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Sony Honda EV venture's plan for online sales has dealers squirming

TOKYO/DETROIT — A new joint venture formed by Japan's Sony Group Corp and Honda Motor plans to introduce a premium electric vehicle later this decade, and the automaker's U.S. dealers are anxious to be part of the sales process. Sony Honda Mobility said on Thursday it was aiming to deliver the first of the unnamed EV by 2026, starting in the United States, and will sell them online. The success of Tesla at selling EVs without franchised dealers is putting pressure on established automakers to overhaul their retail networks. That leaves dealers across most brands concerned about their place in the changing world and whether profits will be squeezed. The online aspect of the Sony Honda plan, as well as the lack of details around how the vehicle will be sold and serviced, has raised questions with the Honda and Acura brand dealers. Many nonetheless expect Honda to work through the existing retail network. "These issues are certainly a concern," said Brian Benstock, general manager and vice president of Paragon Honda and Paragon Acura in Queens, New York. "The best path forward is with the dealers." "We have a role (automakers) can't replicate," said Benstock, who also is on the Acura national dealer advisory board and has spoken with Honda officials about the new vehicle. "There's no way that Honda wants to hurt their existing dealer body." Some dealers questioned why Honda would even consider trying to work outside the current U.S. sales network given its national reach. Honda has about 1,100 Honda dealers and 270 Acura dealers. A Honda spokesperson referred questions about the joint venture to the new company. Sony Honda spokesperson Mai Nagadome said there are still a lot of details to finalize, but selling through the dealers has not been ruled out and customers would feel uneasy without some kind of after-sales service process. "The cost of continuing to develop (internal combustion engine) products along with EVs and autonomous tech and software for the next generation vehicles is proving to be quite the challenge," said Peter Hennessy, dealer principal of Atlanta-based Hennessy Automobile Companies, which includes a Honda store. "I get teaming up with Sony, but it should be done in conjunction with the dealer network, not outside it," he added.

Beleaguered Takata unlikely to seek automaker assistance

Takata is continuing to deal with the massive airbag recall for millions of vehicles, but even if it doubles production, it could take years the company to build enough replacement parts to properly repair all of the affected models. If the supplier takes a hard enough financial hit whether through fines, lawsuits or just the cost of making the components, then the business might not be able to keep up production. Such a situation could put automakers in the very difficult predicament of deciding whether to provide Takata with financial assistance. Honda for one has little interest in lending further support to the beleaguered supplier, according to The Wall Street Journal. The Japanese automaker recently dropped its annual sales targets to put a larger emphasis on vehicle quality, partially in response to the inflator recall. It also struck a deal with another company for replacement parts and was rumored to abandon Takata for some future business. Honda CEO Takanobu Ito did leave the door barely cracked for possible aid. "Takata itself needs to figure out how to fulfill its duties, but if it makes any request to automakers, then we would think about that," he said, according to The Wall Street Journal. There isn't much likelihood of Takata needing a bailout, though. According to The Wall Street Journal, analysts aren't concerned about the company's short-term fortunes, and the supplier had about $728 million in cash as of last September. News Source: The Wall Street Journal - sub. req.Image Credit: Toru Yamanaka / AFP / Getty Images Earnings/Financials Recalls Honda Safety Takata airbag recall

2016 Honda Odyssey Special Edition bundles entertainment system, vacuum for $34,255

The crossover may have supplanted the minivan's popularity, but few vehicles match the capabilities provided by two big, sliding doors and a huge cabin for larger families. With that fact in mind, Honda has updated its highly popular Odyssey with a new Special Edition trim for 2016. Here's what you need to know. The Odyssey SE builds on the $33,305 EX trim by adding a rear-seat entertainment system with a 115-volt rear outlet, the HondaVAC vacuum cleaner, and satellite radio. Total cost for this family friendly tech? An agreeable $34,255, or less than $1,000. That price is extremely favorable compared to the 2015 Odyssey, where an entertainment-equipped Odyssey required the EX-L trim and retailed for $38,255, and a HondaVAC demanded the top-of-the-line Touring Elite trim and a check for $45,480. Bringing the entertainment system and HondaVAC into lower trim levels isn't going to impact the rest of the Odyssey lineup, though. The EX-L with rear-seat entertainment will still be offered, and its price has only jumped $550, while the Touring Elite's price has only jumped $150. And while it might seem like Honda is giving away the farm with the new SE, it's still worth noting that the EX-L adds a lot to the EX package, including a number of safety features, as well as heated leather seats and a power liftgate. Related Video: 2016 Honda Odyssey Poised to Clean Up and Entertain with HondaVAC™ and Rear Seat Entertainment Now Applied to New Special Edition Model High-value Special Edition includes premium features such as Rear Entertainment System, SiriusXM® Radio and HondaVAC™ to offer families even more choice of Honda's award-winning minivan Aug 3, 2015 - TORRANCE, Calif. The 2016 Honda Odyssey goes on sale August 4 with a trim lineup expanded to eight models and a starting Manufacturer's Suggested Retail Price (MSRP)1 of $29,275. Slotted between EX and EX-L trims, the MSRP for the new Special Edition (SE) is $33,375 With the acclaimed HondaVAC® and a comprehensive selection of premium features available lower in the trim lineup, along with class-leading EPA fuel-economy ratings of 19/28/22 mpg2 city/highway/combined, the 2016 Odyssey is designed to comfortably and efficiently accommodate the lifestyles of American families.