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Honda ending CR-Z, Insight sales in Europe

Death by diesel? That may be the epitaph of the Honda Insight and CR-Z in Europe, where the Japanese automaker will discontinue sales of the two hybrid models before to the 2015 model-year. A Honda spokesman confirmed the discontinuation to Automotive News, and information on those models has been taken off of Honda's official websites in Germany, Spain and Italy. The European embrace of all things diesel and fuel efficient as well as competition from Toyota are the primary culprits. The cancellation is not a surprise. Insight sales in Europe fell a whopping 62 percent last year while CR-Z sales there plunged 66 percent. Combined, both models sold less than 2,000 units in Europe last year, Automotive News says, citing JATO Dynamics. Honda is having trouble moving the Jazz Hybrid (also known as the Fit) in Europe as well. European sales declined about 40 percent last year to around 4,500 units. Those numbers compare rather unfavorably to a 43 percent surge in Toyota's hybrid sales in Europe to about 153,000 units. The Insight may face the same fate in the US. Last year, US Insight sales fell 18 percent to 4,802 units, a small, small challenge to the more than 234,000 Toyota Prius variants sold in the US in 2013. Honda has not made an official statement on the Insight's fate here, but the sales are speaking for themselves. Featured Gallery 2014 Honda CR-Z Hybrid View 14 Photos News Source: Automotive News - sub. req. Green Honda Hybrid hybrid sales

Honda Fit, Vezel Hybrids recalled in Japan; US vehicles not affected

Honda has announced a good-sized recall of two popular Japanese-market hybrids: the Fit Hybrid and the Vezel Hybrid are both headed back into the garage. The problem this time around lies in the software program that controls the 7-speed dual clutch transmission (DCT) that could "cause a delay in the ability to begin driving or the inability to move at all." In total, 81,353 units are affected (70,929 Fit Hybrids and 10,424 Vezel Hybrids) and all were made in Japan between July 2013 and February 2014. There were two previous recalls for the new Fit Hybrid's DCT, and you can find the details of them below. Jessica Fini, assistant manager of PR for Honda North America, told AutoblogGreen that this recall will not have any impact on US Honda vehicles. For one thing, the US Fit has a continuously variable transmission (CVT) instead of a DCT, so the upcoming launch of the new Fit here (the US doesn't get the Fit Hybrid) will not be delayed. Honda's upcoming small SUV in the US (based on the Vezel, but will arrive with a different name) isn't going to launch here until the end of the year, so there is time to fix any problems before launch. She also said that the Acura RLX, despite being a DCT, does not use the same transmission as the Fit Hybrid does, since the Fit transmission is specific to the one-motor hybrid system and the RLX uses three electric motors. Recall of All-New Fit Hybrid and Vezel Hybrid ref. # C14-009 TOKYO -- February 10, 2014 – Honda Motor Co., Ltd. today announced a voluntary recall of the all-new Fit Hybrid and Vezel Hybrid produced in Japan from July 2013 through February 2014 due to a problem with the software program controlling the 7-speed dual clutch transmission (DCT) which could cause a delay in the ability to begin driving or the inability to move at all. Honda today notified the Ministry of Land, Infrastructure, Transport and Tourism of the recall with a total recall population of 81,353 units. Honda conducted two recalls in October and December 2013 due to a defect with the software program controlling the 7-speed DCT which could have caused a delay in the ability to drive the vehicle or the inability to drive. This will be the third recall related to the defect of the 7-speed DCT.

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.