. Different story if they were trying to relaunch Eunos.

[Syndrome]

Originally Posted by Bossxr8

Nowhere does it say it will be launching a premium offshoot like Eunos, Lexus, Infiniti etc. Just that they will be making the 6 a more premium product with rwd and a 6 cylinder engine. I don't see a problem with that. Different story if they were trying to relaunch Eunos.

i was merely making a connection with the last time Mazda tried to enter the luxury car market.

[Poetic Justice]

They've already been trying to do this anyhow.

The Mazda 3 cuts in at high $20s now and they see themselves as being a step above the other brands like Toyota, Hyundai, Ford et al.

[Yellow_Festiva]

Originally Posted by Poetic Justice

They've already been trying to do this anyhow.

The Mazda 3 cuts in at high $20s now and they see themselves as being a step above the other brands like Toyota, Hyundai, Ford et al.

That's what I was thinking - they have already started with the newly launched models.

Have sales taken a dive since this move? They were always at / near the top of the list for their segment.

Having said that, and extra $5-7k per car should maintain profits with the drop in sales. Then again, the servicing will suffer, which is where the other budget brands get some of their return.

[Poetic Justice]

Originally Posted by Yellow_Festiva

That's what I was thinking - they have already started with the newly launched models.

Have sales taken a dive since this move? They were always at / near the top of the list for their segment.

Having said that, and extra $5-7k per car should maintain profits with the drop in sales. Then again, the servicing will suffer, which is where the other budget brands get some of their return.

Yes, they have seen a sharp decline on the back of not having a price pointed Mazda 3.

It is true though, a number of manufacfturers are looking to do away with the price pointed car, having a higher entry point and attaining profit over volume.

Hyundai did it in 2017 when they released the current gen i30 - moving from a $19,990 auto car to $24,990.

Recent Corolla has also done away with the entry level model also.

[Polyal]

Originally Posted by Poetic Justice

Yes, they have seen a sharp decline on the back of not having a price pointed Mazda 3.

It is true though, a number of manufacfturers are looking to do away with the price pointed car, having a higher entry point and attaining profit over volume.

Hyundai did it in 2017 when they released the current gen i30 - moving from a $19,990 auto car to $24,990.

Recent Corolla has also done away with the entry level model also.

That business model works OK if you have market share, its not different to what the Japanese did when they started out. Come in cheap, build your base and then start looking at profit; it makes sense.

But once you move away from turn over to profit driven/margin then yoru risk is higher.

I think Ford in this country and the move away from Mazda product sharing is not a bad example. Fords small car range deserves to sell better but its just not getting the numbers. Im not privy to their P&L but they must be struggling if it wasn't for the ranger and mustang and the latter is risky.

Seems this next car will be the 6 replacement? They would be nuts to start Eunos again it will only dilute the brand.

[bangm001]

Had my wifes maxda 6 for 6 years now not even 1 single issue with it. Oil and filter only at services and tyres, thats it!

[Bossxr8]

Originally Posted by Polyal

That business model works OK if you have market share, its not different to what the Japanese did when they started out. Come in cheap, build your base and then start looking at profit; it makes sense.

But once you move away from turn over to profit driven/margin then yoru risk is higher.

I think Ford in this country and the move away from Mazda product sharing is not a bad example. Fords small car range deserves to sell better but its just not getting the numbers. Im not privy to their P&L but they must be struggling if it wasn't for the ranger and mustang and the latter is risky.

Seems this next car will be the 6 replacement? They would be nuts to start Eunos again it will only dilute the brand.

Ford's profit is better because they never sell anything at a loss these days. That's the whole point of the higher RRP's. If it's not profitable it doesn't come here, hence why the Fiesta ST is the only version of Fiesta they are selling.

The days of chasing sales figures by selling at rock bottom prices are over. All that gets you is red ink. It's all about being solidly profitable now, or it doesn't come here.

[Polyal]

Originally Posted by Bossxr8

Ford's profit is better because they never sell anything at a loss these days. That's the whole point of the higher RRP's. If it's not profitable it doesn't come here, hence why the Fiesta ST is the only version of Fiesta they are selling.

The days of chasing sales figures by selling at rock bottom prices are over. All that gets you is red ink. It's all about being solidly profitable now, or it doesn't come here.

For sure, but if you dont sell your profitable models your doubly bent over.

Its pretty interesting as both models have some merit.

[Bossxr8]

Originally Posted by Polyal

For sure, but if you dont sell your profitable models your doubly bent over.

Its pretty interesting as both models have some merit.

We are starting to see a lot of manufacturers start to cull unprofitable models. And I reckon since the coronavirus is upon us you will see that accelerate even more. Also the aussie dollar being so weak will also accelerate it, because it's cutting into profit margins. So you will also see RRP's increase.

[Adamz Ghia]

Originally Posted by Poetic Justice

Yes, they have seen a sharp decline on the back of not having a price pointed Mazda 3.

It is true though, a number of manufacfturers are looking to do away with the price pointed car, having a higher entry point and attaining profit over volume.

Hyundai did it in 2017 when they released the current gen i30 - moving from a $19,990 auto car to $24,990.

Recent Corolla has also done away with the entry level model also.

Pretty sure they had to reintroduce a base model at the sub $20k mark as sales dipped.

[Bossxr8]

Originally Posted by Adamz Ghia

Pretty sure they had to reintroduce a base model at the sub $20k mark as sales dipped.

They did. Steel wheels with hubcaps in place of alloys etc.