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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.

Honda is first Japanese carmaker to be a net-exporter from US

Over the last decade or so, many foreign automakers have challenged the idea of what defines an "American car," but Honda took things a step further last year by exporting more cars out of the US than it imported in. Reuters is reporting that in 2013, a total of 108,705 Honda and Acura models were exported from the US with only 88,357 being shipped in. This gives Honda a net exporter status here, and makes it the first of such among the major Japanese automakers.
Honda's US imports have been dropping over the last five years while its exports have been steadily increasing. In 2008, the report indicates that Honda shipped 187,000 vehicles to the US and exported only 20,000, and even by 2012 Honda still favored imports with 136,000 imports and 74,000 exports. The article says that US-made Honda and Acura vehicles were exported to 50 countries with most ending up in Mexico, but the big news is that the Honda's US production set a record in 2013 with 1.3 million units built.

Acura recalls 106K MDX models for AC system bolt

The National Highway Traffic Safety Administration is announcing a recall covering the air conditioning system on 106,439 units of the 2014-2015 Acura MDX. The affected examples have production dates between April 23, 2013, and December 16, 2014. While the problem doesn't create a major safety concern, it could be very annoying when driving during the intense heat of the summer months. On these luxury crossovers, the bolts on the air conditioning compressor clutch drive might not have the proper anti-corrosion coating. This makes it more likely for them to eventually break, and if that happens the AC pulley could fall off the CUVs. Acura reports no injuries or crashes form the issue, and the company discovered the issue through warranty claims for the air conditioning not working. To repair the problem, dealers will replace the bolts. They'll also inspect the AC clutch plate and will replace it if necessary, as well. The repairs for some owners should already be in progress, according to NHTSA. Related Video: RECALL Subject : A/C Compressor Clutch Drive Bolts may Corrode Report Receipt Date: JUL 01, 2015 NHTSA Campaign Number: 15V417000 Component(s): EQUIPMENT Potential Number of Units Affected: 106,439 All Products Associated with this Recall Vehicle Make Model Model Year(s) ACURA MDX 2014-2015 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2014-2015 Acura MDX and MDX AWD vehicles manufactured April 23,2013, to December 16, 2014. The affected vehicles have air conditioning compressor clutch drive bolts that may not have received the proper anti-corrosion coating. CONSEQUENCE: If a bolt was not coated, it may corrode and break as a result. If the bolt breaks, the compressor clutch plate may separate from the vehicle, possibly becoming a road hazard. REMEDY: Honda will notify owners, and dealers will replace the air conditioning compressor clutch drive bolt and install a new clutch plate if necessary, free of charge. The recall is expected to begin July 31, 2015. Owners may contact Acura client relations at 1-800-382-2238. Honda's number for this recall is JQ7. 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. Statement by Acura Regarding Air Conditioner Clutch Drive Bolt Recall: 2014-2015 Acura MDX Jun 25, 2015 - TORRANCE, Calif.