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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Honda recalls 2016 Pilot for warning light issue, 35k affected

Honda is recalling 35,406 examples of the 2016 Pilot in the US because the vehicles' warning lamps might not activate immediately. Specifically, the campaign covers two-whee-drive models with build dates between May 4, 2015, and September 8, 2015, and four-wheel drive versions from between May 7, 2015, and September 4, 2015. Due to this issue, if there's a malfunction in aids like the tire pressure monitoring system, anti-lock brakes, or electronic stability control, the corresponding warning light might not immediately illuminate on the instrument panel. When the ignition is turned off and then back on, the alerts do appear. Still, the fault puts the Pilot out of compliance with federal rules. Beginning November 27, the fix will simply be updated instrument cluster software for the affected Pilots. According to documents submitted to the National Highway Traffic Safety Administration (PDF): "As of October 8, 2015, Honda has not received any warranty claims, field reports, injuries or crashes related to this issue." Related Video: RECALL Subject : Improper Software to Module FMVSS 126,135,138 Report Receipt Date: OCT 16, 2015 NHTSA Campaign Number: 15V668000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 35,406 All Products Associated with this Recall Vehicle Make Model Model Year(s) HONDA PILOT 2016 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2016 Honda Pilot 2WD vehicles manufactured May 4, 2015, to September 8, 2015 and 2016 Pilot 4WD vehicles manufactured May 7, 2015 to September 4, 2015. In the affected vehicles, when one of the safety systems such as tire pressure monitoring, anti-lock braking or electronic stability control malfunctions, there is potential that the instrument panel will not illuminate the corresponding warning light, however the warning lamps will illuminate when the ignition is turned off and then turned back on. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 126, "Electronic stability control systems", number 135, "Light vehicle brake systems" and number 138, "Tire pressure monitoring systems". CONSEQUENCE: If a safety system cannot immediately warn the driver when needed, the driver may be at at increased risk of a crash. REMEDY: Honda will notify owners, and dealers will update the instrument cluster software, free of charge.

In Honda Super Bowl ad, Ridgeline teaches sheep to sing

Honda hopes that its Super Bowl ad's combination of a classic Queen song and an adorable premise are enough to get customers excited about the 2017 Ridgeline. The 60-second spot for the new pickup airs during the game's third quarter, and the commercial is sure to leave Somebody to Love stuck in your head. The spot titled A New Truck to Love stars a sheep rancher who likes to listen to Freddie Mercury while hauling animals to the field. He even uses the truck's bed-mounted stereo to enjoy some tunes while at work. The sheep apparently like Queen's songs because they start singing along when their owner is away. This is the one of the better auto ads for Super Bowl 50 that we've seen yet. A look at the truck's capabilities would be nice, but at least the commercial's premise is highly enjoyable. Plus, it's hard not to enjoy Queen. Honda's spot could be a popular one during this year's game. Innovative 2017 Honda Ridgeline Pickup Leads the Flock in New Super Bowl Commercial Feb 1, 2016 60-second commercial features music by Queen, performed by some unlikely and unforgettable co-stars Directed by Bryan Buckley, creator of more than 40 Super Bowl ads Extensive multiplatform campaign to support launch of new TV spot Consumers can enter to win a first drive of new Honda truck at "Camp Ridgeline" Honda today offered a sneak peek of the brand's commercial for Super Bowl 50 starring the highly innovative 2017 Honda Ridgeline pickup, a wily herding dog and a flock of sheep singing a classic Queen song, "Somebody to Love." Fans tuning in to Super Bowl 50 on Sunday, Feb. 7, will see the 60-second spot, "A New Truck to Love," during the third quarter, but the entertaining commercial is now available for viewing in its entirety on Honda's YouTube channel (http://honda.us/BigGameCommercial). Directed by Oscar-nominated director Bryan Buckley — dubbed "King of the Super Bowl" for his role in bringing to life more than 40 commercials for the big game — the new Honda commercial imagines how a rancher might use one of Ridgeline's available features, the industry's very first factory truck-bed audio system, enabling music to play outside the truck. This poses the question, "What if his sheep learned how to sing?" with the commercial showing the sheep being dropped off by the new Ridgeline and then performing the classic Queen hit after the rancher departs. The spot signals not only Honda's return to the Super Bowl, but the return of the all-new Ridgeline to market.