2012 Honda Ex on 2040-cars

Auto blog

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 nav concept replaces head unit with Android phone

The desire for better in-car tech without compromising safety is what led Drivemode co-founders Yo Koga and HK Ueda to create their auto-centric Android app. It presents a clutter-free UI specifically meant for driving. The single-button, no-look interface uses display-wide swipes and taps and presents audio cues to help keep your eyes on the road -- and not the glowing rectangle you have mounted to your dash. With over 400,000 downloads, the app has gotten the attention of not just drivers, but also major automakers, including Honda. The carmaker has partnered with Drivemode to create a concept vehicle that completely replaces the head unit with a phone. It's not just shoving an Android device into the dash either; the head unit is completely integrated with the car's controls. For instance, the buttons on the wheel that usually control the radio now control the app. Additionally, the backup and right-side blindspot cameras are now displayed on the phone too. Honda and Drivemode say this is still just a concept and potentially years away from actually happening. But it's part of a larger plan to build an app for automakers; a way to offer its software replacement for the traditional in-dash system. In the meantime, though, Drivemode is looking for other ways to make a bit safer. For instance, Ueda says the app will eventually support aftermarket Bluetooth backup and blindspot cameras. So, drivers can buy the cameras and mount them to their cars, allowing them to have an additional safety feature, even if their vehicle didn't have that option when purchased new. In particular, the Drivemode team sees an opportunity in lower-end vehicles that are less likely to come pre-installed with Android Auto or Apple CarPlay. The app replicates many of the features found in those systems which tend to be found in medium to high-end cars. For drivers who can't afford the trim levels that offer those smartphone-integrating options (or are are not looking to upgrade their whip), they can still enjoy a more integrated driving experience without weaving all over the road trying to launch Spotify. Unfortunately, the app is for Android only right now, but Drivemode is looking for additional funding to build an iOS version. Related Video: This piece by Roberto Baldwin originally appeared on Engadget, the definitive guide to this connected life. Auto News Honda android android auto nav

Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."