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Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

Hurricane Sandy cost automakers 15,000 vehicles, may have ruined up to 200k

Hurricane Sandy was the largest Atlantic storm in US history, and its total economic impact is just now coming into view. According to Automotive News, Toyota, Chrysler, Nissan and Honda are set to scrap around 15,000 new vehicles ruined by the storm. Nissan alone accounts for about 40 percent of those, with 6,000 Nissan and Infiniti models deeded "un-saleable" due to damage. The company saw 56 dealerships shuttered due to the storm, but 51 of those have since reopened.
Toyota, meanwhile, had some 4,000 vehicles at its Newark port facility, and of those, 3,000 may be scrapped. An additional 825 were dealer inventory when they were ruined. Honda and Acura dealers are reportedly sending 3,440 vehicles to the salvage yard. By comparison, Chrysler weathered the storm fairly well with 825 units destroyed, while Hyundai suffered only 400 lost units and Kia scrapped around 200.
As you may recall, Fisker also suffered some losses, and Automotive News reports the manufacturer saw 320 Karma models damaged beyond repair. Ford and General Motors have yet to come up with estimates, and no automaker has commented on the full cost of replacing the vehicles.

Honda recalling 183k cars and crossovers over unintended braking issue

A recall has been issued for nearly 183,000 Honda and Acura brand vehicles from the 2005 and 2006 model years. The problem stems from a potential malfunctions to the vehicles' stability control and braking systems.
Drivers have reported a malfunction to Honda's Vehicle Stability Assist system, though to date, no crashes or injuries have been reported as a result of it. Some of the vehicles' Vehicle Stability Assist (VSA) control units may have an electric capacitor that was damaged during manufacture. A damaged control unit could cause the VSA system to apply brake force for a "fraction of a second" without any driver input, or could add additional brake force if it malfunctions while the driver is already braking. Either example could increase the risk of a crash.
To fix the issue, Honda will install a new electrical sub-harness, free of charge to the owner. The recall specifies 101,000 Honda Pilot (pictured), 60,000 Acura MDX and 21,000 Acura RL vehicles from the 2005 model year will be affected. An additional 800 MDX crossovers from the 2006 model year are also included in the recall. In addition, 51,000 of the affected 2005 Pilots will be inspected to be sure that a ground bolt for the VSA system is properly tight. Should this bolt come lose, similar unexpected brake activation may occur.