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- 2008 Mazda5 5MT Sport w/ Popular Package
Make no mistake, there is a war going on and every aspect of the automobile industry is under attack.
On one flank is a weak and volatile economy. Who could have predicted a year ago that the depth of the global recession would force two of the North American-based manufacturers to seek bankruptcy protection? Or that Pontiac and Saturn would be two casualties of the turmoil, soon to disappear from this market?
Since October 2008, more than 400,000 jobs have been shed from the Canadian job market and the national unemployment rate remains at an 11-year high of 8.6 per cent, according to Statistics Canada. However, it appears now that the worst is behind us. According to the Conference Board of Canada, led by the Asia-Pacific region, the global economy is expected to start growing again by the end of the year. The recovery will be slow, however, and growth in 2010 is forecast at just two per cent. This outlook also applies here, where the Conference Board predicts a return to growth in the Canadian economy by year's end. While the Maritimes and Manitoba will experience economic growth this year, the protracted recession in British Columbia, Alberta and Ontario where provincial gross domestic product will decline by 2.5 to 3.1 per cent, is putting the brakes on a national economic recovery.
The impact of all this on consumers has been significant, especially in the automotive sector. Fewer people are making the decision to purchase new vehicles. Canadian new-vehicle sales in 2009 are projected to total approximately 1.4 million units, down from more than 1.6 million units in 2008 -- the sharpest decline experienced in more than a decade. Furthermore, those people who are buying are choosing smaller, more fuel-efficient vehicles.
One-half of all new passenger-car purchases in Canada this year are compact cars, such as the Mazda3. As of the end of August this segment accounted for 50.1 per cent of total car sales, an increase of 1.9 percentage points from a year ago. The trend toward smaller vehicles is also seen with light-duty trucks where the compact utility segment, in which the Mazda tribute and CX-7 compete, has jumped 1.7 percentage points to 30.8 per cent of all light-duty truck sales. There is no doubt Canadians are more and more looking for inexpensive vehicles that are fuel efficient and less costly to maintain than the larger cars, trucks and SUVs they opted for in the past.
At Mazda, we are very well poised to capitalize on this trend. Our compact Mazda3 continues to be one of the top-selling cars in Canada. The Mazda5 compact minivan also continues to sell well with consumers looking to maximize vehicle utility and fuel efficiency.
This year, we are introducing a new model to our CX-7 lineup equipped with a normally aspirated 2.5-litre four-cylinder engine that will offer a less expensive, and more fuel efficient, alternative to the 2.3-L turbocharged version. And next year, Mazda will bring to Canada the subcompact Mazda2.
It's much more than a subcompact, entry-level vehicle. The Mazda2 demonstrates Mazda's ingenuity in engineering stylish, functional and fuel-efficient vehicles. When the second-generation Mazda2 was introduced in Japan and Europe two years ago, it set a new benchmark for lightweight design -- a key component to maximizing fuel economy. It won accolades in every market it was sold, capturing the 2008 World Car of the Year award. The addition of the Mazda2 will make Mazda's lineup of stylish, fuel-efficient and fun-to-drive vehicles even stronger.
While the tough economy we are experiencing attacks the automotive industry on one flank, on the other side of the battlefield is the challenge posed by new government regulations to improve fuel economy and reduce carbon emissions. Mazda's environmental "Sustainable Zoom-Zoom" strategy was announced in the fall of 2007. It is based on the assumption that for the rest of this decade, and probably most of the next decade, the vast majority of vehicles sold around the world will be powered by internal combustion engines.
Consequently, Mazda's approach is to make every vehicle it builds as environmentally friendly as possible -- as well as fun to drive. Therefore, in the short term we will concentrate on making our gasoline and diesel engines as fuel efficient as possible.
Beginning in 2011, Mazda will introduce a new generation of powertrains that, along with improvements in vehicle design and weight reduction, will see an improvement in fuel efficiency of 30 per cent compared to current vehicles. Current test results done on prototype engines indicate that Mazda will meet this objective when the new powertrains are introduced in mass-production vehicles.
In the meantime, Mazda will continue its R&D efforts into alternative energy sources for vehicles, especially concentrating on its dual-fuel, hydrogen/gasoline, rotary engine as currently demonstrated in the Hydrogen Rotary RX-8 and with its dual-fuel, hydrogen-gasoline electric hybrid system currently in the Premacy Hydrogen Rotary Engine (HRE) Hybrid. Both of these vehicles are currently being leased to customers in Japan.
Of course, the fight in the centre of the battlefield is where the winners and losers will emerge. This is where only the strongest brands will survive. In the past, many auto-mobile companies misinterpreted sales volume for brand strength. Most of these companies are struggling to stay alive today. Selling cars to keep factories operating is a failed strategy.
Like in any business, supply must be determined by demand -- and true, sustainable demand requires more than cheap payments and low prices. It requires a unique identifying element that resonates with consumers and sets you apart from the competition.
This was the vision that led Mazda to the creation of Zoom-Zoom. Aside from being one of the most recognizable marketing campaigns in the world, Zoom-Zoom goes much further than advertising. Zoom-Zoom is the embodiment of "the emotion of motion" and it is the essential element that guides the design and engineering of every vehicle Mazda makes.
Mazda vehicles are not designed to appeal to everyone. They are designed, however, for driving enthusiasts -- people who don't want to just get from Point A to Point B, but who anticipate the emotional fulfilment that comes with driving their vehicles every day. This is accomplished through stylish-looking vehicles with insightful features and craftsmanship, and responsive driving dynamics.
As Mazda continuously strives to strengthen its brand, Zoom-Zoom evolves as well. New technologies, as well as design and manufacturing processes, are being incorporated into our next generation of products that will ensure every vehicle we build is an environmentally friendly vehicle that's also fun to drive.
Cementing a long-lasting relationship with customers goes well beyond building an appealing product. It must carry forward into the everyday experience each customer has with his or her vehicle -- after the smell of a brand-new car has faded and the last payment has been made.
We encapsulate all this in Zoom-Zoom Forever. It is the driving force behind the vehicles we develop, the relationships we create with our customers, and the experience with the brand we promise.
As the automobile industry in Canada emerges from one of the most challenging periods in our history, it is abundantly clear that the difference between the winners and losers will ultimately come down to one thing: brand strength.
To paraphrase Ferdinand Foch, the French general who reported to headquarters in the First World War's First Battle of the Marne: hard pressed on my right, my centre is yielding, impossible to manoeuvre, I am attacking.
[The Star Phoenix]
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