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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.

Honda recalls 11,602 Accords for faulty front airbag modules

The Basics: While replacing the problematic Takata airbag inflators, Honda found that certain model year 2004-07 Accords – 11,602 of them – were fitted with the incorrect front passenger airbag modules. The modules installed were designed to South American specifications and do not meet US federal safety regulations. The Problem: Since the airbags do not meet federal regulations, the National Highway Traffic Safety Administration deems them unsafe. Injuries/Deaths: None reported. The fix: Dealers will inspect the airbag modules on the models in question, and where necessary, replace them with the correct US-market units. If you own one: Owners can expect to hear from the manufacturer beginning May 5 in order to arrange for their vehicles to undergo the recall service. That is, unless your Accord was already repaired under the Takata inflator recall – in which case this problem was already addressed. RECALL Subject : Incorrect Passenger Air Bag Module/FMVSS 208 Report Receipt Date: MAR 30, 2016 NHTSA Campaign Number: 16V178000 Component(s): AIR BAGS Potential Number of Units Affected: 11,602 Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2004-2007 Accord vehicles manufactured October 1, 2003, to August 17, 2007. The affected vehicles may have been assembled with an incorrect passenger frontal air bag module that does not comply with the advanced air bag requirements. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 208, "Occupant Crash Protection." CONSEQUENCE: An air bag module does not meet the advanced air bag requirements can increase the risk of injury or death in the event of a crash. REMEDY: Honda will notify owners, and dealers will inspect and replace the air bag module as necessary, free of charge. The recall is expected to begin May 5, 2016. Owners may contact Honda customer service at 1-800-999-1009. Honda's number for this recall is JZ3. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. ### Statement by American Honda Regarding Passenger Front Airbag Module Recall: 2004-2007 Honda Accord Apr 8, 2016 - TORRANCE, Calif.

Honda: We won't be able to sell ICE cars in China by 2025

China's push to clean up the country's woeful air pollution levels could mean the end of the traditional internal combustion engine there. In an interview with WardsAuto, Keiji Ohtsu, Honda's chief technology strategy officer at the company's automobile R&D center, predicts a lineup only of models with electric assistance in the country within a decade. He also discusses the Japanese automaker's green car goals worldwide. Ohtsu foresees China adopting some of the strictest fuel economy standards in the world in the coming years. "In 2025, we don't expect to be able to sell conventional internal-combustion engines [there], meaning we will be selling mostly hybrids including plug-in types," he said to WardsAuto. China's push to clean up its air comes as major cities continue to struggle with massive levels of pollution. For example, Beijing recently banned half of the cars from the road due to dire levels of smog. To fight back, the government has pushed automakers to launch more plug-ins, and the strategy has shown some success. China's BYD has already become the world's largest producer of plug-in vehicles in 2015. Even outside of China, Honda intends to become a far greener automaker in the coming years. In the near term, the company expects 20 percent of its global volume could be hybrids by 2020. According to Ohtsu, as much as 80 percent of Japanese deliveries could have some form or electrification by that time, but the US would be closer to 20 percent. However, the company sees hybrids more as a stepping stone than as the future of motoring, and the mass adoption of hydrogen is the real goal. "We think that fuel-cell vehicles will come into the mainstream in 2030, along with battery-powered electric cars. We also feel that going forward hydrogen will be the best fuel alternative," Ohtsu said to WardsAuto. Honda's experimental FCEV (pictured above) already hints at the brand's future direction.