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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.

Trump declaration they're a security threat stuns Japanese automakers

TOKYO — Japan's automakers' lobby said on Tuesday it was dismayed by President Donald Trump's declaration that some imported vehicles and parts posed a threat to U.S. national security, as the industry braces for a possible rise in U.S. tariffs. Trump made the unprecedented designation of foreign vehicles on Friday but delayed for up to six months a decision on whether to impose tariffs to allow for more time for trade talks with Japan and the European Union. "We are dismayed to hear a message suggesting that our long-time contributions of investment and employment in the United States are not welcomed," said Akio Toyoda, chairman of the Japan Automobile Manufacturers Association. "As chairman, I am deeply saddened by this decision," Toyoda, president of Toyota, said in a statement. Trump has threatened to impose tariffs of up to 25% on imported cars made by foreign automakers, a move which automakers have argued would ramp up car prices, curb the global competitiveness of U.S.-made vehicles and limit investment in the country, the world's No. 2 auto market. The United States is a vital market for Toyota, Nissan, Honda and other Japanese car makers. Autos and components are among the Asian country's biggest export products. Most of Japan's major automakers operate plants in the United States. The Japan Automobile Manufacturers Association notes that its automakers build about 4 million vehicles a year in North America, or 75 percent of what it sells here. Many are built for export, helping lessen the U.S. trade deficit Trump is concerned about. Major automakers have announced a slew of investments in the United States since Trump took office in January 2017 and put pressure on the industry to create more U.S. jobs. For its part, Toyota has pledged to invest almost $13 billion in the United States between 2017 and 2021 to boost manufacturing capacity and jobs. This includes $1.6 billion for a vehicle assembly plant in Alabama jointly run with Mazda. Government/Legal Honda Mazda Mitsubishi Nissan Toyota Trump

Florida woman says Takata airbag deployment left her paralyzed

A malfunctioning Takata airbag left a Florida woman paralyzed from the neck down following an otherwise minor car accident last year, a lawsuit filed last week alleges. Patricia Mincey says in court documents that, instead of deploying normally, the driver-side airbag in her 2001 Honda Civic deployed with such force that it injured her neck and rendered her a quadriplegic. The lawsuit accuses Takata and Honda of deliberately concealing information about the defect and taking belated action to protect Mincey and other motorists from airbags that may harm them instead of saving their lives. At least five deaths and 139 injuries have been linked to the flawed airbags in Honda vehicles. "There is a systemic failure of these companies to come clean with information they know very early on of problems," Ted Leopold, Mincey's attorney, tells Autoblog. "Instead of doing the right thing, they try to sweep the problems under the rug until there are so many deaths and injuries they're left with no choice. We saw it with General Motors ignition switches, we saw it with the Toyota unintended acceleration cases and now we see it here." Long History Of Takata-Related Recalls Four days after Mincey's accident, Honda recalled her car as part of a 5,394,000-vehicle recall that sought to repair vehicles in which the airbag inflators could rupture. Her accident took place in Jacksonville, Florida, a state in which manufacturers have said high humidity could cause a heightened risk of problems for Takata airbags. She was wearing her seat belt at the time of the crash, according to court documents, and her car was traveling approximately 22 miles per hour. Mincey remains hospitalized in a long-term care and rehabilitation facility near her Florida home, her attorney said. She is seeking compensation in excess of $15,000 for her injuries and punitive damages. Problems with the Takata airbags were discovered as early as 2001, when Isuzu issued the first recall related to high-pressure deployments. But the company continued to manufacture defective airbags, which have subsequently been flagged in dozens of recalls over the past 14 years. Approximately 21 million vehicles have been affected in the United States. Congress conducted hearings on the companies' delayed responses to the safety crisis last year.