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December 20, 2018 06:11 PM

Mazda needs greener cars to meet tougher CO2 limits, Europe boss says

Andrea Malan
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    Mazda added selective catalyst reduction to the Mazda6 and CX-5 (shown) because without SCR it would not be possible to pass RDE (real driving emissions) tests while maintaining the same level of performance, Europe boss Jeff Guyton said.

    Mazda Europe plans to offer fuel-efficient full-electric and hybrid models to avoid being fined by the EU, which will make reaching CO2 emissions reduction targets tough starting in 2020. Mazda's answers to the challenge will include a mild hybrid solutions coupled with its Skyactiv-X engine technology. Mazda Europe CEO Jeff Guyton discussed the company’s strategy with Automotive News Europe Correspondent Andrea Malan.

    When will customers in Europe start to see Mazda’s new technologies?
    Skyactiv-X will debut in 2019 in a vehicle you will see at the Geneva auto show in March. All of our Skyactiv-X models, plus some of the existing ones, will have at least a mild-hybrid powertrain starting in 2019. A battery-electric vehicle will come in 2020 and a plug-in hybrid will arrive in 2021.

    Will your EVs make money?
    We have to make a plan that does not rely on a huge number of electric vehicles, not necessarily for profit reasons but also for customer acceptance and availability of charging stations. Right now, full-electric cars and plug-in hybrids only sell well in markets that offer very high incentives.

    How is Mazda’s cooperation with Toyota on electrification proceeding?
    We have two tracks on electrification. The EV we will launch in 2020 will be with Mazda technology. The technology we are working on with Toyota and Denso will arrive maybe a couple of years later.

    What share of Mazda’s European sales are diesels?
    Between 25 and 30 percent, obviously a bit higher for our larger vehicles. For customers who drive 20,000 km or more, the mix of diesel is still above 50 percent.

    How has Europe’s decline in diesel sales affected Mazda?
    Our diesel mix has only been strong on our larger products, while it’s relatively low on the Mazda2 or CX-3. Customer orders are coming back for our larger products that comply with new EU emissions standards. We see a fairly dramatic change from the old regulation to the new.

    Is demand recovering in France and Germany, where there has been a heavy backlash against diesels?
    Our German team sees a very big change from the prior regulation to the new one, in terms of customer orders for Euro 6d-temp diesels versus older models under NEDC (New European Driving Cycle) rules.

    "We see a fairly dramatic change from the old regulation to the new," Mazda Europe CEO Jeff Guyton said.

    Meet the boss

    NAME: Jeff Guyton
    TITLE: Mazda Europe CEO
    AGE: 51
    MAIN CHALLENGE: Electrifying Mazda’s lineup to comply with tougher EU CO2 emissions limits.

     

    Will diesel sales return to past highs?
    The diesel share of sales will not go back to previous levels, but there will be a certain amount of renaissance in the segment, partly because diesel is important for all manufacturers to meet the CO2 requirements. Looking at air quality as a whole, there are many sources of NOx that have a bigger impact than Euro 6d-temp vehicles.

    What changes did Mazda make for its diesel engines to comply with Euro 6d-temp rules under the Worldwide harmonized Light vehicle Test Procedure (WLTP)?
    We added SCR (selective catalyst reduction) to the Mazda6 and CX-5. Without SCR, it would not be possible to pass the RDE (real driving emissions) tests while maintaining the same level of performance. We do not need SCR on our smaller vehicles.

    Does Mazda make money in Europe?
    Yes, we do.

    What is your forecast for the EU market in 2019?
    From a macro standpoint, I expect the industry to be more or less stable, although the UK is still a wild card due to Brexit. The core markets in western Europe are fairly stable. Germany will continue to do well; so will France; Italy, too, as we hope there will not be a banking crisis there. From a Mazda perspective, I see volumes up slightly from this year.

    Will Mazda offer a crossover below the CX-3 in Europe?
    We have no plans for one. There is a trend toward crossovers and SUVs across segments. On the other hand, if we look at the market share of our models in Europe, the Mazda2 [subcompact hatchback] has the lowest share. I prefer to invest in the segments where we do well, which tend to be the higher revenue ones. We have full capacity utilization so I need the most profitable vehicles for us and for the dealers.

    Talk from the Top 2018

    To view the entire Automotive News Europe Talk from the Top supplement click here.

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