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Honda finance to pay $24M for discriminatory lending practices

Honda has found itself in hot water in the United States over allegations of discriminatory lending practices. However the Japanese automaker's American subsidiaries are taking actions to not only alter its practices, but compensate the victims of such past discrimination. According to the Consumer Financial Protection Bureau, some Honda dealers were found to have offered less preferential loans to customers of African-American, Hispanic, Asian, and Pacific Islander ethnicities than they have offered to white customers, irrespective of their individual financial situations. The American Honda Finance Corporation has allowed dealers to mark up individual loans by two percent or more, depending on the length of the loan's contract, thereby opening the door for dealers to set interest rates at their discretion. And that discretion, according to the CFPB and the Department of Justice, has been applied in a discriminatory fashion, in violation of the Equal Credit Opportunity Act. Honda, for its part, refutes the allegations and maintains that its practices have not been racially or ethnically discriminatory. The company is nevertheless taking measures to address the charges. For one thing, Honda's US financial arm is reducing the amount of wiggle-room it gives its dealers to only 1.25 percent above the buy rate for short-term loans (5 years or less), and one percent for longer-term loans. It has also set up a $24-million fund to compensate victims of the alleged discrimination, coordinating with the CFPB on the dispersal of said funds. The CFPB reports that "because of Honda's responsible conduct," it is not seeking penalties to be levied against the company for the alleged discrimination. STATEMENT BY AMERICAN HONDA FINANCE CORPORATION RE: Settlement with the Department of Justice and Consumer Financial Protection Bureau Jul 14, 2015 -- American Honda Finance Corporation (AHFC) has reached an agreement with the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ) that shows our commitment to work together to be part of the solution and to establish the path forward that best supports our Honda and Acura customers and dealers with clear and convenient financing options. AHFC strongly opposes any form of discrimination, and we expect our dealers to uphold this principle as well. We firmly believe that our lending practices have been fair and transparent.

Listen, the Type R and the WRX STI don't look alike. Here's why.

So following the reveal of the new Honda Civic Type R, we've seen quite a few commenters issuing all kinds of accusations about the Type R looking like a WRX STI. And you know what? They're right. Both cars have four wheels, four-passenger doors, big wings, and scoops. In all seriousness, aside from a passing similarity because they're both flashy sport compacts, they really don't look alike. Let's start with the front and the profile. These areas are technically the most similar, since both cars feature high beltlines and have lower fascias defined by large inlets and a deep chin spoiler. And admittedly, the little kick-ups on the lower rear portion of the side windows are reminiscent of each other. But that's where the similarities end. Up front, the grille is by far the clearest indicator that the Honda is most certainly a Honda. The wide "blade" shape that spans the nose from light-to-light is unmistakably from the company that gave us VTEC. After all, just about every Honda today uses some form of that grille. The Subaru, on the other hand, has a traditional grille that is distinctly separated from the lights. It's not a bad thing, Subarus have had rather anonymous designs in the past, and we've still liked them. It's a Subaru thing. Moving to the scoops, we find more differences. For once, the Type R is more restrained, with a small, low-profile inlet far back on the hood. It will not be mistaken for the massive one on the STI, which looks like it could suck up low-flying fowl. View 58 Photos Along the side, the distinctions continue to pile up. The key here is in the fenders. While the STI has proud, pumped-up fenders compared with its distant Impreza cousin, they aren't nearly as pronounced as those on the Type R. The Honda's flares clearly show that they protrude from the standard hatchback's sheetmetal and closely follow the curve of the wheelarches. The STI's fenders proceed along the body's lines more closely and blend in more. Finally, we come to the rear, where no one should ever get these two vehicles confused. Yes, they both have enormous rear wings and diffusers, but that's it. For starters, one car is a hatchback, and the other is a traditional sedan. Not only that, but the Type R's hatch has a distinctive split rear window. I mean, based on the criteria people have used to compare the Type R with the STI, they should've actually been comparing the Honda to a Prius.

Which car companies are creating new jobs in America?

Since January, automakers have announced investments totaling $9.5 billion in U.S. plants, creating or retaining more than 12,000 jobs. Some of those companies have yet to announce just how many jobs will be created given their investments, with the location of many of those jobs still to be determined. Specifically, the 4,000-job Toyota-Mazda joint venture plant still hasn't announced its location, with numerous states jockeying for it. Hyundai has plans to invest $1 billion but has not announced a jobs number yet. And likewise Ford is investing $1.2 billion in Michigan without specifying a number of jobs. Volvo this week announced plans to add a second line to its factory under construction in South Carolina, spending another $500 million and adding 2,500 jobs to the 2,000 it was already trying to fill. Then Thursday, Daimler announced a $1 billion expansion to its facility in Tuscaloosa, Ala., to produce EV batteries and electric SUVs, a move that will add 600 jobs to its hiring this year. Above, we've created a handy pie chart showing you which companies have announced new jobs and how many there will be. Reporting by Paul Lienert in Detroit News Source: Reuters Plants/Manufacturing BMW Chrysler Ford GM Honda Hyundai Mazda Mercedes-Benz Toyota Volvo jobs