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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 delays JDM Legend over quality concerns

Honda has been having some quality issues lately, to say the least. Most of those have revolved around the airbags supplied by Takata, but not exclusively. The new Fit Hybrid, for example, has been subject to five consecutive recalls in the year since it launched. And now the Japanese automaker is reportedly delaying the launch of its new Legend sedan. The Legend, for those unfamiliar, is what Honda calls the Acura RLX in the Japanese Domestic Market – a model that has been subject to a handful of recalls in the United States, affecting components ranging from headlights to seatbelts to suspension bolts. Such quality control issues have prompted Honda to delay the introduction of its flagship sedan in its home market, pushing its arrival in Japanese showrooms back from the fall (when the model was revealed) initially to January 22 and now to February 20, according to the report from Bloomberg. The extra time is earmarked the give Honda engineers the opportunity to look into potential problems with the vehicle's radar safety system and its advanced hybrid powertrain, before introducing it to the local market. Hopefully further recalls can be avoided once deliveries have commenced.

Acura dealer association nabs retiring pitcher Mariano Rivera for New York spot

Mariano Rivera, considered one of Major League Baseball's best relief and closing pitchers, bought an Acura when he debuted in the major leagues in 1995, and has owned nothing but Acuras since. So it was only natural for the New York Acura Dealers group to strike up a partnership. The fruits of the deal can be seen in the latest New York Acura commercial, called "Legends," which stars Rivera and Acuras new and old. It's narrated by actor Steve Schirripa, who played Bobby "Bacala" Baccalieri in HBO's The Sopranos.
"The spots are a nod to Acura's history and the years it overlapped with Mariano's career," says Scott Rodgers, chief creative officer at Tier10, the ad agency that developed the campaign's concept. With the "Legends" campaign, Rivera and the New York Acura Dealers continue a partnership that has provided $800,000 to the pitcher's charity, the Mariano Rivera Foundation.
The hardest part of the commercial was was finding the cars to star in it, according to Douglas Sonders, co-founder of 8112 Studios, the production company that shot the commercial. "Social media saved the day for us," he says. "After days of cold calls and e-mails to all of our contacts, we ended up sourcing everything we needed in 24 hours after asking our online contacts for assistance."