2014 Honda Accord Touring on 2040-cars

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Honda profit targets tumble in wake of Takata scandal

Takata's massive airbag inflator recall will likely do some damage to Honda's bottom line this year, according to the Japanese automaker's latest forecasts. The company will allocate 50 billion yen ($425 million) to fulfill costs related to the safety campaigns, Reuters indicates. The decision will reduce estimated operating profit by about 6.5 percent to 720 billion yen ($6.1 billion US) for the fiscal year ending March 31. In addition to lower profits, Honda also cut back its sales estimate for the year to 4.45 million vehicles from the previous 4.62 million, according to Reuters. This was largely due to lower-than-expected demand in Japan. "We are not seeing a big impact on sales in North America from the airbag issue," company vice president Tetsuo Iwamura (pictured above) told Reuters. The decreased forecasts come at the same time as the possibility of another death in a Honda vehicle from the Takata parts. According to Automotive News, a man in Florida died in a crash in his 2002 Accord, but investigators have not yet determined whether the inflator was the cause. However, the vehicle was included in a 2011 recall for the part and was not repaired. The family intends to file a lawsuit alleging the inflator ruptured, spraying metal shrapnel into the driver's neck. Reportedly, the owner was never notified of the recall. While the Takata inflator recall is affecting many companies with alleged links to at least five deaths and 139 injuries worldwide, Honda has it among the worst. Including vehicles covered under the previous regional repair campaign for the issue, the automaker needs to repair roughly 5.4 million vehicles just in the US. Honda has taken action by employing suppliers other than Takata to supply some of its replacement parts for the recall. The business is also reportedly switching airbag suppliers for the next-gen Accord and possibly the 2016 CR-V and Odyssey.

180,000 new vehicles are sitting, derailed by lack of transport trains

If you're planning on buying a new car in the next month or so, you might want to pick from what's on the lot, because there could be a long wait for new vehicles from the factory. Locomotives continue to be in short supply in North America, and that's causing major delays for automakers trying to move assembled cars.
According to The Detroit News, there are about 180,000 new vehicles waiting to be transported by rail in North America at the moment. In a normal year, it would be about 69,000. The complications have been industry-wide. Toyota, General Motors, Honda and Ford all reported experiencing some delays, and Chrysler recently had hundreds of minivans sitting on the Detroit waterfront waiting to be shipped out.
The problem is twofold for automakers. First, the fracking boom in the Bakken oil field in the Plains and Canada is monopolizing many locomotives. Second, the long, harsh winter is still causing major delays in freight train travel. The bad weather forced trains to slow down and carry less weight, which caused a backup of goods to transport. The auto companies resorted to moving some vehicles by truck, which was a less efficient but necessary option.

Sampling toys and tools in the Honda Dream Garage

I have two Hondas in my modest garage. One is a 1972 CB450 that I cherish but rarely ride, the other a 2014 HRR216 mower that my neighbors probably wish I'd use more often. Not quite dream garage material, but I like my trusty Hondas all the same. So I was pretty geeked to visit what Honda calls its Dream Garage. Spoiler alert: There was no actual garage. The various Honda products were spread out over a few acres of private land. And before you ask, no, the HondaJet wasn't in attendance. No confining garage meant I got to try a bunch of this stuff out. Honda makes such a wide variety of products, and so many of them, that it is the number one maker of engines in the world, having built 28 million in 2014. Highlights included a smattering of motorcycles, some rugged side-by-sides, the Uni-Cub assistive mobility device/powered stool, a few boats, Honda's latest cars, and snowblowers. Yep, in Southern California in July. They used damp sawdust for demonstrations, which meant I got to run a giant snowblower in a t-shirt. Watch the video above to see me ride, drive, walk behind, and be assisted by some of Honda's latest gear that isn't a car. Some of my favorites: The Grom. I've wanted to ride one since it came out a couple years back. This miniature motorcycle is hilarious and surprisingly rideable given its 125-cc single, which puts out about eight horsepower. It'll do 45 mph pretty easily, which feels fast on this baby bike. The only thing that takes getting used to is the time required to glance down at the instruments – they're way down there. Otherwise, it's a normal motorcycle with tiny wheels and a tinier engine. Riding the Uni-Cub was another dream experience of mine. It's much more intuitive than a Segway and makes you look slightly less goofy. I felt like I was in an OK Go video. It was neat. One item that didn't make the video is the NM4 you see here: crazy anime-inspired styling, a dual-clutch transmission, and then more crazy styling. The DCT means your left hand and foot get a rest. I still grabbed for the clutch every time I started the bike, though. Old habits and their hard deaths. Honda is also putting a dual-clutch transmission into one of its newest side-by-side offerings, but it was only on display and not available to pilot. I drove one with a traditional auto and another with an automated manual – and paddle shifters!