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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.

Honda invests $215M in Ohio Earth Dreams production

Honda has announced a $215 million investment in a pair of its Ohio operations, taking its total tally for North American operations up to $2.7 billion in three years. The announcement was made at the 2013 Center For Automotive Research Management Briefing Seminars in Traverse City.
$180 million of the investment is earmarked for Honda's Anna, OH engine plant. The money will allow the facility to increase its aluminum die casting and increase production of Honda's Earth Dreams Technology engines. Think of Earth Dreams as sort of like Mazda's Skyactiv line, only ED is limited to a new line of engines, rather than a full suite of automotive components. Anna will also be getting a new technical center to train engineers, techs, and line workers on powertrain technology.
The remaining $35 million is slated for Honda's main Ohio operations in Marysville. A 160,000-square-foot facility will be constructed near Honda's current properties, which will house another technical training center to focus on automotive manufacturing. The new building will also house Honda's North American Services group, as well as a new heritage center.

Toyota Camry to go turbo

As automakers strive to meet regulations, turbocharging is rapidly becoming the norm whether looking at pickups, sports cars or family sedans. However, Toyota remains a stalwart to the changing tide, and for the time being a trip into one of the brand's dealers shows nary a hint of forced induction – probably not for long, though. With models like the Lexus NX 200t and forthcoming IS 200t pointing the way, a big shift is afoot for one of the Japanese automaker's most popular products. Obviously, Toyota is no stranger to forced induction for performance applications like the turbocharged models of the Supra and MR2 in the '90s. But rather than reducing lap times, the latest application is more about improving emissions and fuel economy. According to Automotive News, the Camry is getting a 2.0-liter turbo four-cylinder in the near future as a replacement for its V6 engine option. The 3.5-liter six currently in the venerable sedan already makes 268 horsepower and 248 pound-feet of torque, versus 235 hp and 258 lb-ft in the NX 200t or 241 hp and 258 lb-ft in the IS from the new four. The base four-cylinder also might receive some upgrades. It could grow larger and run on the Atkinson cycle to find improvements, according to Automotive News. There might be a move towards CVTs, as well. Toyota is hardly alone in the shift towards forced induction. Honda is known to have a 1.5-liter turbo mill on the way for the next-gen Civic. In addition, that engine might find its way into the Accord and CR-V as well, according to Automotive News. Among the major Japanese automakers, only Nissan is taking a more measured approach towards forced induction in mainstream models. Rather than going all-in on turbos, the company is expected to shift more of its engines to direct injection to go after fuel economy gains.