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Honda profit targets tumble in wake of Takata scandal

Takata's massive airbag inflator recall will likely do some damage to Honda's bottom line this year, according to the Japanese automaker's latest forecasts. The company will allocate 50 billion yen ($425 million) to fulfill costs related to the safety campaigns, Reuters indicates. The decision will reduce estimated operating profit by about 6.5 percent to 720 billion yen ($6.1 billion US) for the fiscal year ending March 31. In addition to lower profits, Honda also cut back its sales estimate for the year to 4.45 million vehicles from the previous 4.62 million, according to Reuters. This was largely due to lower-than-expected demand in Japan. "We are not seeing a big impact on sales in North America from the airbag issue," company vice president Tetsuo Iwamura (pictured above) told Reuters. The decreased forecasts come at the same time as the possibility of another death in a Honda vehicle from the Takata parts. According to Automotive News, a man in Florida died in a crash in his 2002 Accord, but investigators have not yet determined whether the inflator was the cause. However, the vehicle was included in a 2011 recall for the part and was not repaired. The family intends to file a lawsuit alleging the inflator ruptured, spraying metal shrapnel into the driver's neck. Reportedly, the owner was never notified of the recall. While the Takata inflator recall is affecting many companies with alleged links to at least five deaths and 139 injuries worldwide, Honda has it among the worst. Including vehicles covered under the previous regional repair campaign for the issue, the automaker needs to repair roughly 5.4 million vehicles just in the US. Honda has taken action by employing suppliers other than Takata to supply some of its replacement parts for the recall. The business is also reportedly switching airbag suppliers for the next-gen Accord and possibly the 2016 CR-V and Odyssey.

Junkyard Gem: 1992 Acura Vigor

Honda was the first of the Japanese car manufacturers to bring a separate luxury brand to the United States, with the (Civic-derived) Integra and (Rover-related) Legend appearing as 1986 models. By the early 1990s, Infiniti and Lexus had muscled in with their own gadget-laden luxury machines, with even Mitsubishi and Mazda offering legitimate competition for the two Acura models. Something had to be done, in the viewpoint of Soichiro Honda, and so the NSX sports car was introduced as a 1991 model, followed by the Vigor luxury sedan the following year. Here's one of those rare first-year Vigors, found in a Denver self-service boneyard recently. The idea behind the Vigor (which, like the Integra, Legend and NSX, was badged as a Honda in its homeland) was that it would squeeze in between the Integra and the Legend and steal some sales from the Lexus ES 250 as well as European machinery. The Vigor was a front-wheel-drive car, but its engine was mounted longitudinally and angled to clear the hood. The differential sat directly beneath the engine and received power via a tortured maze of shafts. The reason for all this powertrain complexity was the fact that the Vigor's engine was a SOHC straight-five that wouldn't fit the engine compartment using Honda's usual transverse mounting (though both Daewoo and Volvo managed the feat with straight-six engines later on). The U.S.-market Vigor's 2.5-liter five-banger was rated at 176 horsepower and 170 pound-feet. The base transmission was a five-speed manual, but this car has the optional $750 four-speed automatic ($1,696 in 2024 dollars). This car is the cheaper Vigor LS model, so its MSRP was $24,999 ($56,539 after inflation). You could get a slightly smaller but still feature-laden '92 Honda Accord EX for just $20,175 ($45,629 now), though, and the cushier (though less nimble) Lexus ES 250 started at just $21,300 ($48,173 in today's money). American car shoppers just couldn't figure out the Vigor, and sales were weak. 1994 was the final year for the Vigor, and the TL replaced it beginning as a 1996 model. This one drove just over 160,000 miles during its life. Don't think of it as a drive to work. Think of it as a 30-minute vacation. If you get a German luxury sedan instead of a Vigor, you'll be sorry! I miss you… S. As was nearly always the case during the 1980s and 1990s, the JDM commercials were more fun.

Honda ready for 'late 2016' arrival of Clarity Fuel Cell in US

Two years ago at the LA Auto Show, Honda showed off the first concept for what we now know is the Clarity fuel cell vehicle. At the time, Honda said it would arrive at some point in 2015. Since then, Honda has said simply that the Clarity would arrive some time after the March 2016 on-sale date in Japan and even gave itself an out in case the debut slipped to the first half of 2017. Yesterday, at a preview event at the Honda Advanced Design Studio in downtown LA, Honda narrowed that down a bit more to, "late 2016." Honda representatives said this was all still in line with internal targets for the US launch of the car. They already know when the car will arrive here, but are not yet able to say, since things like crash tests and other homologation issues could still change the timeline. The company is happy to see the expansion in the number of hydrogen refueling stations in California and is working a number of dealers in the Los Angeles and San Francisco Bay Area to get them ready to sell the Clarity. Everything that has happened since the company officially set its internal fuel cell clock has been going to plan, Honda representatives told AutoblogGreen. Hydrogen fuel cell vehicles from Hyundai and Toyota are available now, while those from other automakers (like BMW and Nissan) may arrive in or after 2020. Honda still won't confirm, on the record, that an all-electric model will be the third vehicle to use the platform that the Clarity and the upcoming plug-in hybrid (due in 2018) use, as we suspect. But, during a casual discussion about Honda happenings, I heard one executive say that he's busy working on the follow-up "products" that will use the platform, so this remains something to keep in mind. We recently got the chance to drive the Clarity in Japan, which you can read about here.