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Honda exec says US market near capacity, could hurt subprime buyers

Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
According to Automotive News, Mendel believes that finding more customers in the market could require pursuing subprime buyers and offering longer-term loans. However, he refuses to use those tactics. While selling models this way can improve things briefly, the strategies hurt resale prices and lower vehicle profits over time. The company won't do "stupid things in the short-term that damage the person who bought yesterday," he said to Automotive News. "It's a very, very short-term tactic especially in the subprime area."
American Honda, which combines the Acura and Honda brands, has seen market share decline from 9.7 percent to 9.1 percent through July 2014, according to Automotive News, and Autoblog's By the Numbers stats showed it posted falling sales in five of the seven months with data this year. Though, Mendel claims that was partially because the company focused on retail sales over fleets. The delays of the launches for the Honda Fit and Acura TLX likely didn't help either.

2015 Acura NSX burns to the ground at the 'Ring [w/video]

Assuming all goes to plan, automakers test their vehicles to the breaking point in the months and years leading up to that vehicle's actual release into the public. Which is good, because it's much better for a car to break in glorious fashion in the hands of the company that produces it than in the driveway of an owner who just spent their hard-earned cash to get it.
Such was the case with this production-guise Acura NSX prototype that we saw running around the Nürburgring just the other day. We can't be 100-percent certain, but the burned-out carcass is wearing the same number plate as the car that was spotted earlier, so it's likely the very same NSX. We have no idea what was the cause of the blaze that turned this Acura into the car-b-q you see pictured above, but our spy shooters on the ground in Germany say it was not involved in any collision, having caught on fire all on its own with engineers behind the wheel.
The good news is that nobody was hurt, though the car is quite clearly a complete loss. We're sure there's another ready to to test in the burned car's place... just as soon as the engineers at Honda figure out exactly what went wrong. Have a look at the smoldering aftermath up above, and feel free to scroll down below to see a video of the car in much better circumstances.

Acura ILX headed for Civic-like early upgrades

The not-yet-ready-for-primetime 2012 Honda Civic saw it quickly returned to sender for refurbishment, now the Acura ILX is headed in the same direction in its very first year. Automotive News reports that the small, Civic-based sedan from Honda's luxury brand isn't meeting sales expectations, with an annualized rate of 22,000 to 24,000 sales instead of the 30,000 the company is after. More telling is that the ILX "is being outsold by the Buick Verano, Volkswagen CC and Audi A4," and, except for two months since it launched, it has also been outdone by the Acura TSX it is meant to replace.
Part of the cause has been the 2.0-liter, four-cylinder engine: its 150 horsepower to motivate a sedan that can weigh up to 2,970 pounds doesn't offer the kind of performance or value experience that buyers in the segment respond to. Another big issue is that the top-level 2.4-liter engine is only offered with a six-speed manual even though most buyers of the highest trim don't really want to shift their own gears. Lastly, the ILX might not put enough space between it and its frugal underpinnings - our first drive review pegged it as "the world's nicest Honda Civic."
An automatic transmission is on the way for the 2.4-liter, but it isn't clear when. And while Honda admits that the 2.0-liter is underpowered and Automotive News says it's on the way out, the company hasn't yet said how that situation will be corrected.