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Honda reports $1.9 billion profit in first quarter despite sales lag at home

Ford, General Motors and Chrysler have been living in a world of sunshine and buttercups after their April-through-June financials hit the newswire, and Toyota is doing pretty good as well. Honda? Not so much.
While Japan's third-largest manufacturer saw $1.9 billion in profits, the 5.1-percent jump was lower than expected thanks to a drop in its home-market sales. US sales also took a sting, as Honda hasn't been able to match the SUV and truck demand that are currently permeating the American market, despite an uptick in Accord sales.
Honda's initial forecasts targeted a take of 209.3 billion yen ($2.1 billion at today's rates), and while a $200 million shortfall is nothing to sniff at, we'd hardly take this as Honda being in trouble. And even with the dip, Honda hasn't adjusted its forecast for the fiscal year, which remains at 780 billion yen ($7.9 billion).

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.

Acura recalling 43k MDX and RLX models over seatbelt issue

If you've ever lived in a wintery climate, you may have noticed something strange: no, not the perilously enticing sparkle of cold metal in the sunlight or the way your warm breath suddenly becomes visible in the frigid air, but the way your seatbelt seems increasingly reluctant to retract as the temperature drops. Acura, however, has found the problem more serious than a minor inconvenience, and is recalling some 43,000 vehicles across the United States to address the issue.
The recall in question affects about 7,000 RLX sedans (from the 2014 model year) and another 36,000 MDX crossovers (covering the 2014 and 2015 model years) to have their front seatbelts replaced. In the affected vehicles and in very low temperatures, Acura has found that "the driver's and front passenger's seatbelts may not release from the retracted position." Needless to say, seatbelts that can't be used don't offer any protection in the event of an accident, so the Japanese automaker is notifying owners and dealers to hook up to have those seatbelts replaced.