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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.

2016 Acura MDX gets 9-speed transmission, added refinement

It's a car we barely think about until Acura announces it's done something to it, but the MDX is rather popular with those questing for a crossover. For 2016 the third-generation, luxury three-row people-carrier gets a slightly higher MSRP, but better standard equipment and options to go with it. The big change is that the nine-speed automatic transmission with tighter ratios and faster gear shifts, as well as its push-button gear selector, has finally migrated from the top-dog RL sedan. So too the upgraded twin-clutch Super Handling All-Wheel Drive, paired here with the unchanged 290-horsepower, 3.5-liter six-cylinder. We thought adding three more cogs was supposed to make for better fuel economy, but in some cases the EPA ratings on the 2016 MDX have gone down by one mile per gallon. The base 2015 MDX is rated at 20 city, 28 highway, 23 combined; the 2016 is rated 19 city, 27 highway, 22 combined. Add SH-AWD on the 2015 and you're looking at 18 city, 27 highway, 21 combined; on the 2016 that's 18 city, 26 highway, 21 combined. If you add idle-stop to those models you restore the city and combined ratings, but still lose that extra mile on the highway. On the options list is a group of safety and driver assistance features grouped under the AcuraWatch rubric. You can add the whole kit for $1,500 to the base model, but some of its features like Lane Keep Assist and Forward Collision Warning, which you can also option on the 2015 model, are added with the Technology Package. The full suite, which includes model-firsts like Road Departure Mitigation and Rear Cross Traffic Monitor, is standard once you step up to the Advance Package. Other tech treats get baked into all trims, like the easy entry/exit driver's seat slides back 1.4 inches when you're getting in and out, the TPMS fill assist that sounds a beep when you've inflated the tires to the correct pressure, Siri Eyes Free voice recognition and a frameless rearview mirror. The price to get in on all this is $42,865, a a $1,100 bump over the 2015 model, but that's not a blanket increase across the lineup: the MDX with the Technology Package, for instance, has only gone up $250. The upper limit comes with the MDX SH-AWD with idle stop and the Advance, Entertainment & AcuraWatch Plus Packages for $57,080, a $100 increase over the top-of-the-line 2015 trim. The press release below has plenty of details.

Honda HR-V could spawn Acura variant

We've been saying it for months now, but the compact CUV is the next big thing. Everyone, and we mean everyone, is at least considering getting in on the action, if they aren't already actively designing or selling, and that's true whether they're a premium or mainstream automaker. That, of course, includes Acura, whose parent company, Honda, has a compact CUV of its own coming to market very, very soon. With the arrival of the Fit-based HR-V, that begs the question of whether the near-premium marque will join this burgeoning segment. The idea of building a car below the company's entry level CUV, the RDX, is an appealing one to Honda Executive Vice President John Mendel, who called it "potentially the only place you could go," and would occupy the "white space" the company is looking to fill. While we might chuckle about the idea of a luxurious, Fit-based CUV, it's fair to say it could do well for Acura. It could certainly provide a foil to the very hot selling Buick Encore, and may even capture some sales from the luxuriously outfitted Jeep Renegade Limited/Fiat 500X Lounge. It remains to be seen, though, if Acura could build an HR-V capable of tangling with the new entries from Lexus, Audi and Mercedes-Benz.