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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.

2014 Acura MDX priced from $42,290*

The fully redesigned 2014 MDX goes on sale in July, and Acura has now confirmed that its largest crossover will be priced at $42,290 (*plus $895 for destination). Unlike previous MDX models, Acura will offer the 2014 model with both front- and all-wheel drive (the automaker's fantastic Super-Handling All-Wheel Drive, at that), and this base price is for the standard, two-wheel-drive MDX model. At the base level, this new pricing represents a $990 decrease over the outgoing, AWD-only 2013 model.
Four trim levels will be offered across the range, all of which use Acura's direct-injected 3.5-liter V6 engine good for 290 horsepower and 267 pound-feet of torque, mated to a six-speed automatic transmission. Standard features include things like push-button start, Acura's fancy new Jewel Eye LED headlights, the next-generation AcuraLink system, an eight-inch multi-function display screen, blind spot monitoring and a premium sound system.
Moving up from there, the Technology package ($46,565) gains 19-inch wheels (18s are standard), forward collision warning, lane departure warning, a color TFT display, rain-sensing wipers and more. The Entertainment Package (bundled into one $48,565 model) adds rear seat entertainment to all of that. At the top end, the MDX Advance model gets unique wheels, remote engine start, 12-speaker ELS premium audio, adaptive cruise control and more. Adding Super-Handling All-Wheel Drive to any of these models results in a $2,000 price jump.

Honda finds new Green Path to reduce CO2 emissions

In the wake of the Volkswagen diesel scandal, it's impossible to hear an automaker talk about its overall environmental efforts and not think to yourself, "for real?" Still, we're willing to listen. And Honda representatives gave it their best shot yesterday in Marysville, OH as they introduced a small group of journalist to the company's expanded initiative aimed at cutting CO2 emissions and the total life-cycle environmental impact of Honda products. Called Green Path, the initiative now includes a $210-million expansion at Honda's Marysville, OH manufacturing plant to install a better, cleaner paint shop. Speaking at the facility yesterday, Honda representatives said that the plant room is not only better for the environment (it uses limestone dust instead of water to capture paint particles, for example, reducing water usage by about 2 million gallons annually. Overall, the new paint shop will have 60 percent less VOC emissions and reduce CO2 emissions by 18 percent), it also makes the cars look better. That's whey the two-step temperature curing process will initially only be used on Acuras to differentiate them from the competition. Honda will fire up trials in late 2017. There's more to Green Path than the new paint show, of course. The company wants to reduce - in some cases eliminate - what it calls substances of concern (SOCs), things like lead and mercury. There are also new wind turbines in Ohio to supply power to Honda plants, the Environmental Leadership Program for independent dealerships to make their own green moves, and swapping out fluorescent light bulbs for LEDs, among other efforts. In the Marysville Auto Plant, for example, the Assembly department has over 10,000 task light bulbs. The fluorescent ones used to need to be replaced every three years, but the new LEDs have a life span of 16 years. Honda says that calculating up the impact of all of these little changes will remove an average of 3.822 kilograms of CO2 from the production tally of each car it makes. The company's stated goal is to reduce its total greenhouse gas emissions by 50 percent (compared to 2000 levels) by 2050. You can find out more in Honda's press release and video, below. Honda Announces New "Green Path" Initiative to Reduce Total Life-Cycle Environmental Impact MARYSVILLE, Ohio (Sept.