I think Mazda's making some good moves with this product proliferation renaissance. Consultants and analysts just create something to 
about. Principally, I think Mazda has designed the models to suit local needs, but is offering them globally (CX-9 excepted, North American only?) which is something I admire.Mazda: A case of crossoverkill?
Execs: Each of the 5 people haulers serves a niche
Mark Rechtin | | Automotive News / February 19, 2007 - 1:00 am
How's this for a marketing challenge: Soon Mazda will be selling five different people haulers - all about the same size and all within a relatively narrow price band.
Isn't that cutting things a little too fine for a brand that's a niche player to begin with?
Mazda marketing executives say no. They insist the five products can exist comfortably in one showroom because they appeal to different buyers.
But it seems like a lot of finessing for one smallish brand - not to mention a lot of manufacturing complexity. Combined, all five vehicles are expected to sell only about 135,000 units annually. Their base prices vary by just $11,400 from top to bottom.
Mazda will have a tough time, said Wes Brown, analyst with Iceology in Los Angeles.
"They're basically saying, 'We don't know where the market is going to go, so let's offer the consumers as many choices as we can and see where the cards play out," Brown said. "In three or four years we can get rid of the ones that don't work out."
The lineup consists of:
The Mazda5, a compact minivan that seats six.
The Tribute, a mid-sized, car-based SUV that seats five.
The CX-7, a mid-sized crossover that seats five.
The Mazda6 sport wagon, a mid-sized wagon that seats five.
The CX-9, a mid-sized crossover that seats seven.
Room for everyone
Most of the vehicles are either new or have undergone recent changes. The Mazda5 was introduced in summer 2005. The CX-7 arrived last fall. The CX-9 goes on sale this month. The Tribute will be redesigned this fall.
Robert Davis, senior vice president of product development and quality, thinks there is room for all five.
He cites demographic and psychographic differences between buyers who want a traditional SUV-looking vehicle such as the Tribute and those who fancy the racier CX-7. There also are differences between people who want a five-seat crossover such as the CX-7 and those looking for a seven-seat crossover such as the CX-9.
"They are different ages," Davis said. "They have different lifestyles. They have different needs."
Demographically, people who want a CX-9 are closer to minivan buyers than SUV buyers, said Chris Hill, vehicle line manager of product marketing.
"The CX-9 is not a CX-7 with a jump seat," Hill said. "It's a more hip and stylish alternative to a minivan or SUV, but with a true seven-seat layout."
Still, a niche brand such as Mazda should be careful how it overlaps segments, says Lincoln Merrihew, an analyst with TNS Automotive in Marlborough, Mass. "Mazda has done a pretty good job of distinguishing the products," Merrihew said.
For instance, the engine offerings among the five are much different. That allows salespeople to better distinguish the products. With the redesigned Tribute, Mazda also has a hybrid.
Is CX-9 too expensive?
Mazda is taking a risk by breaking the $30,000 barrier with the CX-9, Merrihew said. No Mazda since the ill-fated Millenia sedan of the mid-1990s has done that. The CX-9 can easily approach $40,000 with options.
Davis said Mazda shoppers spend upward of six hours researching vehicles online, so "there is less shock factor" when it comes to price.
But Mazda is following Subaru into deep waters. Subaru's $30,620 B9 Tribeca crossover was priced higher than most of the lineup. At launch, Subaru hoped to sell 36,000 units, then revised it to 28,000 in early 2006 after a slow launch. Subaru sold 18,614 units in 2006, its first full year.
Still, "It is safer for Mazda to go upscale with crossovers than with sedans, sport-utility vehicles or coupes," Merrihew said. "Mazda is hoping that the image premium of SUVs transfers over to crossovers, and that the segment doesn't get saturated."
Mazda5
Wheelbase: 108.3 in.
Engine: 2.3 I-4
Base price: $18,230
Volume: 12,000
Mazda6 wagon
Wheelbase: 105.3 in.
Engine: 3.0 V-6
Base price: $24,785
Volume: 8,000
Tribute
Wheelbase: 103.1 in.
Engine: 2.3 I-4; 3.0 V-6
Base price: $20,705*
Volume: 36,000*Tribute price for 2006 model
Note: Base prices include shipping. Volumes are 2007 sales estimates.
CX-7
Wheelbase: 108.3 in.
Engine: 2.3 I-4 turbo
Base price: $24,345
Volume: 45,000
CX-9
Wheelbase: 113.2 in.
Engine: 3.5 V-6
Base price: $29,630
Volume: 35,000
