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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.

2019 Acura RDX named a Top Safety Pick+ by IIHS

To the accolades being heaped on the all-new 2019 Acura RDX, the automaker can now add another: a Top Safety Pick+ designation from the Insurance Institute for Highway Safety, the organization's coveted top rating. IIHS cites the SUV's good crashworthiness ratings, standard front crash prevention technology and even the availability of "good"-rated headlights, which has become perhaps the group's most daunting hurdle. To qualify for IIHS's top award, a vehicle must earn "good" ratings in the driver-side small overlap front crash test, moderate overlap front, side, roof strength and head restraint tests and an "acceptable" or "good" rating in passenger-side small overlap test. The RDX earns "good" ratings across the board. IIHS also rated the standard AcuraWatch safety technology as "superior," saying it avoided collisions at 12 and 25 mph, and it rated the base LED headlights as "good" and the curve-adapted headlights on the top-of-the-line Advance trim as "acceptable." Autoblog recently learned that 40 vehicle models earned good enough crash ratings to qualify for IIHS' Top Safety Pick rating but fall short because they don't meet the organization's criteria for good headlights. Acura says the 2019 RDX features the newest generation of its Advanced Compatibility Engineering body structure, plus new high-strength steel door stiffener rings and eight airbags. The AcuraWatch suite of safety technologies includes collision mitigation braking, adaptive cruise control and road departure mitigation, all standard. The RDX is powered by a 2.0-liter turbo-four engine that makes 272 horsepower and 280 pound-feet of torque and comes with a 10-speed automatic. The compact luxury crossover went on sale June 1 and set monthly sales records in both June and July. You can find Autoblog's driving review of the 2019 RDX here. Related Video:

Honda recalls 2.7 million vehicles for new air bag inflator defect

WASHINGTON — Honda said on Tuesday it will recall 2.7 million older U.S. vehicles in North America for potentially defective air bag inflators. The defect involves a different type of Takata inflator than those that have prompted the largest-ever auto safety recalls worldwide covering more than 42 million U.S. vehicles by 19 automakers with Takata air bag inflators. The new recall covers Honda and Acura automobiles from the 1996 through 2003 model years. Honda said it is aware of one field rupture of an inflator in the new recall campaign — a 2012 crash in Texas that resulted in an injury — and two in junkyards in Japan. The campaign covers 2.4 million U.S. vehicles and 300,000 in Canada, Honda said, adding that it has not determined recall numbers for other countries. Takata issued a new defect notice in November for inflators from four automakers, including Honda. Honda said all three vehicles "potentially were exposed to unusually high amounts of moisture prior to the rupture events." Honda said the recalls cover driver front airbag inflators manufactured with non-azide propellant and said "all inspections and repairs will begin in approximately one year, as replacement parts from alternative suppliers are not yet available." Honda said it "regrets any inconvenience or distress that this situation may cause to our customers as we seek to resolve this situation. Honda believes that the risk of improper airbag deployment in its vehicles remains very low at this time, but we cannot absolutely guarantee the performance of any recalled part." Related Video: