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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.

2016 Honda Odyssey Special Edition bundles entertainment system, vacuum for $34,255

The crossover may have supplanted the minivan's popularity, but few vehicles match the capabilities provided by two big, sliding doors and a huge cabin for larger families. With that fact in mind, Honda has updated its highly popular Odyssey with a new Special Edition trim for 2016. Here's what you need to know. The Odyssey SE builds on the $33,305 EX trim by adding a rear-seat entertainment system with a 115-volt rear outlet, the HondaVAC vacuum cleaner, and satellite radio. Total cost for this family friendly tech? An agreeable $34,255, or less than $1,000. That price is extremely favorable compared to the 2015 Odyssey, where an entertainment-equipped Odyssey required the EX-L trim and retailed for $38,255, and a HondaVAC demanded the top-of-the-line Touring Elite trim and a check for $45,480. Bringing the entertainment system and HondaVAC into lower trim levels isn't going to impact the rest of the Odyssey lineup, though. The EX-L with rear-seat entertainment will still be offered, and its price has only jumped $550, while the Touring Elite's price has only jumped $150. And while it might seem like Honda is giving away the farm with the new SE, it's still worth noting that the EX-L adds a lot to the EX package, including a number of safety features, as well as heated leather seats and a power liftgate. Related Video: 2016 Honda Odyssey Poised to Clean Up and Entertain with HondaVAC™ and Rear Seat Entertainment Now Applied to New Special Edition Model High-value Special Edition includes premium features such as Rear Entertainment System, SiriusXM® Radio and HondaVAC™ to offer families even more choice of Honda's award-winning minivan Aug 3, 2015 - TORRANCE, Calif. The 2016 Honda Odyssey goes on sale August 4 with a trim lineup expanded to eight models and a starting Manufacturer's Suggested Retail Price (MSRP)1 of $29,275. Slotted between EX and EX-L trims, the MSRP for the new Special Edition (SE) is $33,375 With the acclaimed HondaVAC® and a comprehensive selection of premium features available lower in the trim lineup, along with class-leading EPA fuel-economy ratings of 19/28/22 mpg2 city/highway/combined, the 2016 Odyssey is designed to comfortably and efficiently accommodate the lifestyles of American families.

Check out Honda's sweet stop-motion 'Power of Dreams' ad

Television advertising doesn't just have to be the necessary evil that pays for the shows that you want to watch, and Honda is absolutely proving that with a new two-minute commercial titled Paper. Using stop-motion animation and a heap of illustrated cutouts, the spot showcases what the Power of Dreams motto really means. It runs through highlights like the success in racing, automotive development, Asimo, the HondaJet, and even lawnmowers. The result of all that hard work is spellbinding. The entire two-minute spot already aired during a few NFL games, and doing that was a serious investment. According to Ad Age, during the time that the ad ran the estimated cost per 30 seconds was $300,887. Honda is also prepping a minute-long version for TV, but you can enjoy the whole thing right now in the video, above. HONDA BRINGS 'THE POWER OF DREAMS' TO LIFE WITH TWO-MINUTE COMMERCIAL CREATED BY STOP-MOTION ARTIST AND INFLUENCER PES Elaborate Paper-Flipping Technique Artfully Tells the History of Honda Honda Brand Marketing Tone — Simple, Clever and Emotional — Will Carry Through Across Upcoming Advertising to Help Build a Long-Term Emotional Connection with Consumers Sep 21, 2015 - TORRANCE, Calif. -- Capitalizing on Honda's established, strong brand identity and its core belief in "The Power of Dreams," the company is launching a two-minute commercial, "Paper," during CBS Sunday NFL on Sunday, Sept. 20. After months in the making, thousands of hand-drawn and -colored illustrations from multiple artists provide the platform for an intricate paper-flipping journey to beautifully show Honda's history and range of mobility products. "The goal is for the marketing itself to become a demonstration of Honda thinking and all the people that touch our wide range of products along the way," said Tom Peyton, Assistant Vice President of Marketing for American Honda Motor Co., Inc. "This commercial stands for the courage and conviction to imagine and make dreams a reality and speaks to Honda's innovative nature and respect for personal achievement and contributions." "The Power of Dreams" philosophy speaks to Honda's belief that drives the company's R&D and diverse array of advanced-technology products, and to the determination to bring them to market. This rejuvenated approach to overall brand marketing is the sum of Honda's best thinking and could only come from the company's years of design and innovation.