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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.

2014 Acura MDX priced from $42,290*

The fully redesigned 2014 MDX goes on sale in July, and Acura has now confirmed that its largest crossover will be priced at $42,290 (*plus $895 for destination). Unlike previous MDX models, Acura will offer the 2014 model with both front- and all-wheel drive (the automaker's fantastic Super-Handling All-Wheel Drive, at that), and this base price is for the standard, two-wheel-drive MDX model. At the base level, this new pricing represents a $990 decrease over the outgoing, AWD-only 2013 model.
Four trim levels will be offered across the range, all of which use Acura's direct-injected 3.5-liter V6 engine good for 290 horsepower and 267 pound-feet of torque, mated to a six-speed automatic transmission. Standard features include things like push-button start, Acura's fancy new Jewel Eye LED headlights, the next-generation AcuraLink system, an eight-inch multi-function display screen, blind spot monitoring and a premium sound system.
Moving up from there, the Technology package ($46,565) gains 19-inch wheels (18s are standard), forward collision warning, lane departure warning, a color TFT display, rain-sensing wipers and more. The Entertainment Package (bundled into one $48,565 model) adds rear seat entertainment to all of that. At the top end, the MDX Advance model gets unique wheels, remote engine start, 12-speaker ELS premium audio, adaptive cruise control and more. Adding Super-Handling All-Wheel Drive to any of these models results in a $2,000 price jump.

Acura puts on display of mechanical horsepower in new ad

Originally forged with a brand identity based on luxury, sportiness and practicality, Acura has spent the last decade or so struggling with its image. The sporting credibility suffered a mighty blow with the loss of cars like the Integra, RSX and NSX, and recent years have seen the Japanese company attempting to recast itself as a technology leader.
All of that makes this latest Acura commercial, Let The Race Begin, even more difficult to understand, metaphorically speaking. The horsepower-horse race 'theme' certainly isn't difficult to fathom, with mecca-equine versions of popular luxury brands filling the screen. But the choice to make Acura's filly a flesh-and-blood creation seems odd, for the high-tech theme. Acura as "thoroughbred apart from the rest of the field" seems to be the rough message here, though we're not sure we're buying it. We're also not sure we're comfortable with how much these ponies reminded us of a certain off-putting robotic dog...
Looks expensive, at any rate. Watch the robot ponies run for yourself, below.