Mazda Pulls Plug on CX-7 in U.S.

MONTEREY, CA – Mazda is yanking its CX-7 model from the American market, saying the cross/utility vehicle simply doesn’t fit into its U.S. lineup with the recently launched CX-5 CUV.

“We’re excited about the CX-5’s sales potential, and we’re expecting aggressive sales in the 2012 calendar year,” Robert Davis, executive vice president-U.S. operations, tells WardsAuto during a media event here. “So CX-7 is ending production (for the U.S.) in 2012, and CX-5 is replacing it.”

Davis says the Japanese auto maker expects to sell 40,000 CX-5s here annually. But the move to drop the CX-7 remains somewhat surprising, given sales of the model have been on the upswing. Last year, Mazda delivered 35,641 CX-7s in the U.S., according to WardsAuto data.

The CX-7 stumbled out of the gate when it was launched in 2006, with only 22,325 sold in the U.S. in its first year.

Mazda ultimately decided the CX-7’s turbocharged direct-injection spark ignition (DISI) 4-cyl. engine wasn’t a good fit for the midsize CUV segment. In an attempt to compete more directly against the smaller Toyota RAV4 and Honda CR-V, it de-contented the vehicle for the ’10 model year and added an optional 2.5L normally aspirated 4-cyl.

Although the move boosted demand, it wasn’t enough to justify the CX-7’s existence, particularly with the CX-5 positioned as a more direct challenger to the RAV4 and CR-V.

There were 6,068 ’11 and ’12 model CX-7s in stock at U.S. dealers at the end of February, good for a 72-day supply, according to WardsAuto data.

Mazda couldn’t simply badge the CX-5 as a new CX-7, “because the CX-7 will be sold in other parts of the world,” Davis says. “So the strategy is to keep it alive elsewhere, but the CX-5 is our main focus in the U.S. going forward.”

Mazda doesn’t identify all the markets that will continue offering the CX-7, but Tim Barnes, director-product planning and strategy, tells WardsAuto the CUV will remain in the lineup in China and Mexico.

Both markets are less sensitive to fuel prices, and the CX-7’s high-powered DISI engine appears to have more appeal in those countries. Exchange rates also favor the peso and yuan over the yen.

“The exchange rate helped us position that car against the competitive (CUV) set,” Barnes says. “So we were able to hold the positioning down slightly in Mexico, as well as in China. Also, there is a (stronger) consumer desire for higher-performance cars.”

The CX-5 is powered by a 2.0L 4-cyl. producing 155 hp at 6,000 rpm and 150 lb.-ft. (203 Nm) of torque at 4,000 rpm.

The new CUV is the first vehicle to offer the full suite of Mazda’s Skyactiv technologies, which encompass nearly every aspect of a vehicle and are focused on increasing fuel economy without sacrificing performance.

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