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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.

Honda museum opens at company HQ in SoCal, first public day is next month

You don't see too many ordinary cars in automotive museums, and it makes sense. Rare luxury models, iconic muscle cars and obviously collectible vehicles are far more likely to get preserved and find themselves parked upon a climate-controlled pedestal someday. And yet, even if they may not be as collectible, everyday cars typically strike a stronger emotional and nostalgic chord in all of us. They firmly recall a specific time in our lives; what we were doing and where we were. Even if we never owned the car in question, ordinary cars were bound contribute to the overall landscape of your world.  Which is why finding a museum devoted to ordinary cars such a treat. Now, "ordinary" can have negative connotations, so perhaps "ubiquitous" is better to describe what you'll find in the new American Honda Collection Hall at the company's headquarters in Torrance, Calif. As you can see in the gallery above, there are pristine examples of the Hondas we grew up in, learned to drive in, brought us to college ... and those are just my own personal examples. Of course, there are also decidedly less ordinary examples such as the S2000 CR, Civic Type-R Limited Edition and Acura NSX, but apart from perhaps the latter, it would be rare for you to see such "Radwood-era" cars in a museum. You can also see some of the cars we've actually had the chance to review here on Autoblog: the 1999 Honda Prelude, the 1999 Honda Civic Si, the 1985 Honda CRX Si, and a handful of others.  According to Carl Pulley, who is the steward of the collection, the cars on display are just a taste of what is actually available since space was limited within the Collection Hall that's adjacent to HQ's primary lobby. He'll be able to swap different cars in or adopt a theme such as prominent examples from Honda's motorsports endeavors. Indeed, it isn't just Honda and Acura road cars -- we're just focusing on those because, you know, Autoblog. There are race cars, noteworthy motorcycles and even power equipment such as marine engines, generators and weed whackers.  While most car companies have a collection stored someplace, this one will actually be open to the public on a limited but regular basis. There will be scheduled "Cars, Bikes & Coffee" events hosted at the Collection Hall where people are invited to drive or ride their own piece of Honda history (all makes and eras are still welcome) to show off in Honda HQ's vast parking lot and come inside to check out the Collection Hall.

F1's Fernando Alonso gets 35-place penalty for latest Honda engine change

MONZA, Italy — McLaren's Fernando Alonso will collect a 35-place grid penalty for Sunday's Italian Grand Prix after Honda announced changes to his car's power unit. The penalty means the double world champion, whose future at McLaren remains uncertain due to the team's continuing engine woes, will start at the back of the 20-car grid for the last European race of the season. His chances were limited anyway at Monza's 'Temple of Speed,' the fastest circuit on the calendar where engine performance is crucial. His Belgian teammate Stoffel Vandoorne suffered a similar fate when he was handed a 65-place penalty for his home race at Spa-Francorchamps last weekend. Such meaningless penalties incurred through no fault of the driver have come increasingly under scrutiny in Formula One with some saying the system has got out of control and must change. "I hate the fact that we're having to affect the racing because of the technical issues," Formula One managing director Ross Brawn, a title-winning former team principal and ex-Ferrari technical director, told motorsport.com. "I know you can say if a car breaks down in a race that's a technical issue and you've affected the race, but I think the fans understand that. "For a fan to stomach that his hero is on the back of the grid because he had to change the engine, that's not great sport," added the Briton. Brawn suggested a different form of penalty, or removing it altogether, but acknowledged that the sport might have to wait until 2021 when new engine regulations will come into force. The current Formula One regulations stipulate that each driver may use no more than four power units during a championship season, with that number due to be reduced to three next year. Each power unit is made up of six separate elements; the engine, the motor generator unit-kinetic (MGU-K), the motor generator unit-heat (MGU-H), the energy store, turbocharger and control electronics. Grid penalties are imposed if a driver uses more than four of any one of the elements during the course of a season, and for successive breaches. Honda said Alonso was now on his seventh engine and MGU-K, his ninth turbocharger and MGU-H, his sixth energy store and fifth control electronics. Alonso retired from the Belgian Grand Prix but some components of the power unit used there will be run again in Friday's second practice after Honda said they could find no obvious problem.