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Honda execs take 'quality-related' pay cut after Fit Hybrid's 5th recall

Generally, the best policy in life is to admit when you're wrong and just accept the consequences. However, that attitude generally seems to be a bit less common in the world of business - at least without some government or legal prodding. So, it's especially surprising to learn that top Honda executives in Japan are taking a pay cut for the next three months following the fifth recall of the Fit Hybrid (pictured above) in the last 12 months.
According to Reuters, Chief Executive Takanobu Ito is taking a 20-percent pay cut to make amends for the quality issues. Also, 12 other high-ranking executives are taking 10 percent drops in their salaries. In addition to those temporary changes, Honda is creating a new position in charge of monitoring vehicle quality.
The latest recall fixes "noise-related defects," according to Reuters, on both the hybrid and naturally aspirated versions of the Fit, both variants of the Vezel (the sibling to the future HR-V in the US) and the N-WGN. There have also been three recalls for problems with the hybrid's seven-speed dual-clutch transmission. None of them have caused reported injuries or deaths, and these issues haven't affected US models.

Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."

Florida woman says Takata airbag deployment left her paralyzed

A malfunctioning Takata airbag left a Florida woman paralyzed from the neck down following an otherwise minor car accident last year, a lawsuit filed last week alleges. Patricia Mincey says in court documents that, instead of deploying normally, the driver-side airbag in her 2001 Honda Civic deployed with such force that it injured her neck and rendered her a quadriplegic. The lawsuit accuses Takata and Honda of deliberately concealing information about the defect and taking belated action to protect Mincey and other motorists from airbags that may harm them instead of saving their lives. At least five deaths and 139 injuries have been linked to the flawed airbags in Honda vehicles. "There is a systemic failure of these companies to come clean with information they know very early on of problems," Ted Leopold, Mincey's attorney, tells Autoblog. "Instead of doing the right thing, they try to sweep the problems under the rug until there are so many deaths and injuries they're left with no choice. We saw it with General Motors ignition switches, we saw it with the Toyota unintended acceleration cases and now we see it here." Long History Of Takata-Related Recalls Four days after Mincey's accident, Honda recalled her car as part of a 5,394,000-vehicle recall that sought to repair vehicles in which the airbag inflators could rupture. Her accident took place in Jacksonville, Florida, a state in which manufacturers have said high humidity could cause a heightened risk of problems for Takata airbags. She was wearing her seat belt at the time of the crash, according to court documents, and her car was traveling approximately 22 miles per hour. Mincey remains hospitalized in a long-term care and rehabilitation facility near her Florida home, her attorney said. She is seeking compensation in excess of $15,000 for her injuries and punitive damages. Problems with the Takata airbags were discovered as early as 2001, when Isuzu issued the first recall related to high-pressure deployments. But the company continued to manufacture defective airbags, which have subsequently been flagged in dozens of recalls over the past 14 years. Approximately 21 million vehicles have been affected in the United States. Congress conducted hearings on the companies' delayed responses to the safety crisis last year.