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Honda exec says US market near capacity, could hurt subprime buyers

Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
According to Automotive News, Mendel believes that finding more customers in the market could require pursuing subprime buyers and offering longer-term loans. However, he refuses to use those tactics. While selling models this way can improve things briefly, the strategies hurt resale prices and lower vehicle profits over time. The company won't do "stupid things in the short-term that damage the person who bought yesterday," he said to Automotive News. "It's a very, very short-term tactic especially in the subprime area."
American Honda, which combines the Acura and Honda brands, has seen market share decline from 9.7 percent to 9.1 percent through July 2014, according to Automotive News, and Autoblog's By the Numbers stats showed it posted falling sales in five of the seven months with data this year. Though, Mendel claims that was partially because the company focused on retail sales over fleets. The delays of the launches for the Honda Fit and Acura TLX likely didn't help either.

Acura recalling 19.5K cars over automatic braking problem

Acura is recalling 19,502 vehicles to fix a software issue with their Collision Mitigation Braking System on the 2014-2015 MDX and RLX, plus the 2014 RLX Sport Hybrid. According to the National Highway Traffic Safety Administration the technology can falsely interpret things like metal fences and guardrails along the side of the road as obstacles and unexpectedly apply "emergency braking force." Obviously, that would be rather disconcerting while driving. Number of Auto Recalls by Model Year | AxleGeeks According to the detailed documents from NHTSA, the first account of this happening came from Japan in November 2013, and that vehicle was rear-ended when the system suddenly braked. Another incident was identified there in June 2014. However, there have been no reports of this happening in the US. The fix is quite simple, though and just requires a software update for the system. Affected owners will be notified by mail, and the repair will be done at no charge. Related Video: RECALL Subject : Activation of Collision Mitigation Braking System Report Receipt Date: MAY 20, 2015 NHTSA Campaign Number: 15V301000 Component(s): FORWARD COLLISION AVOIDANCE Potential Number of Units Affected: 19,502 All Products Associated with this Recall Vehicle Make Model Model Year(s) ACURA MDX 2014-2015 ACURA RLX 2014-2015 ACURA RLX HYBRID 2014 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2014-2015 Acura MDX 2WD and AWD, RLX and 2014 Acura RLX Hybrid vehicles. In certain driving conditions, the Collision Mitigation Braking System (CMBS) may incorrectly interpret certain roadside objects such as metal fences or metal guardrails as obstacles and unexpectedly apply the brakes. CONSEQUENCE: If the CMBS unexpectedly applies emergency braking force while driving, there is an increased risk of a crash. REMEDY: Honda will notify owners, and dealers will update the CMBS software, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Acura customer service at 1-800-382-2238. Honda's numbers for this recall is JQ4, JQ5 and JQ6. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Honda signs on as Pikes Peak sponsor, race participant

Honda plans to storm the Pikes Peak International Hill Climb on June 30, entering ten cars in nine classes at the race to the sky, and signing on as a corporate sponsor. Part of the company's return to grassroots racing - if that's what you can call factory-backed efforts - the banners of Honda R&D and Honda North America will fly on these entries: a first-gen Acura NSX, an Acura TL SH-AWD, Honda CR-Z, Honda Fit EV, one CRF450R and two CRF250R motorcycles, a CBR1000RR motorcycle and a TRX450 ATV.
One more entry, details of which are to be announced later, will be driven by IndyCar pilot Simon Pagenaud of Schmidt Hamilton HP Motorsports. LoveFab (pictured above during practice last year) will be there with its new, NSX-based Enviate, but as a privateer entry.
Honda's been to the mountain before, with high-powered gear in 2012 and record-setting EVs in 1994 and 1999, but it's never made noise like this. Have a read of the press release below for more info.