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Honda shifts CR-V production to Canada as UK focuses on Civic

Honda is reshuffling its global production in a somewhat bizarre way. Under the newly announced plans, the European version of the CR-V will no longer be assembled locally, but the region will become the hub for some Civic production. As part of this new strategy, Honda's Canadian manufacturing operations will become responsible for building the next-gen version of the European CR-V. Once assembled, the popular crossovers will then be exported back across the Atlantic. The investment to make these changes comes from 875 million Canadian dollars ($690 million) already allocated by Honda for expansion there. The current European CR-V (pictured above) is made in Swindon, England, and with that model moving to Canada, the site fulfills the second part of this production shuffle. Honda will invest 200 million pounds ($300 million) there to make the location a global production hub specifically for the next-gen Civic five-door hatchback. The examples made in the UK will be not just for Europe but also will be "exported to key global markets," according to the automaker. Honda now confirms one of those markets to be the US, and a recent rumor suggests the company sending over around 40,000 of them a year. Related Video: HONDA OF CANADA MFG. EXPANDS EXPORT DESTINATIONS WITH EUROPEAN SPEC CR-V ALLISTON, ON (March 30, 2015) – Honda of Canada Mfg. (HCM), a division of Honda Canada Inc., announced today that it will produce the next generation CR-V model for the European market. This will be the first time that HCM will export vehicles to Europe. Today's news follows Honda's recent announcement that it will invest $857M in its Canadian facilities, as it prepares for production as the global lead plant for the next generation Honda Civic, Canada's best-selling passenger car for the past 17 years. "Honda is thrilled to once again have good news for automotive manufacturing in Canada by broadening our production portfolio to include exports to the European market," said Jerry Chenkin, President and CEO of Honda Canada Inc. "This expansion decision was made possible due to our deep, mature, and rich talent pool with nearly 30 years of automotive manufacturing experience. We are so proud that our Canadian associates have the reputation of producing high quality vehicles that will meet the needs of the discerning European customer." The announcement further solidifies Honda's already deep roots and commitment to Canada.

November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

Honda recalling small number of Accord, CR-V models

This latest recall may not be a very big one, but it does strike us as an important one. Issued by Honda, the recall affects the 2014-15 Accord (specifically those equipped with the four-cylinder engine) and the 2015 CR-V, but only 137 of them. Those 137 vehicles, however, will need to have their short blocks replaced. What is a short block, you ask? Nope, it's not a chopped-down version of a big block: it's the engine block itself plus all its internal components, but short of any appendages that make it run. (That'd be a long block.) The problem, according to the manufacturer's statement below, stems from bolts – specifically the connecting rod bolt – that may have been improperly torqued during assembly. There's a system that's supposed to check that, but Honda reports that it "may not have identified improperly torqued bolts in a specific group of engines." Hence the recall. Owners of those few vehicles affected can expect to hear from the manufacturer to arrange bringing their vehicle into their local dealership to have the engine replaced, free of charge. Statement by American Honda Regarding Connecting Rod Bolt Recall: 2014-2015 Honda Accord 4-cylinder; 2015 Honda CR-V Mar 9, 2015 - TORRANCE, Calif. - 137 model-year 2014-15 Accord 4-cylinder and 2015 CR-V vehicles affected in the U.S. - Engine short block will be replaced in affected vehicles, free of charge - No related crashes or injuries have been reported Honda will voluntarily recall 137 model-year 2014-2015 Accord 4-cylinder and 2015 CR-V vehicles in the United States to replace the engine short block, free of charge. During engine assembly, an automated system that verifies engine connecting rod bolt torque may not have identified improperly torqued bolts in a specific group of engines. An improperly torqued connecting rod bolt could come loose, leading to potential engine damage and stalling, which could contribute to a crash. No crashes or injuries have been reported related to this issue, which was discovered through a warranty claim review process. Honda is announcing this recall to encourage all owners of affected vehicles to take them to an authorized dealer as soon as they receive notification of this recall from Honda. Mailed notification to customers will begin in late-March. In addition, owners of these vehicles can determine if their vehicles require repair by going to www.recalls.honda.com or by calling (800) 999-1009, and selecting option 4.