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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.

2017 Honda Accord Hybrid comes with $300 price hike

The 2017 Honda Accord Hybrid went on sale at US dealerships today with an MSRP of $29,605, or $300 more than the 2016 model. Among other new bells and whistles, the sedan, which is available in three trims, includes features such as front and rear parking sensors, remote engine start, heated rear seats, and rain sensing wipers, not to mention the "elegantly contoured" aluminum hood. Honda Sensing driver-assist features are now part of the standard equipment package, while the EX-L version includes touchscreen interface with Apple CarPlay and Android Auto capability. Honda revealed details about the model in April, saying at the time that it had a combined fuel-economy rating of 48 miles per gallon. Honda notes that rating can't be compared to the 2016 model-year's fuel economy because of "new more stringent ratings requirements enacted by the US EPA," though has estimated that, apples to apples, the fuel-economy of the 2017 version is up about four percent. That, even though the car's horsepower is also increased about eight percent to 212. The new price tag means the Accord Hybrid will start about $1,600 higher than the Toyota Camry Hybrid. That model kept its pricing at $27,625 for the 2017 model year. Regardless, Honda is hoping to goose its hybrid sales with the updated model. Honda and its Acura division's hybrid sales through May plunged 79 percent from a year earlier to 1,975 units. Last year, Honda sold 11,063 Accord Hybrids, down 21 percent from a year earlier. By comparison, Toyota sold 30,640 Camry Hybrid's last year, marking a 22 percent drop from 2014. Meantime, take a look at Honda's press release below. Related Video: Honda Launches 2017 Accord Hybrid: America's Most Sophisticated, Powerful and Fuel Efficient Midsize Hybrid Sedan Jun 15, 2016 - TORRANCE, Calif. Next-generation two-motor hybrid powertrain with class-leading 212 horsepower and top-in-class EPA fuel economy ratings of 49/47/48 mpg1 Dynamic new styling and advanced features including standard Honda Sensing™ technology, plus available Display Audio with Apple CarPlay™ and Android Auto™ America's best-selling midsize sedan bolsters its resume for 2016 with the arrival of the restyled and reengineered 2017 Accord Hybrid, America's most powerful and fuel-efficient midsize hybrid sedan, launching today at Honda dealerships nationwide.

Honda recalling 1,400 units of 2016 Pilot to adjust seatbelts

Just as the new model starts arriving at dealers, Honda is already recalling the 2016 Pilot in order to adjust the third-row seatbelt positioning in some of them. The National Highway Traffic Safety Administration reports this campaign covers 1,358 vehicles. However, Honda asserts that only a tiny number of owners actually need to bring their crossover into their dealerships for repair. Honda discovered during quality checks at the factory that the third-row seatbelt could be trapped between the seat and the side of the vehicle. This could pose a safety issue to passengers back there. The affected examples have build dates between May 4, 2015, and June 5, 2015. Because the 2016 Pilots were just launching when this problem was discovered most of them were still at the factory, in transit, or at dealers. According to Honda, only 269 of the affected examples actually made it to owners. The automaker got in contact with these customers to reposition the seatbelt. There are still 20 left that need to be checked, and this issue isn't responsible for any reported crashes or injuries. RECALL Subject : Rear Seatbelt May Be Trapped Report Receipt Date: JUL 06, 2015 NHTSA Campaign Number: 15V424000 Component(s): SEAT BELTS Potential Number of Units Affected: 1,358 All Products Associated with this Recall Vehicle Make Model Model Year(s) HONDA PILOT 2016 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2016 Honda Pilot vehicles manufactured May 4, 2015, to June 5, 2015. Due to an assembly issue, the third row seatbelt may be trapped between the rear seat and the rear sideliner. CONSEQUENCE: If the third row seatbelt is trapped, the occupants may not be restrained properly, increasing the risk of injury. REMEDY: Honda will notify owners, and dealers will inspect and repair the rear third row seat belt, free of charge. The recall is expected to begin on August 6, 2015. Owners may contact Honda customer service at 1-310-783-2000. Honda's number for this recall is JS7. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.