Mazda CX-9 and Mazda's financial problems

V

vmn242018

Member
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Corolla 2006 1.8
Dear all,

Hello!

First of all, brief introduction- I am from India and working in Dubai (Middle East) from the last 12 years. Ours is a small family- me, wife, son and MIL.

Now with regards to vehicle- after driving Corolla for more than 6 years, we have decided to buy a new vehicle. So I googled many sites, including the sites popular in Dubai (Middle East). Finally shortlisted-

  1. Nissan pathfinder 2013 version (though it will be available in Dubai by early 2013 only)
  2. CX-9

I have taken CX-9 for test drive- thrice and I must say it is quite impressive. Now the confusing part-

  1. I am concerned about the fuel economy as I have checked many sites and each one reports that CX-9 is not impressive from this aspect. On the other side, Pathfinder 2013 can be termed above average (as per sites). I want to wait for Pathfinder but if the price goes above my budget, I will loose on existing promotion scheme for CX 9 GT. Even though fuel is not costly ($.47 per ltr) but I want to consider this while buying the new vehicle.
  3. Second and more confusing is- considering the (1) financial woes of Mazda, (2) discontinuation of V 6 from Mazda vehicles, (3) new version of CX 9 starting from 2013- is it advisable to buy CX-9? Even though I will be getting 5 years or 140000 KM warranty but considering all the points mentioned above, I feel that spare parts will not be available and the resale value will also be quite bad.


I hope many of you might have answers to above queries and I would appreciate your advice on this.

Tks

Vic
 
There are benefits and drawbacks to each vehicle. I have been an owner of both Nissans and Mazdas so I do not have a bias towards either.

The new Pathfinder appears to be very impressive. You can read all of the positive reviews on their website. They have not been out long enough for many regular drivers to supply feedback yet. On the minus side, it is a brand new vehicle and may suffer from growing pains. Most new models have a few issues that the designing engineers never thought of until the general public started using them. I loved my Nissan and would have gladly bought another if they had this style of Pathfinder when i was buying.

The CX9 is a much more proven commodity. I am not that familiar with the terrain in your part of the world, but if it is flat, then your mileage should be pretty good. I have gotten as high as 22MPG on a trip to Virginia in the middle of July. It was quite warm for my area and the AC was being used the whole time. Not to mention that mine is an AWD model. If you enjoy driving, the CX9 is a great choice. It is comfortable, versatile, and handles very well for a vehicle its size. It still has the V6 for now, so power is not an issue at the moment. I still really enjoy driving mine, even after owning it for almost 2 years.

I do not think that Mazda is suffering from any financial hardships at this time. They have been rolling out several new products, and have not given any hint that they are in any financial woes. That is not to say that they are on solid ground either. They are a small company, without the support of a parent company like Ford, so development costs will be much higher for them. If they play their cards right, they can be just as solid as Subaru is now.

Their new products ( CX5 and new Mazda 6) are pretty impressive so far. It remains to be seen if they will be able to sell enough to be competitive.
 
Hi King

First of all, thank you for your reply.

I agree with your point that each vehicle has its own pros and cons.

In the last couple of months, I have checked many vehicles but I liked CX as it is much better than many (in my budget). In Dubai, one will find straight roads. Outskirts are mostly hilly areas. 60% of Dubai is covered with desert. Summer (6 months) temperature crosses 45 and duriing winter it is mostly 10-15 degrees.

I have test driven CX AWD and I liked it a lot. CX GT under promotion is V6.

With regards to Mazda's problems, I google it and found that they are in loss from the last 4 years. In 2011, they were in red by USD1.29 billion !!!!. In USA they have given red slips to many employees. Since their seperation with Ford, they have been looking for JV's with big groups. Considering (1) financial woes of Mazda, (2) discontinuation of V 6 from Mazda vehicles, (3) new version of CX 9 starting from 2013, I dont know if they will be able to provide spare parts during 5 years warranty. Above all, what will be the resale value after 5 years when the product is not supported by the manufacturer.

Let me know what you think

Cheers

Vic
 
I was unaware of Mazda's financial situation. I just googled it myself, and was a little surprised. I do read a lot of the automotive "rags" and cannot recall seeing much in the way of reporting on this issue.

The global economy is likely affecting all auto manufacturers, but the smaller ones, such as Mazda, are feeling it even more.

I cannot tell you what the future holds, in terms of Mazda's future. I can tell you that I love my CX9 and I would recommend it to you without hesitation. The Pathfinder would not be a bad choice either. It appears to be a very nice vehicle from what I have read.

It is ultimately your decision. You have to chose between a proven CUV with better price tag, but an uncertain manufacturer future. Or pay more for a brand new product that may still have some gremlins, but has a much stronger chance of the brand being viable in 5 years.


Personally, if you must buy right now and cannot wait a few years for the Pathfinder to settle in, then I would buy the Mazda. The monetary savings would be a primary incentive. The fact that it is a proven vehicle with 6 years of sales to back up its claims would be a strong secondary reason.

