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New Honda Fit ousts Toyota Prius as Japan's top-selling car last month

The Toyota Camry may lose its title as the best-selling car in the US next year and the Honda Civic has already managed to outsell the Toyota Corolla to become the top-selling compact in the US, but it looks like the domination woes have just hit Toyota on its own turf. Bloomberg reports that the all-new Honda Fit carries the distinction of being the best-selling car in Japan for October - the Fit's first full month on sale - outselling the popular Toyota Prius and Toyota Aqua (our Toyota Prius C).
Unlike the Camry's 16-year reign on US car sales, Japan's race seems a little tighter with the Fit most recently topping the sales charts in May 2011. Since then, though, the two Toyota hybrids have been the top two cars in for sale in Japan. The US won't get the next-gen Fit until the third quarter of 2014, but this new hatchback should be another solid option for buyers in the increasingly popular subcompact segment.

Honda China struggling with high-end Accord because Chinese covet German cars, too

It's not particularly unusual to see cheap cars in China, or those with designs stolen from foreign competitors, but increasingly the best-selling vehicles there would be very recognizable to just about any auto enthusiast. There appears to be one fact of life whether looking at car buyers in Sacramento, Stuttgart or Shanghai: People who can afford to buy premium cars often look first at the Germans.
Honda recently thought that it could challenge this perceived wisdom by including a premium Accord in the ninth-generation sedan's Chinese launch last year. The market-exclusive version was priced against the Audi A4. The venture failed, miserably.
According to Automotive News China, sales for the new Accord in China are down 37 percent through May of this year. Honda's overall sales are actually up by about 11 percent there on the strength of smaller, less profitable models. However, the company is still off its forecast 19-percent rise.

Honda underreported 1,729 claims of injuries or deaths since 2003

Among these underreported cases were eight Takata airbag inflator ruptures not submitted. Following an independent audit of its safety reporting procedures, Honda has found massive holes in its methodology and practices that resulted in 1,729 claims of injuries or deaths going unreported to federal authorities dating back to July 2003. The cases should have been submitted to the National Highway Traffic Safety Administration as part of its quarterly Early Warning Reports (EWRs) under the TREAD Act, but they fell through the cracks for a variety of reasons. Honda blames the underreporting on three factors: data entry errors, computer coding problems and "an overly narrow interpretation of what constituted a 'written notice' under the TREAD Act." The first two issues were related to the computer program that collected the claims. If employees didn't enter a date in the "written claim received" field, then they were omitted from the EWRs. Also, the company's internal component codes didn't always match those used by NHTSA, and only the ones that were the same were disclosed. Finally, third-party documents, including police reports, were not considered. Honda says the computer error is now corrected, and the company is updating its data entry training. In the future, written and oral claims will be included in EWRs, as well. Among these underreported cases were eight Takata airbag inflator ruptures not submitted in Honda's EWRs, including one death and seven injuries. However, the automaker claims NHTSA was already aware of all of these incidents either from the agency's own records or from the company's notification outside of the EWR process. Unfortunately, this problem could have been stopped much sooner. The issue was first brought to light in 2011 but didn't result in a followup. NHTSA advised the automaker of discrepancies in January 2012, and it still did nothing. This third-party audit wasn't commissioned until September 2014. "Honda acknowledges that it lacked the urgency needed to correct its problems on a timely basis," it says in the announcement. Separately, the Japanese government is starting an investigation, as well. According to Reuters, the Japanese Transport Minister has created a task force to look into the Takata recalls and find out whether Honda under-reported incidents there. Scroll down to read the company's entire statement on the third-party investigation.