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Weekly Recap: Kia leads Korea's quality surge

The rapid rise of Korea's auto brands in the US market has been apparent on the sales charts for several years, and now it's showing up in an area that's just as crucial: quality. Kia and Hyundai earned the highest rankings among mainstream brands in the J. D. Power Initial Quality Study released on Wednesday. The study tracks problems owners report during the first 90 days they own their car. Kia reported 86 problems per 100 vehicles, or fewer than one problem per car sold, to take second in the rankings behind luxury sportscar-maker Porsche (80). Kia's score improved by nearly 20 percent compared with the 2014 study. "The big industry story is Kia," Renee Stephens, vice president of U.S. automotive quality at J.D. Power, said in a video statement, noting Kia's infotainment systems were the key reason for its improved performance. Hyundai was fourth for the second straight year, though its score actually worsened by one, to 95. Even with Hyundai's slight dip, Korean quality increased 11 percent, according to the study, which far outpaced American and European companies' three-percent increases. Japanese brands improved one percent. Hyundai Motor Co. (parent company of the Hyundai and Kia brands) captured four individual vehicle awards, which tied for the most with General Motors, Nissan, and Volkswagen. "The Korean brands have really taken off," Stephens said. "There's movement in the industry, and the patterns are shifting." Another luxury brand, Jaguar (93 problems), slotted in between Hyundai and Kia in third place. Infiniti was fifth, followed by BMW. Chevrolet was the highest domestic brand, taking seventh place, followed by Lincoln, Lexus, and Toyota, which were all well above the industry average of 112 problems per 100 vehicles. OTHER NEWS & NOTES Kirk Kerkorian dead at 98 Kirk Kerkorian, a billionaire activist investor who wielded enormous influence on the Detroit Three car companies in the 1990s and 2000s, died Monday. He was 98 years old. Kerkorian made headlines in 1995 for trying to take over Chrysler – with the help of former chairman Lee Iacocca – before being fended off by Chrysler management. His takeover attempt ultimately pushed Chrysler to be sold to German giant Daimler. He tried to buy Chrysler again in 2007 when Daimler put Chrysler on the market, but Kerkorian fell short and the automaker was sold to private equity firm Cerberus.

2015 Honda Fit production gets underway in Mexico

After two years of construction, Honda's new factory in Celaya, Mexico, has officially begun production of the all-new 2015 Fit in North America. Mexican President Enrique Pena Nieto and Honda President and CEO Takanobu Ito both attended the opening and watched the first Fit roll off the line at the $800-million plant. Later this year, Honda will add production of its new Vezel small crossover to the new facility, though the latter is expected to be marketed in North America under a new name.
The Celaya factory will specialize in building subcompact cars by employing cutting-edge tech to use less material and less energy during production. Honda is still constructing a $470-million transmission plant on the campus to build continuously variable transmissions in the second half of 2015. When it's finished, it is expected to have an annual capacity of 200,000 vehicles and employ 3,200 people.
With the facility's completion, Honda now has a 1.92-million unit annual production capacity in North America, and it claims that when Celaya reaches full production, 95-percent of vehicles sold in the US will be built in North America. The new Fit has already proven quite popular in Japan, and now we will have to wait and see if North American buyers embrace it as well. The first new Fit customer cars will hit the roads later this spring, and as Honda spokesman Steve Kinkade tells Autoblog, all Fit models sold in North American will be built at the plant. Scroll down to read the full press release about the Fit and its new Mexican home.

A look inside Honda’s “Safety For Everyone” research and development operation

RAYMOND, Ohio—As part of its long-running “Safety for Everyone” campaign, Honda has established the audacious goal of what it calls a “zero-collision society.” But rather than making big claims about developing a fully-autonomous vehicle, which Honda hasnÂ’t done, the company is trying to chip away at the more than 37,000 vehicle-related fatalities that occurred in the U.S. in 2017 with a multi-pronged approach. Here in central Ohio, engineers are working with state-of-the-art facilities and equipment to boost active safety systems like its HondaSensing suite of safety technology with old fashioned passive systems like structural steel frames or new airbag designs that protect passengers in a crash. Honda provided members of the press with a rare tour inside its Honda R&D Americas headquarters this week. Honda officials say that increasingly, safety — and specifically, third-party ratings from the likes of the National Highway Safety Traffic Administration and the Insurance Institute for Highway Safety — figure into the top three factors consumers weigh when purchasing a vehicle. Honda and Acura have 10, 2019 models that have earned IIHSÂ’s Top Safety Pick or Top Safety Pick+ ratings, and all 15, 2019 model-year Honda and Acura vehicles that have undergone NHTSA crash testing have earned a 5-star overall rating. And Honda prides itself on its growing list of safety firsts, including the first upward-deploying front passenger airbag, in 1990 in the Acura Legend; first omni-directional crash-test facility, in 2000; and the first autonomous braking system, in the 2006 Acura RL. It hopes its new three-chamber airbag goes industry-wide and joins that list. “ItÂ’s part of our companyÂ’s culture,” said Art St. Cyr, business head unit and vice president of auto operations for American Honda Motor Co. “We have a philosophy at Honda that we want to be a company that society wants to exist. That means we have to protect our customers. ThatÂ’s part of the whole mantra of doing this.” Opened in 1984, the 1.6 million square-foot Honda R&D Americas facility, located in the countryside about 45 miles northwest of Columbus, employs around 1,600 people and is HondaÂ’s largest research-and-development facility outside of Japan. Its Advanced Safety Research facility opened in 2003.