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2018 Honda Accord charges into slumping sedan market

DETROIT - Honda on Friday revealed its newest-generation Accord, one of four re-engineered midsize sedans that Asian automakers are betting on to win market share as Detroit automakers shift focus to SUVs, crossovers, and pickup trucks. The new Accord, like rival Toyota's all-new Camry arriving this month, offers major improvements in fuel economy, technology, styling and safety. Honda declined to discuss details ahead of Friday's event in Detroit. The Accord and Camry are pillars of their manufacturers' US businesses, each selling well over 300,000 vehicles a year. In the coming months, Nissan is expected to launch a new Altima midsize sedan, and Hyundai will launch a new Sonata. Both are popular marques that will be promoted heavily. "There has been no new news on the midsize sedan side for three years, and we think this is a great opportunity to bring attention back to the segment," said Jack Hollis, Toyota's head of marketing for North America. Year to date, US passenger car sales are down 11.4 percent, and sales of midsize sedans are down 14.2 percent. Still, Americans bought 7.1 million sedans in 2016. With General Motors and Ford cutting sedan production, and Fiat Chrysler Automobiles abandoning the segment, Honda and its Asian rivals could boost sales with updated models, dealers said. "They could take share from other brands, which is traditionally what happens when a new product is launched," said Pete DeLongchamps, vice president for manufacturer relations at Group 1 Automotive Inc, the third-largest US auto dealer group. "NOT FINDING A PLACE WITH CONSUMERS" The Accord for years was Honda's top-selling model in the United States. Within the past year, US sales of the Honda CR-V have eclipsed the aging Accord, and Honda has expanded production capacity for the compact crossover. Passenger-car sales have steadily declined since 2012, when they made up 51.2 percent of the US market. Sedans have sagged to a 38.1 percent share in the first half of this year. IHS Markit said US consumer loyalty to SUVs and pickup trucks has risen since 2012, but declined for sedans. The new Accord and Camry "may stem the decline," said IHS Markit's Tom Libby. "I don't think they will cause a marked reverse." Improvements to the Accord should boost sales at Galpin Honda in San Fernando, California, general manager Ed Hartoonian said.

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Honda asked for Takata inflator change without telling Feds

Honda and Takata could be in legal hot water after the automaker requested a design change to the supplier's airbag inflators in 2009 without notifying the government. According to internal documents obtained by Reuters, the updated parts had extra vents to reduce the force directed occupants if a rupture occurs. Automakers generally need to tell the National Highway Traffic Safety Administration about any safety-related changes to their vehicles, but Honda argues to Reuters that the disclosure wasn't necessary in this case. The company wanted the changes to the parts to "protect against the possibility of future manufacturing errors – it was not an acknowledgement of a larger design flaw in the inflators," Honda spokesperson Chris Martin told Reuters. The revised components started going into some Honda models in 2011. However, a jury might not agree with Honda's position, and a lawyer could argue the company had a responsibility to report the alterations. There's already a pending class action lawsuit against automakers and Takata for violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, and there are many more from individuals. Among those is the case of a pregnant woman in Malaysia who died from a rupturing airbag. An investigation by the Independent Testing Coalition found three factors for the inflators'' rupturing. The use of ammonium nitrate is part of the problem, but the inflator's assembly doesn't keep moisture from reaching the chemical. If a vehicle is in a high humidity area, the danger is even worse. When they combine, these issues make the explosions more likely. Takata allegedly knew about the problem as far back as 2000 but hid the failures. Emails even reportedly showed workers joking about changing the data. Related Video: