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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.

Detroit automakers observing 8:46 of silence to mark Juneteenth

GM Executive Vice President of Global Manufacturing Gerald Johnson, right, talks with employees at the Fairfax Assembly & Stamping Plant in Kansas City, Kansas. (file photo - GM)     All three Detroit automakers are observing Juneteenth, a day commemorating the end of slavery, on Friday by observing 8 minutes and 46 seconds of silence, among other companywide efforts to advance the causes of social and racial justice and equality. Juneteenth marks the date, June 19, in 1865 when Union soldiers, led by Maj. Gen. Gordon Granger, arrived at Galveston, Texas, and announced the Civil War had ended and enslaved African Americans were to be freed. President Abraham Lincoln had officially ended slavery more than two years prior via the Emancipation Proclamation, but Union forces didn't reach Texas until that time, so there was virtually no enforcement. The 8:46 timestamp is significant because it was the length of time that a police officer in Minneapolis knelt on the neck of George Floyd during an arrest, ultimately killing him and sparking waves of protests across the U.S. and overseas. Autoblog asked automakers about their plans to mark Juneteenth, what they were doing to advance the cause of social justice for Black people, and how many African Americans they employ in both blue- and white-collar jobs. We heard back from GM, Ford, Fiat Chrysler and Honda but not from Nissan and Toyota. General Motors GM’s U.S. workforce is 17.2% Black and 69.2% white, according to its most recent corporate Diversity and Inclusion Report. GM's total global employment is 173,000, and it says women and minorities represent 40% of its team of corporate officers. For reference, the Census Bureau says African Americans make up 13.4% of the U.S. population of roughly 328 million people. White people constitute 76.5%. As previously reported, GM planned to pause production at its factories on each shift today and observe silence for 8 minutes and 46 seconds. The company will also have a digital countdown clock atop the GM's headquarters in Detroit for the moment of silence. Additionally, Chairman and CEO Mary Barra has said she will lead a new Inclusion Advisory Board made up of people from within and outside GM to suggest areas for change and hold the company to its commitments to fight injustice and racial inequality.

2016 Honda Pilot packs more of everything

Honda has come a long way over the course of its history, evolving from motorcycles to automobiles, marine engines, power equipment, robots and even jet aircraft. But its biggest push over the past couple of decades has been in crossovers and SUVs. From the Passport that was rebadged from the Isuzu Rodeo in the early 90s, Honda's high-riding lineup has expanded to include the CR-V, the smaller HR-V, the oddball Crosstour, the soon-to-be-updated Ridgeline pickup, a smattering of luxury crossovers from Acura, and this, the biggest of them all, the Pilot. And Honda has just revealed an all-new version here at the Chicago Auto Show. Now in its third generation, the all-new 2016 Honda Pilot is, like its predecessors, a three-row family-hauler. Compared to the decidedly boxy model it replaces, the new Pilot is certainly more dynamically styled to more closely match the latest crossovers in the Honda lineup, but it may start to resemble the Odyssey minivan (with which it shares its underpinnings) too closely for some tastes. The new Pilot is three inches longer than the model it replaces, primarily to the benefit of cargo space: Honda says you can now fit a full-size 82-quart cooler in the back without infringing on the third row of seats – ingress and egress from which are now enabled by a power folding second row that opens a wider aperture to the back to more easily fit in all eight passengers. (That is, unless you go for the available second-row bucket seats that reduce capacity to seven.) Interior amenities are increased all around, with a proliferation of power outlets and connectivity ports and an available panoramic roof. Despite the growth, though, the new Pilot is 300 pounds lighter than the model it replaces. It is also built on a more solid platform, to the benefit of handling, crashworthiness and NVH insulation. Of course the new Pilot benefits from all the latest safety and driver-assist systems, and Honda anticipates top ratings from both the National Highway Safety Administration and the Insurance Institute for Highway Safety. Power comes from a 3.5-liter V6 with all the tricks in the book (short of a hybrid assist) to make it as economical as possible. The i-VTEC engine has direct injection, cylinder deactivation, stop/start ignition and an automatic transmission with either six or (for the first time from Honda) nine speeds, depending on the trim level. Buyers will also be able to choose between front- or all-wheel drive.