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Honda exec says US market near capacity, could hurt subprime buyers
Thu, 21 Aug 2014Is 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 teases tougher looking 2017 MDX for New York
Wed, Feb 24 2016Acura is teasing its redesigned 2017 MDX with this orange-tinged rendering ahead of the three-row SUV's reveal at the 2016 New York Auto Show on March 23. The luxury automaker promises big changes for the latest model, including "substantial design enhancements, added luxury comfort and convenience features, and advanced new powertrain technology." Unfortunately, the company doesn't offer further details about those general promises. The folks at the Acura Design Studio in Torrance, CA, have much bolder styling ready for the 2017 MDX. While these lines aren't as razor-sharp as the Acura Precision Concept from the 2016 Detroit Auto Show, this SUV subtly evokes the sedan's honed look. For example, the chiseled shapes around the hood and grille are crisp, and the front and rear fenders are highly sculpted, which gives the MDX a tough demeanor. This teaser image makes the lower fascia appear a little busy because there's so much happening down there, but we're withholding judgment until the real thing debuts. We're also curious about the additional powertrain advancements Acura promises because the automaker just updated the MDX last year with its nine-speed automatic gearbox and twin-clutch Super Handling All-Wheel Drive. The company also added expanded availability of its AcuraWatch active safety suite to the 2016 model. Related Video: Redesigned and Reengineered 2017 Acura MDX to Debut at 2016 New York International Auto Show America's best-selling three-row luxury SUV to receive substantial design changes, new features and new powertrain technology TORRANCE, Calif. (Feb. 24, 2016) – Acura will unveil the redesigned and reengineered 2017 MDX luxury SUV at the 2016 New York International Auto Show on March 23. The 2017 MDX will boast substantial design enhancements, added luxury comfort and convenience features, and advanced new powertrain technology, in concert with the Acura brand's focus on Precision Crafted Performance. "We are sharpening our focus on the Precision Crafted Performance DNA of the Acura brand and the 2017 MDX will integrate new styling elements and powertrain technology that takes us another step in that direction," said John Mendel, executive vice president of American Honda Motor Co., Inc. The Acura MDX is the best-selling three-row luxury SUV of all time and Acura's best-selling SUV, with sales topping 50,000 units in each of the past three years. The 2017 MDX was designed by the Acura Design Studio in Torrance, Calif.
Honda slowing US production due to ports dispute
Thu, Feb 19 2015The labor dispute that idled 29 ports on the West Coast last the weekend, including Los Angeles and Long Beach, CA, is about to make its effects felt on the showroom floor, according to Reuters. Honda, Toyota and Subaru have been trying to work around the labor disagreement, cutting overtime and airlifting parts to factories, but Honda says parts shortages at plants in Indiana, Ohio and Ontario, Canada, are now severe enough to impede production. The lack of transmissions and some electronic components will slow output of the Honda Accord, Civic, and CR-V – as well as unnamed Acuras. The three affected factories will rework their production schedules from Feb. 16-23. The ports have reopened this week, and US Labor Secretary Tom Perez has flown to San Francisco to mediate a new agreement between the 20,000 dockworkers represented by the International Longshore and Warehouse Union and the Pacific Maritime Association, which represents the terminals and shipping companies. Talks have been going on for almost nine months and the issues aren't settled; meanwhile, the West Coast ports that handle half the nation's maritime cargo and 70 percent of cargo from Asia are putting all kinds of industries on the ropes, and it's estimated to cost the economy $2 billion a day. Related Video: News Source: ReutersImage Credit: MARK RALSTON/AFP/Getty Images Government/Legal Plants/Manufacturing UAW/Unions Acura Honda Crossover Sedan