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2018 Honda Accord charges into slumping sedan market

DETROIT - Honda on Friday revealed its newest-generation Accord, one of four re-engineered midsize sedans that Asian automakers are betting on to win market share as Detroit automakers shift focus to SUVs, crossovers, and pickup trucks. The new Accord, like rival Toyota's all-new Camry arriving this month, offers major improvements in fuel economy, technology, styling and safety. Honda declined to discuss details ahead of Friday's event in Detroit. The Accord and Camry are pillars of their manufacturers' US businesses, each selling well over 300,000 vehicles a year. In the coming months, Nissan is expected to launch a new Altima midsize sedan, and Hyundai will launch a new Sonata. Both are popular marques that will be promoted heavily. "There has been no new news on the midsize sedan side for three years, and we think this is a great opportunity to bring attention back to the segment," said Jack Hollis, Toyota's head of marketing for North America. Year to date, US passenger car sales are down 11.4 percent, and sales of midsize sedans are down 14.2 percent. Still, Americans bought 7.1 million sedans in 2016. With General Motors and Ford cutting sedan production, and Fiat Chrysler Automobiles abandoning the segment, Honda and its Asian rivals could boost sales with updated models, dealers said. "They could take share from other brands, which is traditionally what happens when a new product is launched," said Pete DeLongchamps, vice president for manufacturer relations at Group 1 Automotive Inc, the third-largest US auto dealer group. "NOT FINDING A PLACE WITH CONSUMERS" The Accord for years was Honda's top-selling model in the United States. Within the past year, US sales of the Honda CR-V have eclipsed the aging Accord, and Honda has expanded production capacity for the compact crossover. Passenger-car sales have steadily declined since 2012, when they made up 51.2 percent of the US market. Sedans have sagged to a 38.1 percent share in the first half of this year. IHS Markit said US consumer loyalty to SUVs and pickup trucks has risen since 2012, but declined for sedans. The new Accord and Camry "may stem the decline," said IHS Markit's Tom Libby. "I don't think they will cause a marked reverse." Improvements to the Accord should boost sales at Galpin Honda in San Fernando, California, general manager Ed Hartoonian said.

Hyundai Tucson Fuel Cell CUV deliveries running behind schedule

Things are running a little bit behind on Hyundai's hydrogen-powered Tucson Fuel Cell CUV program in the US. The last time we checked in with the South Korean automaker's H2 project, we heard that the first deliveries were supposed to happen by the end of March. Speaking with Hyundai's Kevin Lee at the Hyundai booth at the SAE World Congress this week, we learned that deliveries are now going to happen closer to a month from now. Globally, there are roughly 70-100 of these hydrogen CUVs running in customer hands today. Lee told AutoblogGreen that the first US-bound units will be shipped from South Korea at the end of April or beginning of May but there is no actual date set for the first customer delivery. He said he expects 100 or fewer H2 powered Tucson CUVs to be operating in the US by the end of this year, all of them in Southern California. He said the customers in this first batch are being selected based on the location of the nearest hydrogen fuel station. While the number of stations is small today, more are on the way. Globally, there are roughly 70-100 of these hydrogen-powered CUVs (also known as the ix35) running in customer hands today, in places like South Korea, Germany, Norway, Austria and Italy. Some H2 stations charge Hyundai a flat rate per fill while others charge the automaker a general station maintenance fee. In the US, the Tucson Fuel Cell CUV leases for $499 a month (with $2,999 down) for 36 months, and comes with unlimited hydrogen refueling as well as Hyundai's Valet Maintenance. Lee told us that one reason for the "free" hydrogen is that even the small number of public hydrogen stations out there (nine in SoCal) does not have a cohesive set of rules for how to sell H2 to the public. The stations are not yet certified to charge customers based on dollar per kilogram in California, Lee said, since that regulation has not yet been set by the Division of Measurement Standards (DMS). Currently, "each station is different," he said, with some charging Hyundai a flat rate per fill and others charging the automaker a general station maintenance fee. This situation will likely change by the end of the year, he said. Lee said Hyundai is already busy working on the next-gen fuel cell vehicles and trying to reduce costs but was not able to share any details.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs