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Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

2015 Honda Fit earns 5 Stars from NHTSA

Honda's emergency redesign of the new Fit's front end not only had a positive effect on its scores from Insurance Institute for Highway Safety – it recorded a Top Safety Pick after being retested – but it helped the compact hatch record an impressive NCAP five-star safety rating from the National Highway Traffic Safety Administration. Those are two significant achievements for the Fit, and surprise, surprise, the Honda was quick to tout the news. "The Fit shows that owning a smaller car doesn't mean you need to skimp on space, comfort or crashworthiness," said Honda's VP of auto operations Art St. Cyr. "Honda's commitment to the safety of our customers and other road users is second to none, and the Fit demonstrates this commitment in a powerful way." Check out the official PR on the NHTSA announcement, available below. All-New 2015 Honda Fit Achieves Highest Overall Vehicle Score from the National Highway Traffic Safety Administration Feb 2, 2015 - TORRANCE, Calif. Subcompact Fit achieves both an NCAP 5-Star Overall Vehicle Score and an IIHS TOP SAFETY PICK rating Fit is the fifth Honda vehicle for 2015 to achieve top crash safety ratings from both from IIHS and NHTSA The spacious, fuel-efficient and versatile 2015 Honda Fit (http://automobiles.honda.com/fit/), has received a 5-Star Overall Vehicle Score, the top score available in the National Highway Traffic Safety Administration (NHTSA) New Car Assessment Program (NCAP). The Fit, completely redesigned in 2014, earns both a TOP SAFETY PICK rating from the Insurance Institute for Highway Safety (IIHS) and a NCAP 5-Star Overall Vehicle Score from NHTSA for 2015, making it even more of a standout choice in its segment. "The Fit shows that owning a smaller car doesn't mean you need to skimp on space, comfort or crashworthiness," said Art St. Cyr, vice president of auto operations at American Honda Motor Co., Inc. "Honda's commitment to the safety of our customers and other road users is second to none, and the Fit demonstrates this commitment in a powerful way." Already the benchmark subcompact in terms of passenger and cargo space and innovative features, occupant safety features for the 2015 Honda Fit are further enhanced through the next-generation Advanced Compatibility Engineering™ (ACE™) body structure. The ACE™ body structure improves frontal crash energy management through a wider range of offset and oblique collision modes.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.