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Acura organizes new business division to confront falling sedan sales

Honda and Acura North America have announced a major restructuring of operations in hopes of turning around Acura's flagging business. For 2013, sales for Acura's sedans dropped 10.4 percent, while its CUV sales grew by 21 percent. The newly formed Acura Business Planning Office will attempt to right the ship.
As part of the restructuring, Acura is promoting Erik Berkman from President of Honda R&D Americas to lead a new division called the Acura Business Planning Office. Berkman has been with Honda since 1982 and led development of the 2006 Accord. He was also the first US engineer to head North American research and development and has been head of Honda Performance Development since 2008. "Erik's appointment to the new Acura Business Planning Office is a clear indication of the high priority we place on Acura," said Honda spokesperson Jeffrey Smith to Automotive News.
American Honda Motor President and CEO Tetsuo Iwamura is also going to be working to improve the business. He has been elected chairman of American Honda's board, and has simultaneously taken the new position of Corporate Brand Officer to improve the management of the company's brands.

Honda and Acura recall 124,077 vehicles due to potential brake failure

Honda and Acura are recalling 124,077 total vehicles across numerous model lines due to a part in the brake system that was potentially improperly assembled, which could ultimately lead to brake failure. The models affected include the 2020-2021 Honda Civic, 2020-2023 Ridgeline, 2021-2023 Passport, 2021-2022 Pilot and the 2020 Acura MDX. As for the issue itself, Honda says the brake master cylinder “may have been improperly fastened to the brake booster assembly during production.” Specifically, the tie rod fastener is the problem point. Honda says that if it was improperly assembled, that could result in loose or missing tie rod nuts. If this is the case, when you hit the brakes, a bending load can be placed on the brake booster tie rod studs, which could in turn cause the tie rod studs to break. This then allows the brake master cylinder to separate from the brake booster, which Honda says could result in diminished or lost brake function. Honda says it received a report of brake failure on a 2021 Pilot last year, which prompted the companyÂ’s investigation. There are no crashes, injuries or deaths related to this issue, according to Honda, but it has received two related warranty claims since September 2022. Owner notifications are scheduled to begin on August 7 this year. Honda says it will inspect and replace any missing nuts, and if any brake booster assembly components are damaged, those will be replaced, too. Related video: Recalls Acura Honda Truck Crossover Hatchback SUV Sedan

China's auto sales continue to drop

The days of unending growth of carmakers in China look to be over, and some analysts are even forecasting a net drop in volume this year, The Detroit News reports. After falling numbers in June and July, the China Association of Automobile Manufacturers tallied total sales, including trucks and buses, in August to 1.7 million, down 3 percent from 2014. There were some tiny specs of good news in China, but there's no turnaround in sight. Total vehicle sales from January to August are actually still up but only 2.6 percent. Like the rest of the world, SUVs are booming with numbers up 45.6 percent from the previous year. Honda managed a very impressive 50.7 percent gain on the strength of the CR-V and Vezel (the HR-V here), according to The Detroit News. Also, the country's domestic automakers, which generally offer less expensive products, posted a 2.5 percent growth in sales. The news continues to look bad for Detroit's automakers, though. Volume from General Motors dropped 4.8 percent in August, and Ford fell 3 percent in August. Both of them have invested significant amounts there in the past years. The vehicle industry in China grew last year, but there was burgeoning evidence of weakness. At the end of 2014, dealers there pushed back against huge inventories pushed by automakers. Even before the big drops began in June, GM saw the writing on the wall and started cutting prices. BMW responded to the slump by cutting back production to deal with the changing demand. News Source: The Detroit NewsImage Credit: Mark Schiefelbein / AP Photo BMW Ford GM Honda Car Buying