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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.

All Honda Accord Hybrid production moving to Japan

The Honda Accord Hybrid will no longer be made in Marysville, OH. Honda has announced that the model – as well as the Accord Plug-In – will now be made in Sayama, Japan, where both have been built since 2013. With production moving so far away from the US market, the costs for these vehicles could increase, but there's no official word on that from Honda. Angie Nucci, spokesperson for Honda North America, did not discount the idea but just told AutoblogGreen that, "We don't have details on pricing to share at this point." Sales of the green-minded Accords are down so far this year. Through the end of March, the PHEV sold just 45 units, a 35-percent drop from the 69 sold in the first three months of 2014. Things weren't as bad for the non-plug Accord Hybrid, which has sold 2,585 units so far this year compared to 2,781 last year, a seven-percent drop. A year ago, Honda said that US sales were capacity constrained. Related Video:

Honda develops breathalyzer smart key with Hitachi

Honda and Hitachi have joined forces in developing a combined breathalyzer and automobile smart key. According to Honda, the device has been designed to be tamper-proof and able to differentiate between human breath and alternative gases. It is also said to accurately measure alcohol level in three seconds, and the reading will then be displayed in the car's information panel. Ignition interlocks that integrate an alcohol detector are becoming more commonplace. For example, in Japan professional drivers are required to pass a breathalyzer test before beginning their shifts, and development for a detector-controlled ignition interlock has been launched by the National Highway Traffic Safety Administration in the US. While the images released by Honda show the device to be relatively bulky and about the size of a mobile phone, it is still a prototype under development. Honda also notes that the breath test doesn't need to be performed inside the car, but it can be done at home – reducing the temptation to get behind the wheel while under the influence of alcohol. Related Video: Image Credit: Honda Auto News Honda Safety Technology drunk driving breathalyzer hitachi smart key