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Honda scraps 2017 sales target amid concerns over quality

Honda CEO Takanobu Ito thinks that the automaker he leads needs to go back to basics to avoid continuing quality concerns. To do that, the boss is making the radical shift of entirely chucking the company's six-million vehicle annual sale targets through 2017, and there's no intention to include the goals in the next midterm plan, either, according to Bloomberg. The move comes soon after last month's announcement to set aside about $425 million to pay for recalls and slice forecasts by about 17,000 cars for the fiscal year. The complete shift from the way most automakers do business stems from the significant number of recalls from Honda last year. While the most glaring example is the Takata airbag problems affecting roughly 5.4 million of the company's vehicles in the US, that's hardly the only one. In Japan, the Fit Hybrid needed five repair campaigns in 12 months to fix various issues, and according to Bloomberg, the Vezel (similar to the HR-V in the US) has needed three. Honda also had to pay $70 million to the National Highway Traffic Safety Administration for failing to submit 1,729 safety reports to the agency. The Japanese automaker has been working on ways to right the ship for months. In the wake of the Fit recalls, top executives took a three-month, 20 percent pay cut and created an independent position to monitor vehicle quality. Previous Honda CEOs have also offered stern words to Ito. The problems haven't had quite such a dire effect in the US, though. Sales in 2014 were up one percent, and January 2015 showed a year-over-year improvement of 11.5 percent

Honda trademarks ZSX, could be for baby NSX

While there have been many rumors dating back to 2008 about a mid-engined sports car from Honda, last year's report was provided the most detail about what seemed to be a scaled-down version of the NSX hybrid supercar. Honda may have added some fuel to the rumor-fire by recently filing a trademark application for "ZSX," reports Australia's Performance Drive. The trademark application was sent to the European Union Intellectual Property Office late last month and is obviously close to the NSX nomenclature. The Australian outlet also reports that an unnamed source within Honda claims the ZSX, whatever it may be, could be revealed as early as next year. The anonymous employee also claims that the ZSX will be offered as a coupe and a hard-top convertible variant, with both being powered by the automaker's 2.0-liter turbocharged four-cylinder engine from the Honda Civic Type R. Just like the NSX, the ZSX is rumored to get electric motors on the front and rear axles. Previous reports match the unnamed source's claims, as the ZSX was expected to be a replacement for the Honda S2000 that ended production in 2009. It now sounds like it'll be more of a mini-NSX, with rumors pointing towards one electric motor powering the rear wheels, while two motors would be on the front axle. Patents from last year, which are pictured above, match the rumors of a mid-engined sports car. The ZSX trademark is for Europe only as of right now, while the automaker's previous patents and trademarks included the US, as well. Only time will tell if "ZSX" really stands for a sports car, or if Honda actually goes through with its plans. Remember, Nissan ditched similar plans for a small rear-wheel-drive sports car recently. Related Video: Featured Gallery Honda ZSX Patent News Source: EUIPO, Performance DriveImage Credit: autovisie Green Acura Honda Coupe Hybrid Performance trademark rumor honda nsx

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico