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Honda scraps 2017 sales target amid concerns over quality

Honda CEO Takanobu Ito thinks that the automaker he leads needs to go back to basics to avoid continuing quality concerns. To do that, the boss is making the radical shift of entirely chucking the company's six-million vehicle annual sale targets through 2017, and there's no intention to include the goals in the next midterm plan, either, according to Bloomberg. The move comes soon after last month's announcement to set aside about $425 million to pay for recalls and slice forecasts by about 17,000 cars for the fiscal year. The complete shift from the way most automakers do business stems from the significant number of recalls from Honda last year. While the most glaring example is the Takata airbag problems affecting roughly 5.4 million of the company's vehicles in the US, that's hardly the only one. In Japan, the Fit Hybrid needed five repair campaigns in 12 months to fix various issues, and according to Bloomberg, the Vezel (similar to the HR-V in the US) has needed three. Honda also had to pay $70 million to the National Highway Traffic Safety Administration for failing to submit 1,729 safety reports to the agency. The Japanese automaker has been working on ways to right the ship for months. In the wake of the Fit recalls, top executives took a three-month, 20 percent pay cut and created an independent position to monitor vehicle quality. Previous Honda CEOs have also offered stern words to Ito. The problems haven't had quite such a dire effect in the US, though. Sales in 2014 were up one percent, and January 2015 showed a year-over-year improvement of 11.5 percent

Ford, Toyota clean up in Best Car For The Money Awards

The U.S. News Best Cars for the Money Awards picks winners by looking at the average transaction price, five-year total cost of ownership, the regard a car has from the automotive press, reliability figures from J.D. Power and Associates and safety data from the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety. The result, according to the magazine, is "the best combination of critical acclaim and long-term value."
Ford nabbed six of the 21 categories that received awards this year, the Focus, Fusion, Fusion Hybrid, Taurus, Escape and Edge getting trophies. Toyota and its Lexus and Scion sub-brands took another five, the Tacoma and Tundra owning the two categories given to pickup trucks. The other ten awards were split between Honda with three, Buick with two, and one each for Subaru, BMW, Hyundai, Chevrolet and Mazda.
Follow the link to see all the winners and read about why they were chosen.

New Honda ads: Fix your airbags

As we've heard on many different occasions, one of the biggest problem with recalls is getting people to actually report to the dealership to have repairs done. This is particularly important in cases where the recalled part can cause some very serious harm. To combat this tendency – you might even call it neglectfulness – on the part of owners, Honda is turning to advertising. The company is launching a multi-million-dollar ad campaign targeting owners of vehicles affected by the Takata airbag recall and asking them to report in to have a replacement inflator installed. "Honda hopes that this new consumer information campaign will bolster our existing and continuing efforts to reach our customers and maximize the vehicle repair completion rates associated with recalls to replace Takata airbag inflators," Honda's John Mendel said in the attached statement. "These ads are a strong call to action from our company designed to break through the clutter, grab the attention of customers driving affected vehicles, and urge that they get required repairs as soon as possible." The campaign will kick off March 16 with full-page color ads in over 120 newspapers and 30-second radio spots in 110 markets. Because it's 2015, the company will also use sponsored Facebook posts "that mention the specific vehicle owned by each identified user." Yep, here's the future. Honda's ads will largely be focused in the 11 high-humidity states and territories (Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico and the US Virgin Islands) most affected by the Takata recall. Several of the states were part of the initial National Highway Traffic Safety Administration investigation, like Florida, Hawaii, the USVI and Puerto Rico. "The goals of this campaign is to save lives and prevent injuries," Mendel added. This campaign will be worth watching, not only because they deliver an important message, but they could set a precedent for the handling of future major recalls. Check out Honda's full press release, available below. New Honda Advertising Campaign Urges Owners to Take Immediate Action to Check for Open Recalls to Replace Takata Airbag Inflators Mar 12, 2015 - TORRANCE, CA.