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Honda S660 proving popular with middle-age Japanese buyers

The S660 roadster has been a success so far for Honda. (At least, that is, insofar as a niche-market sports car limited to the Japanese Domestic Market can be considered a big seller.) It just hasn't resonated with the customers that the company expected. Honda revealed the S660 in concept form at the Tokyo Motor Show nearly two years ago, and subsequently put it into production. The convertible Kei car pays homage to models like the S500, S2000, and Beat. It packs a tiny 660cc three-cylinder engine mounted amidships and driving the rear wheels. Despite its connection to past models, the S660 features an entirely modern design that, along with its low price, was expected to appeal to younger buyers. But while Honda has already sold out all 8,600 examples it's slated to build this year, a surprising 80 percent of them have been snapped up by customers over the age of 40 who are mostly buying them as second cars. The development is not entirely isolated. As Bloomberg points out, the number of licensed drivers in Japan "under the age of 40 has fallen 46 percent over the last 13 years." Those are rather startling numbers that dwindle the market down for youth-oriented vehicles like the S660. Honda is expected to begin taking orders for next year's allocation of S660s in October. At that point, the company anticipates the average age of its customer base will drop. But with fewer young drivers on the road in Japan, it shouldn't expect it to drop by much.

Acura organizes new business division to confront falling sedan sales

Honda and Acura North America have announced a major restructuring of operations in hopes of turning around Acura's flagging business. For 2013, sales for Acura's sedans dropped 10.4 percent, while its CUV sales grew by 21 percent. The newly formed Acura Business Planning Office will attempt to right the ship.
As part of the restructuring, Acura is promoting Erik Berkman from President of Honda R&D Americas to lead a new division called the Acura Business Planning Office. Berkman has been with Honda since 1982 and led development of the 2006 Accord. He was also the first US engineer to head North American research and development and has been head of Honda Performance Development since 2008. "Erik's appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura," said Honda spokesperson Jeffrey Smith to Automotive News.
American Honda Motor President and CEO Tetsuo Iwamura is also going to be working to improve the business. He has been elected chairman of American Honda's board, and has simultaneously taken the new position of Corporate Brand Officer to improve the management of the company's brands.

Honda invests $25m on hot-weather testing facility in Mojave

Situated in the Mojave Desert near Cantil, CA, the Honda Proving Center of California is a 4,255-acre facility incorporating a 7.5-mile high-speed oval and a 4.5-mile road course. The location also has a series of off-road routes for testing trucks, dirt bikes, and the like. It first opened in 1990 but ceased functioning twenty years later, after which we saw it listed for sale online. Honda evidently had a change of heart, and is now setting about refurbishing the facility and putting it back into active duty. Backed by an investment of $25 million, the warm-weather proving ground is set to reopen next April. Exact details of the renovation plan have not been announced, but the existing features are set to be refurbished and some new ones added to the site. Honda currently undertakes most of its vehicle testing in America at the Transportation Research Center located near its plants in East Liberty and Marysville, OH. It also operates to major proving grounds back home in Japan in Takasu and Tochigi, and a dedicated motorcycle R&D center with its own test track in Asaka. It also owns the Motegi complex, complete with road course and oval speedway, near its main facility in Tochigi. Related Video: Honda to Enhance California Proving Center in 2016 $25 million investment will renovate the warm weather testing facility Dec 8, 2015 - TORRANCE, Calif. Driven by the expanding responsibility for developing new automotive and power sports products in America and the related need for performance testing, Honda will invest $25 million to renovate the Honda Proving Center of California (HPCC) in the Mojave Desert near Cantil, California. The proving center, which was in operation from 1990 through 2010, is scheduled to reopen in April 2016. The 4,255-acre warm weather testing facility features a 7.5-mile high speed oval track and a 4.5-mile winding road course that will be completely refurbished. The renovations also will include the addition of some new vehicle test road enhancements to the property. "As we continue to accelerate our growth in the U.S. market with a competitive line up of cars and trucks designed and developed in the U.S., we are reinvesting in HPCC to create a world-class test facility," said John Mendel, executive vice president of the Automobile Division of American Honda Motor, Co., Inc.