My concerns on the Pathfinder would be the CVT. That is a very expensive piece of technology. I had one in my Altima, and found it to be very responsive and a great match for the VQ V6 on the platform. Even though the Pathfinder shares its platform and motor with the Altima, it is also much larger and heavier. It is also rated to tow 5000lbs which would really scare me with a CVT. I test drove a Murano and the CVT seemed to work well there too, but it was only a test drive. The CVT would be the primary reason I would shy away from the Pathfinder, even though I really liked it in the Altima.

There are a lot of personal opinions here, but I tried to support them with facts. Hope it helps you out with your choice.

Good luck and enjoy whatever you buy.
 
Actually I am planning to buy Mazda ADR seeing how successful the SkyActiv technology is well accepted and selling.
The worst for Mazda was over.
 
ceric said:
Actually I am planning to buy Mazda ADR seeing how successful the SkyActiv technology is well accepted and selling.
The worst for Mazda was over.
Click to expand...

hi ceric

how has been your experience with yur existing cx?

Tks

vic
 
ceric said:
Actually I am planning to buy Mazda ADR seeing how successful the SkyActiv technology is well accepted and selling.
The worst for Mazda was over.
Click to expand...

I agree with this assessment. I can remember about 7-8 years ago, everyone was playing funeral music for Nissan. Both working capital and financing was problematic, and as you may have noticed, there is no shortage of new and redesigned vehicles from them. They hit the nail squarely on the head with the Murano and went on from there. I believe the SkyActiv is a real bell-ringer for Mazda. And by the way my CX9 is the most fun vehicle I've ever owned - but then I come from a long line of big American barges and SUV's. Generally, I have found that if I have the fortitude to "try it" the CX9 has the capability to execute it. To a prospective owner, the most substantial remark I can make is: "if something happened to my CX9 tonight, tomorrow I would be looking for another one." Mine is 2.5 years old with 26000 on the clock, and except for a fuel cap light that hates me, the car has been perfect.
 
Last edited:
ceric said:
Actually I am planning to buy Mazda ADR seeing how successful the SkyActiv technology is well accepted and selling.
The worst for Mazda was over.
Click to expand...

May I humbly suggest GM instead. You'll thank me later. 8^$
 
Mazda sold 30% fewer cars in china last month. Thanks to the territorial dispute over those tiny islands. Nothing to do with cars, it's reported.

That's sad, and it's just one more headwind facing this company as they enter a new decade offering a slightly upgraded lineup of conventional vehicles.
 
At LA autoshow, the CEO announced that Mazda broke even for the 1st half of the year.
No need to worry about Mazda. Skyactiv is doing great. CX5 just got the Japan COTY award recently.
 
One non-bleeding quarter does not a bullish recovery make. Fiscal 2012 was a disaster for them. Like the last 4. They are loaded with debt. The CEO expects 2013 to be a loss as well, and no dividend will be paid till AT LEAST 2016, if they fire on all cylinders till then.

I would not touch an OTC penny stock right now, much less an ADR, much less Mazda's. It's uber-risky. The analysts must agree - they don't bother to cover it.

To be clear, I also think Mazda has hit bottom and will be around for years. There are glimmers of hope for the overall auto sector. Some auto companies might make decent investments, if they carry dividends and the global economy improves. But loving a car and loving a carmaker's stock are two very different things.

I love my Mazdas. But I would buy almost ANY other car company's stock first.

But it's your $$, to use as you see fit. Right?
 
HOLOHOLO said:
One non-bleeding quarter does not a bullish recovery make. Fiscal 2012 was a disaster for them. Like the last 4. They are loaded with debt. The CEO expects 2013 to be a loss as well, and no dividend will be paid till AT LEAST 2016, if they fire on all cylinders till then.

I would not touch an OTC penny stock right now, much less an ADR, much less Mazda's. It's uber-risky. The analysts must agree - they don't bother to cover it.

To be clear, I also think Mazda has hit bottom and will be around for years. There are glimmers of hope for the overall auto sector. Some auto companies might make decent investments, if they carry dividends and the global economy improves. But loving a car and loving a carmaker's stock are two very different things.

I love my Mazdas. But I would buy almost ANY other car company's stock first.

But it's your $$, to use as you see fit. Right?
Click to expand...



In the bigger picture, many Japanese multinationals have been taking a hit whether it's companies such as Mazda in the auto sector to heavy weights in others sectors such as Sony and Panasonic. In the big picture, we must look at the brand itself (how is it seen in the automotive landscape), the strength of the current product offerings, the upcoming products (including anticipation of the market), etc.... When I look at Mazda, I see them as strong brand who's products are viewed in a positive manner. Worst case, they would get bought up by someone before they would close operations. Think how long it took before Saab died and they had no where near the brand appeal nor the market share of Mazda.

Having said that.....I own an early model CX-9 as well as a Nissan GT-R. And both car's have had their teething problems based on real world usage. I would say there is no appreciable difference between both brands (even though my experience with my CX-9 has been more negative), in the end it always comes down to the quality of the dealer and your relationship with them.

My advice would be to buy the car which fits your budget and stirs your soul.
 
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