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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

NHTSA urges owners of recalled Takata airbag vehicles to take immediate action

The National Highway Traffic Safety Administration and the Department of Transportation are taking the unusual step of issuing a followup press release urging owners of certain recalled vehicles "to act immediately" to fix their cars and trucks. The problem in question concerns the repair campaigns for rupturing Takata airbag inflators issued in June and covers a long list of models from Toyota, Lexus, Honda, Acura, Mazda, BMW, Nissan, Infiniti, Buick, Cadillac, Chevrolet, GMC, Oldsmobile and Pontiac.
While NHSTA doesn't specifically say why the recall is vital in the new release, Toyota's own explanation in its newly announced renotification campaign earlier today sheds some new light on the topic. According to the Japanese automaker, in testing, Takata found a possible link between the rupturing airbag inflators and high humidity. NHTSA is advocating that all owners pursue repairs immediately if they haven't already done so already. This is especially crucial for those drivers especially in Florida, Puerto Rico, Guam, Saipan, American Samoa, Virgin Islands and Hawaii because of the humid conditions there.
We don't need to tell you how dangerous an inadvertent airbag deployment could be - even in a stationary vehicle - but adding to the Takata issue is fears that the deployment could lead to shrapnel being sprayed into the cabin.

2014 Mazda3

The Cure For The Common Corolla
I hate the Toyota Corolla. I'm not talking about the new 2014 model; I can't yet judge a car I haven't driven. I'm referring to the current, old-as-dirt sedan. As an appliance, I get why people buy it, but it represents everything that I, as a car enthusiast, dislike. I don't like looking at it, I don't like sitting in it, and I really don't like driving it. There is absolutely no amount of emotion dialed into any part of the Corolla experience and every other vehicle in the segment is a far better choice. But still, somehow, Toyota sells 'em like hotcakes.
Thankfully, there are a lot of people who agree with me. And for folks like us, companies like Mazda exist. This small Japanese automaker places emotion and driver involvement as its top priorities when creating new products, and mostly - especially in recent years - the end results have been great. The new CX-5 crossover is a doll, to say nothing of the rakish and lovely new Mazda6 that launched earlier this year. And let's not forget the Miata...