2014 Honda Cr-v Ex-l on 2040-cars

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Honda finance to pay $24M for discriminatory lending practices

Honda has found itself in hot water in the United States over allegations of discriminatory lending practices. However the Japanese automaker's American subsidiaries are taking actions to not only alter its practices, but compensate the victims of such past discrimination. According to the Consumer Financial Protection Bureau, some Honda dealers were found to have offered less preferential loans to customers of African-American, Hispanic, Asian, and Pacific Islander ethnicities than they have offered to white customers, irrespective of their individual financial situations. The American Honda Finance Corporation has allowed dealers to mark up individual loans by two percent or more, depending on the length of the loan's contract, thereby opening the door for dealers to set interest rates at their discretion. And that discretion, according to the CFPB and the Department of Justice, has been applied in a discriminatory fashion, in violation of the Equal Credit Opportunity Act. Honda, for its part, refutes the allegations and maintains that its practices have not been racially or ethnically discriminatory. The company is nevertheless taking measures to address the charges. For one thing, Honda's US financial arm is reducing the amount of wiggle-room it gives its dealers to only 1.25 percent above the buy rate for short-term loans (5 years or less), and one percent for longer-term loans. It has also set up a $24-million fund to compensate victims of the alleged discrimination, coordinating with the CFPB on the dispersal of said funds. The CFPB reports that "because of Honda's responsible conduct," it is not seeking penalties to be levied against the company for the alleged discrimination. STATEMENT BY AMERICAN HONDA FINANCE CORPORATION RE: Settlement with the Department of Justice and Consumer Financial Protection Bureau Jul 14, 2015 -- American Honda Finance Corporation (AHFC) has reached an agreement with the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) that shows our commitment to work together to be part of the solution and to establish the path forward that best supports our Honda and Acura customers and dealers with clear and convenient financing options. AHFC strongly opposes any form of discrimination, and we expect our dealers to uphold this principle as well. We firmly believe that our lending practices have been fair and transparent.

Honda safety campaign hunting for faulty Takata airbags in junkyards

Honda has been working for months to recall about 5.5 million vehicles to replace their faulty Takata airbag inflators. With many of these models dating back over a decade, some of them aren't on the road anymore; instead they're sitting in salvage yards across the country as a possible source for inexpensive, recycled parts. There's a serious risk for injuries and fatalities if these bad components end up in cars still on the road, and the automaker is on the hunt to track the dangerous parts down. According to Automotive News, Honda thinks there could be over 24,000 recalled Takata airbags in the company's vehicles in junkyards in the US. The automaker has been working with an outside business to find them and issued notices to salvage lots around the country about an offer to buy the parts back. So far, it has tracked down around 3,900 inflators. Bizarrely, Honda is facing pushback on this safety campaign from the Automotive Recyclers Association. "The buyback program appears to be offering recyclers a price for airbags materially lower than the fair parts value," organization CEO Michael Wilson said to Automotive News. Although, under federal law it's illegal to sell faulty components to people. The trade group also has a pending lawsuit against the automaker for alleged lost value in buying vehicles with Takata inflators. In addition to getting the word out to auto recyclers, Honda had a nationwide advertising campaign for people to get their cars fixed. However, the company and Takata are facing many lawsuits for injuries and deaths related to the faulty inflators.

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.