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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.

Performance cars overpower the Detroit Auto Show

At precisely the stroke of noon on Monday, the 2016 Acura NSX rolled on stage at the Detroit Auto Show amid plumes of smoke and dancing lights. The sounds of the powerful engine revving soared to the rafters. It was the second coming of Acura's iconic sports car, and the reveal had all of the expected trappings. Afterwards, champagne corks popped and the bubbly flowed. It was noon in Detroit, but for the green-car movement, it seemed like the clock had struck midnight. That's an exaggeration, but performance was the overwhelming theme of North America's most important show. Ford – which has helped lead the way in smaller displacement engines and early adoption of hybrid powertrains – had more than 1,500 horsepower on stage one point after it revealed the GT concept, the new F-150 Raptor and the Shelby Mustang GT350R. The NSX is technically a hybrid (it has three electric motors), but with 550-plus hp, there's no doubt this Acura was bred on the track. The theme continued throughout the show at nearly every stand. Alfa Romeo showed off the 4C Spider, which is the open-air version of a car that purports to be the spiritual successor of the high-performance 33 Stradale from 1967. On Tuesday, Cadillac is scheduled to reveal the 640-hp CTS-V with the V8 transplanted from the Corvette Z06, and the Lexus was expected to roll out its own V8-powered beast, the 467-hp GS F. For enthusiasts – especially enthusiasts with money – these are halcyon days. But make no mistake, all of this power has a purpose. Ford product chief Raj Nair said the Blue Oval uses high performance cars to develop technologies, like aerodynamics and materials, which are then shared across its lineup. "It's another proof point about how serious we are in developing innovation through performance," he said. Ford, which is rolling out at least 12 performance cars by 2020, said the sporty cars attract younger and more influential buyers to its fold, which can help burnish its image beyond adding sales volume. Toyota is taking a similar approach, senior vice president Bob Carter said, noting the Lexus RC coupe draws people into showrooms and gets them excited about the brand, even if they don't end up buying one. "They provide an aspiration and a halo that provides the attention that gets you noticed in a cluttered market," he said.

Acura NSX is this year's Pikes Peak pace car

Acura's new NSX is the official pace car for this year's Pikes Peak International Hill Climb. The hybrid supercar will go running up that hill on June 28, leading a group of 140 racers up the 14,110-foot mountain. It'll be driven by Sage Marie, Honda's senior public relations manager (and friend of Autoblog), who competed in the Pikes Peak race in 2013 and 2014. To make the most of the occasion, Acura is installing 24 cameras along the course to capture the pace car's run. But this won't just be for a cool photo gallery. Acura will use the cameras to create a 360-degree video that will be posted to the company's social media channels after the NSX completes its climb. Look for that to drop sometime on the morning of the 28th. The NSX heads up Pikes Peak at 7:40 AM Mountain time (9:40 AM Eastern). We'll have plenty more information about the Pikes Peak Hill Climb throughout the coming days. For now, check out the NSX pace car in the image gallery above, read Acura's official press blast below, and be sure to scroll through the amazing photo galleries from the practice sessions (Day 1 and Day 2) shot by our own Drew Phillips. Related Video: Next-Generation Acura NSX to Serve as Official Pace Car for the 93rd Pikes Peak International Hill Climb Pikes Peak-first 360-degree video to capture NSX run to the top TORRANCE, Calif. (June 25, 2015) – The next-generation Acura NSX supercar will serve as the official pace car in the 93rd running of the Broadmoor Pikes Peak International Hill Climb on June 28. With a custom racing-inspired livery, the twin-turbo charged NSX pace car will lead the field of 140 entrants to the top of the 14,110-foot Colorado mountain. "The Acura NSX is the ultimate performance vehicle, and a novel way to promote its capabilities is the iconic race up Pikes Peak," said Mike Accavitti, senior vice president and general manager of the Acura Division. "As the pace car, the beast that is NSX has yet to be fully let out of its cage, but fans and drivers will get a first glimpse of the unique character, performance and handling it will deliver in this one-of-a-kind racing environment." Powering the NSX through the 12.4-mile, 156-turn course is a bespoke 75-degree twin-turbo V6 engine mated to a 9-speed dual clutch transmission and three motor Sport Hybrid Super Handling All-Wheel Drive (SH-AWD) system, which delivers 'on the rails' cornering capability essential to conquering the demanding mountain course.