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Auto blog

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

Honda adopts English as its official language in meetings worldwide

Japanese was clearly the language of operation while we visited Honda's global headquarters in Tokyo last week, as well as its newest factory and principal test track. Chief executive Takanobu Ito (pictured above) spoke to us through an interpreter. But according to the latest reports, the Japanese language is being phased out at Honda in favor of English.
This according to Bloomberg, which points out that tire manufacturer Bridgestone and rival automaker Nissan have implemented similar measures, as have Japanese retail giants Fast Retailing Co. and Rakuten Inc. Honda's shift from Japanese to English comes as part of a shift in focus from central decision-making to a more regional model, but while English has clearly emerged as the international language of business, it's no coincidence that it's also the dominant language here in America. Bloomberg points out that over the 12-month period that ended this past March, North America accounted for a massive 47 percent of Honda's revenues worldwide.

It turns out Takata isn't willing to expand airbag recall nationally after all

There have been "approximately 0.000006 failures per air bag deployment, which is far below the failure rate" of most recalls, Takata claims. Takata has seemingly made an about face following reports that it would expand its regional airbag recall into a nationwide repair effort, issuing a scathing, four-page letter rebutting allegations by the National Highway Traffic Safety Administration and its Office of Defects while simultaneously attacking the government's handling of the situation. The Japanese supplier claims in its letter that the "currently available, reliable information does not support a nationwide determination of a safety defect," arguing that there were "approximately 0.000006 failures per air bag deployment, which is far below the failure rate in the vast majority of the thousands of recalls," The Detroit News reports. Takata then breaks down the two specific incidents mentioned in NHTSA's original recall request letter, a 2005 Honda Accord and 2007 Ford Mustang. Referencing the two crashes, NHTSA Administrator David Friedman said last month "one incident is an anomaly, but two are a trend." The supplier, though, argues the Honda issue is already being covered by that company's soon-to-be-national recall (more on that in a moment). The company then goes on to point out that neither Takata nor NHTSA has been able to analyze the Mustang's airbag inflator, saying that such a lack of examination meant there was "no way to ascertain what actually occurred during the incident, whether any inflator ruptured, and whether any inflator rupture that may have occurred was related to the incidents that led to the current regional campaigns." Takata alleges that NHTSA has disobeyed its own statutes. Takata also took the opportunity to take a few swipes at NHTSA's behavior during the airbag scandal, saying it was "very surprised to receive" a recall request letter because the ODI had yet to even receive the company's responses to a pair of special orders. It also alleged that NHTSA was disobeying its own statute, which says only manufacturers of vehicles and replacement equipment can "decide in good faith whether their products contain a safety related defect," and that the government can only "issue an initial decision that a safety-related defect exists" to those same entities.