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Honda exec says US market near capacity, could hurt subprime buyers

Is 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.

Honda and Acura electric crossovers will be built by General Motors

General Motors will partially offset the cost of developing electric technology by manufacturing battery-powered cars for Honda and Acura, according to an unverified report. Ultium battery technology is at the center of the deal. Without citing sources, industry trade journal Automotive News wrote that Honda has agreed to enlist rival-turned-partner General Motors as one of its EV suppliers during the first half of the 2020s. The factory that currently builds Chevrolet's Blazer and Equinox in Ramos Arizpe, Mexico, will begin manufacturing a Honda crossover in 2023, meaning it likely won't arrive until the 2024 model year. On the other side of the border, the former Saturn plant in Spring Hill, Tennessee, will churn out an Acura crossover beginning in 2024, about two years after it starts making the Cadillac Lyriq. Neither model has been revealed, and Honda hasn't commented on the report. Insiders familiar with the contents of the firm's product pipeline told Automotive News that both crossovers will be about as big as the Lyriq (pictured), which will be close in size to the 190-inch long XT5. Power for the two models will come from the Ultium battery technology that General Motors is developing for over a dozen electric cars, including the GMC Hummer and a Chevrolet-badged pickup we might discover next week during CES 2021. Both EVs will be built by General Motors, and they'll be powered by General Motors-developed technology (some will even receive OnStar and the hands-free Super Cruise driver assistance system), but everything motorists see and touch will be Honda- or Acura-specific. We're not expecting that the tie-up will spawn a pair of blandly badge-engineered crossovers; stylists will likely give each one its own design identity inside and out. Honda had previously confirmed plans to build at least two electric models on General Motors bones, and it announced that its American partner would also handle manufacturing, but this is the first time executives are throwing Acura onto the stage. What remains to be seen — assuming the report is accurate — is whether the Lyriq will compete directly against its Acura-branded sister model, or if they'll be positioned in different segments. Related video: Featured Gallery Cadillac Lyriq show car Green Acura Honda Electric

'Car Wars' says Ford, Honda to pick up share, Fiat-Chrysler ambitions downplayed

Don't look for a tremendous shifts in automotive market share over the next three years because it might not be coming. That's at least according to the annual Car Wars report by John Murphy, from Bank of America Merrill Lynch Global Research.
In the report's analysis of automakers' market share from 2013 to 2017, it predicts only small changes among the major companies. Ford and Honda see the biggest positive effect with an estimated 0.5 percent increase in their shares over the next three years; to 16.2 percent and 10.3 percent respectively. On the flip side, European automakers and Nissan are expected to lose 0.2 percent each to fall to 8.3 percent and 7.8 percent each respectively. The rest of the industry is predicted to hold steady as it is now.
The biggest loser in that prediction might be Fiat-Chrysler Automobiles. The report certainly throws a wet blanket on its plan for significant gains in market share. Murphy told The Detroit News that the company's goal was "almost unattainable."