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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.

2016 Honda Civic Coupe spied inside and out

Honda may be prepared to unveil the 2016 Civic Coupe on Sept. 16, but that doesn't mean work is done on the eagerly anticipated new fastback. Honda is continuing testing, as evidenced by this latest round of photos, which even gives us a glimpse of the cabin. As we can see, the exterior's shape has been toned down compared to the concept shown earlier this year in New York City, although the overall fastback rear end, high beltline, and generally aggressive styling is still present. Closer details, particularly around the front fascia, are harder to discern owing to the camouflage. The last-generation Civic did things very wrong. It went budget at a time when compact consumers demanded more premium features, options, and materials. Things were so bad that Honda had to rush a lackluster refresh to market. But with the new Civic, it finally looks like the Japanese brand is on its A-game. While plastic appears to still be the dominant material, the quality on display looks like it's been elevated substantially. The steering wheel is small, relatively sporting, and wrapped in black leather, while the beige leather seats look to have a modest dose of bolstering. The switch gear looks good, almost like it's been plucked from a higher-end model, like the Pilot, while our spies report that there will be a better array of optional extras, including stuff that's shown up as part of the Honda sensing suite of technology. Check out the spy images at the top of the page, and be sure to head back here on Sept. 16 for the Civic's official unveiling. Related Video:

Struggling McLaren-Honda F1 partners near 'fork in the road'

WOKING, England - McLaren's partnership with Honda has not worked so far, and the team is now approaching a "fork in the road," executive director Zak Brown said on Wednesday. Speaking to Reuters in his office at the Formula One team's headquarters, Brown (pictured above) indicated clearly that a parting of the ways was a real option under consideration by management. The American said engine upgrades promised for this weekend's Canadian Grand Prix were not ready, and the Japanese manufacturer could not say when they might be. And while McLaren still wanted to win championships with Honda, there were serious concerns as to whether that was achievable. "Honda's working very hard, but they seem a bit lost," said Brown, who replaced Ron Dennis at the helm late last year. "We were only told recently that we wouldn't have the upgrade coming (for Montreal) ... and we don't have a definitive timeline, which is concerning because the pain is great and we can't sit around forever. "We were eagerly awaiting this upgrade as were our drivers, and it's a big disappointment that it's not coming. It's not lack of effort, but they are struggling to get it to come together."FAILURE AND EMBARRASSMENT McLaren, the second oldest and most successful team in Formula One after Ferrari in terms of race wins, are the only ones yet to score a point this season. They have not won a race since 2012. The renewed partnership with Honda in 2015 was billed as a return to the glory days, when French great Alain Prost and the late Brazilian Ayrton Senna dominated the late 1980s and early 1990s. Instead it has brought failure and embarrassment to the former world champions, whose cars have failed to finish races -- and sometimes even start them -- due to engine failures. Spanish driver Fernando Alonso, a double world champion whose future is uncertain, said in March that "we have only one problem, and that is the power unit. There is no reliability and there is no power." Honda's engine troubles even plagued Alonso at the Indy 500, where a failure took him out of the race. McLaren were ninth in 2015, sixth last year and this season could become their worst ever. MARCHING ORDERS "The executive committee have now given us our marching orders," said Brown, who is also chairman of the fast-growing Motorsport Network media group. "We're not going to go into another year like this, in hope." "I don't want to get into what our options are.