Koeru crossover upstages Mazda MPS

Mazda has shelved plans to reintroduce its MPS sports brand and will instead broaden its crossover line-up to meet unabated global demand for SUVs.

As motoring.com.au reported in April, Mazda had planned to reveal a Mazda3 MPS concept at this week's Frankfurt motor show, but instead staged the world debut of the Koeru crossover concept.

While it's officially only a concept, the Koeru is based on the same platform as Australia's top-selling SUV, the Mazda CX-5, but is longer, wider and much lower.

Motoring.com.au understands the Koeru could reach production in as little as two years if it gets the green light – badged as either the CX-4 or CX-6 -- although its designer Iwao Koizumi admits that any showroom version would not be nearly as low-slung.

Mazda's global marketing chief Masahiro Moro admitted the Koeru was fast-tracked following recent Mazda research that revealed demand for coupe-crossover type wagons alongside traditional SUVs like the CX-3, CX-5 and CX-9.

"Since 18 months we have seen continuous trend shifting from conventional body styles to crossovers and as you know the premium brands have lots of body style versions. And because of the cheaper oil price since last fall the crossover series has gained momentum."

Moro said the Koeru was created to test market potential for an all-new mid-size Mazda SUV designed to capture upsizing Mazda3 hatch buyers after a more stylish vehicle than a boxier SUV.

"We did some studies of customers who own conventional body styles. They are still seeking a new body style solution.

"Our products and sales have been very heavily reliant on Mazda3, particularly five-door customers, but those customers may go in a new direction.

"So that is the thinking behind this new crossover concept – we are testing how this study model gets feedback to see if this is a useful model to add tour product portfolio.

"In general Mazda3 five-door customers are looking for a sportier execution. CX-5 is a good car but still may be seen as a very conventional SUV. They may not be satisfied."

Hatchback models account for the lion's share of Mazda3 sales, which are second only to the Toyota Corolla in the Australian new-vehicle market.

However, Mazda3 sales have eroded by the CX-5 since 2012, just as this year's all-new CX-3 has undermined Mazda2 sales.

But the Koeru will further hedge Mazda's bets, by increasing the number of models that contribute to its volume base, even if there is a level of sales cannibalisation between them.

"CX-5 is an all-round SUV with good space for families," said Motor. "This [Koeru] is more a fusion between crossover and sporty execution but with adequate interior space. CX-3 is smaller in terms of boot space so maybe Mazda3 customers aren't satisfied."

If it reaches production, the Koeru would have few direction competitors, except perhaps Nissan's QASHQAI, the more stylish crossover sister model the boxier X-TRAIL mid-size SUV, which outsells it almost two to one.

But as to where it would be positioned within the Mazda range remains "subject to study", said Moro.

"I think CX-4 or CX-6 – whatever you call it – this would be a more sportier, sophisticated execution [than CX-5].

"We have bundled architectures and we can use any powertrain, so we can define the sweet spot within the product portfolio."

Before the Koeru hits showrooms, Mazda's SUV line-up will be topped by the second-generation CX-9, which arrives Down Under next year after it appears at the Los Angeles show in November.

"Our priority is launching CX-9," said Moro. "It will be interesting to see how far we can build the Mazda brand in the higher price range."

Asked if any other holes needed to be filled in Mazda's line-up, such as a long-wheelbase seven-seat CX-5 that could revive the CX-7 nameplate, which Mazda has previously described as a "thought bubble", Moro said: "I don't know.

"We should be able to develop those kind of derivatives with our engineering capability based on bundled planning concept, but our intention is not too much increasing the nameplates to keep the product portfolio as tight as possible.

"There are many requests country by country. I think it's OK, but there might be a couple more body styles in future. From a global stand point our segment coverage is 50 per cent. In Australia it's close to 80 per cent. Probably we'd like to have 60 per cent globally in future."

Mazda has always said it would complete the SKYACTIV renewal of its core model range before reintroducing performance models like turbo or rotary sports cars. Mazda has just launched its new MX-5, but has been without MPS and RX models since 2012.

In the same interview Moro confirmed Mazda's long-awaited rotary sports car comeback by confirming an RX rotary sports car concept for next month's Tokyo show, but he put the kybosh on replacements for the Mazda3 MPS or Mazda6 MPS.

"MPS is not a short-term solution for us right now," he said. "We have other priorities. Our priority is to make our product portfolio complete.

"We have done strategic transformation for the last four years with all-new products and showrooms. Our priority is to fully leverage that and to keep customers loyal.

"So that is our next focus and Australia is already there.
[In Australia] The brand is strong, it is profitable, customers are satisfied, so Australia is kind of proof of concept model, but if you to other markets like the USA we are not there."

Mazda has confirmed its new CX-9 will be powered by the first turbocharged version of Mazda's [2.5-litre] SKYACTIV-G four-cylinder petrol engine, which was widely tipped to power successors for the Mazda 3 and 6 MPS.

But one Mazda insider told motoring a one-engine-fits-all approach would not do justice to the MPS brand, which would face serious competition from a range of potent small hot hatches, and also faced timing issues with the current Mazda 3 and 6 model cycles.

Confirming the about-face in Mazda's go-fast model strategy, he said no MPS models would be forthcoming inside the next few years as Mazda expanded its core model range, by which time Mazda's next-generation 'SKYACTIV II' line-up would starting rolling out, bringing with it "interesting" new MPS powertrain solutions to compliment its reincarnated rotary sports flagship as early as 2017.

"We don't deny more sporty execution in long-term but what we don't want is to limit it to one or two models -- it needs to be broader," said Moro, who made it clear MPS models will take a back seat to crossovers.

"I think to make our product portfolio complete is the priority. Because of the shift in the industry trend I found there might be a hole so we have to fix it, then MPS or high level performance model will give additional value to Mazda brand overall.

"Sporty execution can be done through this type of study model [Koeru] or other product line. MPS is a priority for the future, not now."