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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

No S660 for US, but Honda wants sporty cars

Honda, best known lately for being a mainstream player rather than the brand that brought us the CRX Si, NSX, Integra Type-R, and S2000, apparently wants to builds sporty cars for the US again. With that in mind (or not), Honda has ruled out bringing the tiny, sporty S660 roadster across the Pacific. "I wouldn't put my chips on [the S660]," American Honda Executive Vice President John Mendel told Automotive News. At nearly 11.1 feet long, the S660 slots in between the 12.8-foot Mazda MX-5 Miata and the 8.8-foot Smart ForTwo. Yet Mendel says the tiny two-seater wouldn't work here. "When the practicalities of the market come in, and the car only so big, that might not be the best car for the US market," Mendel said. "It might be better for India or China or somewhere else." Honda is considering its options here in the US, though. As AN reports, after his takeover earlier this year, new CEO Takahiro Hachigo promised more sporting models, like the new, US-bound, 300-horsepower Civic Type R. And while it's no secret that Honda has filed patent drawings for a mid-engine model, Mendel offered little to indicate that it'd become a reality. Calling the project from Honda's Silicon Valley research and design facility a "design study," Mendel wouldn't answer AN when it asked whether this new model was successor to the S2000 or a more attainable, lower-powered NSX. He did, however, say his company was getting pressure from dealers over the lack of verve in the company's lineup. "They want anything in the sports car world," Mendel told AN. "They're going, 'Gimme a sports car.' They want a retractable hardtop; they want a high-horsepower $20,000 sports car. Because that's the nature of what they do." There you are, Honda. Your dealers want it, which means your consumers are probably are asking for it, and your CEO wants it, too. Make something happen.

Andretti Autosport switches to Honda power

The IndyCar grid was split pretty evenly this season between Honda and Chevy power. Thing is, most of the front-running teams have been running Chevrolet engines. Except for Chip Ganassi Racing, the team that fields the likes of Ryan Briscoe, Scott Fixon and Dario Franchitti - but earlier this month Chip Ganassi announced it was switching to Chevy engines too, just like most of the other pack-leading teams.
Honda insisted it didn't need a flagship team to replace Ganassi, but that's exactly what it announced this weekend with the signing of Andetti Autosport. The team run by Michael Andretti won a few IndyCar Series titles under Honda power (in 2004, 2005 and 2007), and two Indy 500 wins (in 2005 and 2007), but switched to the Bowtie two seasons ago, winning the championship last season. But the vast majority of the team's victories - 39 out of 48 race wins - have been powered by Honda, and the two outfits undoubtedly hope they'll return to the winner's circle again with their new multi-year partnership that takes effect next season.