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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.

Trump declaration they're a security threat stuns Japanese automakers

TOKYO — Japan's automakers' lobby said on Tuesday it was dismayed by President Donald Trump's declaration that some imported vehicles and parts posed a threat to U.S. national security, as the industry braces for a possible rise in U.S. tariffs. Trump made the unprecedented designation of foreign vehicles on Friday but delayed for up to six months a decision on whether to impose tariffs to allow for more time for trade talks with Japan and the European Union. "We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed," said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association. "As chairman, I am deeply saddened by this decision," Toyoda, president of Toyota, said in a statement. Trump has threatened to impose tariffs of up to 25% on imported cars made by foreign automakers, a move which automakers have argued would ramp up car prices, curb the global competitiveness of U.S.-made vehicles and limit investment in the country, the world's No. 2 auto market. The United States is a vital market for Toyota, Nissan, Honda and other Japanese car makers. Autos and components are among the Asian country's biggest export products. Most of Japan's major automakers operate plants in the United States. The Japan Automobile Manufacturers Association notes that its automakers build about 4 million vehicles a year in North America, or 75 percent of what it sells here. Many are built for export, helping lessen the U.S. trade deficit Trump is concerned about. Major automakers have announced a slew of investments in the United States since Trump took office in January 2017 and put pressure on the industry to create more U.S. jobs. For its part, Toyota has pledged to invest almost $13 billion in the United States between 2017 and 2021 to boost manufacturing capacity and jobs. This includes $1.6 billion for a vehicle assembly plant in Alabama jointly run with Mazda. Government/Legal Honda Mazda Mitsubishi Nissan Toyota Trump

Honda Civic Concept is your average neon green, turbocharged show stealer [w/video]

At an auto show where the hottest cars and concepts are increasingly shown off the night before the official doors even open, surprises are rare. But Honda pulled off a big one this afternoon, with a nuclear green Civic Concept that takes dead aim at the brand's naysayers. Honda "concept" cars have tended towards the literal in recent years, and never has that been more exciting than with this coupe. The prelude to the tenth-generation Civic has a face that fits in well enough with the company's current lineup, but the rest of the bodywork feels far more JDM-inspired. The sides are complex without being too busy, and the bold graphic elements, especially the wraparound taillight, seem punctuate the mass. You might not dig the green meanie as much as we do, but if you're a Honda fan (even lapsed) the performance news should have you high-fiving your nearest bro. To start, Honda has confirmed that this Civic will be the first in the US to incorporate turbocharged VTEC engines. The turbo'd 1.5-liter four will get hooked up to both a six-speed manual and a CVT. Civic is also going to get a bodystyle that Honda has neglected in our country for too long: the five-door hatchback. A moment of silence, please... Of course sedans and coupes will be part of the mix, too. But perhaps the most exciting news for lead-footed fan boys will be the inclusion of both a Civic Si and the Nurburgring-champion Civic Type R for our market. We'd both hoped and suspected that the Type R might make the leap to North America, and Honda hasn't disappointed. The gen-ten Civic will go on sale in the US this fall, though no specifics have yet been offered about which variants will be first and last. Stay tuned. Honda Debuts Sportiest Civic Design in Brand History with 10th-Generation Civic Concept at New York International Auto Show - 10th-generation, 2016 model year Civic focuses on sporty, fun-to-drive dynamics - Civic lineup to include Sedan, Coupe, and 5-door Hatchback body types, as well as Si and Type-R versions - First Honda model to apply new VTEC® Turbo engines in North America Civic, America's most popular small car is designed, developed and produced in North America Today Honda unveiled its ultra-sporty Civic Concept at the New York International Auto Show as the brand prepares to launch its completely reimagined 10th-Generation Civic models beginning this fall.