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Honda revamps F1 engine for McLaren

Things haven't been going smoothly for Honda since returning to Formula One, and the Japanese automaker says the challenge has been greater than it anticipated. But after a stronger showing at the recent Hungarian Grand Prix, Honda says its reliability issues are behind it and is working on introducing a revamped engine for the second half of the season. "I am confident our reliability problems are now behind us, which means we can turn our attention to increasing power," Honda racing chief Yasuhisa Arai told Autosport. "After the summer shutdown our plan is to apply a new-spec engine using some of our remaining seven tokens." The "tokens" to which Arai refers are a way for the FIA to limit engine development. The power units are broken down into 66 such tokens in the regulations, and each engine supplier can change up to 32 of them throughout the season. The allowance was at first afforded only to returning suppliers Mercedes, Ferrari, and Renault, but Honda succeeded in convincing the FIA to allow it the same leeway. Honda has been spending its development tokens on fixing reliability issues, but will shift its focus to improving performance. The McLaren team that Honda powers has only gotten both of its cars to the finish line at two out of 10 races this season. Most of those problems came down to the new engine package. That's compared to only two retirements the team suffered last season, when it was still under Mercedes power, and none the year before. In Hungary, however, the team not only got both cars to the finish line, but placed both in the points for the first time this season. "The sport has changed immensely since the McLaren-Honda 'glory days'," said Arai. "The current technology is much more sophisticated, and it is tough to make a good racing car. We knew it wouldn't be easy, but perhaps we didn't imagine it would be this hard." The Japanese manufacturer is now spending the summer break developing its power unit. Many of those changes are expected to be rolled out in time for the Belgian Grand Prix later this month, with the rest to follow in the ensuing races. Beyond reliability, engine performance is particularly important for the high-speed races at Spa and Monza, where the subsequent Italian Grand Prix will be held early next month. Related Video:

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 opening first new motherland plant in almost 50 years

Despite opening dozens of overseas plants in the past several decades in locations all over the globe, Honda Motor Co. has not expanded its car manufacturing capabilities in its home market of Japan since opening a facility in Sayama back in 1964.
But all of that is set to change this July when Honda opens the doors to a new assembly plant in Yorii, about two hours north of Tokyo. According to Bloomberg, the new facility has a projected annual capacity of 250,000 vehicles. The plant is part of the automaker's reorganization efforts, plans that include scaling back its older Sayama plant and bringing Yorii online with more efficient and innovative technology. There are additional benefits, too, as the Yorii plant is expected to create 3,800 jobs, both on-site and at its suppliers, and boost the local economy as other businesses ramp up to accommodate the influx of new workers.
While the automaker has not released specifics about which models will be produced at Yorii, Honda is expected to consolidate production of models including the Fit, a best-seller in its domestic market.