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Honda reports $1.9 billion profit in first quarter despite sales lag at home

Ford, General Motors and Chrysler have been living in a world of sunshine and buttercups after their April-through-June financials hit the newswire, and Toyota is doing pretty good as well. Honda? Not so much.
While Japan's third-largest manufacturer saw $1.9 billion in profits, the 5.1-percent jump was lower than expected thanks to a drop in its home-market sales. US sales also took a sting, as Honda hasn't been able to match the SUV and truck demand that are currently permeating the American market, despite an uptick in Accord sales.
Honda's initial forecasts targeted a take of 209.3 billion yen ($2.1 billion at today's rates), and while a $200 million shortfall is nothing to sniff at, we'd hardly take this as Honda being in trouble. And even with the dip, Honda hasn't adjusted its forecast for the fiscal year, which remains at 780 billion yen ($7.9 billion).

Honda Civic 5-Door mule spotted testing

Rather than the current split between the North American Civic and the European version, Honda is taking the popular compact model global for its new generation. We've already caught glimpses of the next coupe in patent documents, covered in camouflage, and even in concept form in New York. However, the promised five-door hatch to be assembled in the UK but available in the US has remained more of a mystery – at least until these great spy shots. There's no mistaking that this mule started life as an Acura ILX, but the luxury sedan is highly modified for this duty. At the front, look closely to see where Honda's engineers tack on extra width around the wheel arches. Of course, the big star here is the rear end. The back is completely covered in camo, but the concealment isn't good enough to hide the hump of the hatchback. The sliced-off shape is actually somewhat reminiscent of Europe's current Civic five-door. Also, note that the taillights on this test car are similar to the ones on the concept in the Big Apple. Honda promises coupe, sedan and five-door body styles, and the next-gen Civic will be powered in the US by a turbocharged 1.5-liter four-cylinder with the choice between a six-speed manual and a CVT. The first of them go on sale here this fall, although not all the variants will likely launch at the same time.

Will states start to prevent you from registering cars that have pending recalls?

The impact of 2014 – henceforth known as Year of the Recalls – will have long-ranging consequences on the auto industry. One of the biggest changes, though, might not be in the way manufacturers inform the government of pending recalls or in the way Uncle Sam punishes automakers that violate its rules, but in the ability to sell cars with pending recalls. And strangely enough, the charge is being led by an automaker. Honda Executive Vice President Rick Schostek, pictured above, argued during a meeting of the Senate Transportation Committee that the government needs to take a role in mandating that consumers have recall services performed. That could include withholding registration for vehicles with pending recalls, Bloomberg reports. Honda is just one of the automakers currently embroiled in the massive Takata airbag recall. "It's a good idea," safety advocate Clarence Ditlow said, according to Bloomberg. "California won't give you a registration if you have an emissions recall. Why not a safety recall?" "Honda is going to use any innovative tools to find customers and get these recalls done," Schostek told the Transportation Committee. The exec, aside from echoing Ditlow's viewpoint, also argued for requiring dealerships and garages to inform vehicle owners of incomplete recalls, regardless of the service provided. Schostek also made an argument that state governments could step in, as well. Whatever ends up happening, it's fair to say that between Takata and General Motors, the future of recalls for American consumers are set for significant changes. News Source: BloombergImage Credit: J. Scott Applewhite / AP Government/Legal Recalls Honda Ownership Safety