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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.

Next CR-Z to lose hybrid powertrain, go with turbo four

The Honda CR-Z has been treading water for years and has already left the European and Australian markets. Meanwhile, it has hung to life in the US with 3,562 total units sold in 2014. The little coupe looks like it should be a winner, though, as the reinterpretation of the classic CRX for the modern age. Unfortunately, a serious lack of performance to back up the sporty styling lets the model down. Although rumor has it, the CR-Z that drivers keeping asking for could be just a few years away. An anonymous source related to Honda's Tochigi, Japan, development center told Car and Driver that a significantly more potent new generation of the CR-Z is on the way to dealers in 2018 with a possible unveiling in 2017. "The new coupe will be a force to reckon with," the insider said. The new CR-Z would reportedly be slightly larger and would be based on a shortened version of the next-gen Civic's platform. Car and Driver even speculates a possible branding change to become the Civic CR-Z. The most encouraging change for performance fans, though, is the coupe finally ditching the IMA hybrid in this market in favor of the 2.0-liter turbocharged four-cylinder from the European Civic Type R. The engine would allegedly be detuned to around 280 horsepower for this application from the 306 hp in the CTR. The hybrid isn't going away entirely, though. For the Japanese market, the CR-Z would use Honda's 1.5-liter turbocharged four-cylinder with electric assist to make around 200 hp. Until anything official comes out, it might be best to treat all of this tantalizing info with a large grain of salt. Rumors of a future CR-Z using the next-gen Civic platform have circulated since 2013, and there has been speculation about using the CTR engine, too. Related Video:

NHTSA probing 400,000 Infiniti, Honda vehicles over steering faults

As many as 391,000 vehicles from Infiniti and Honda may eventually need to be recalled as a result of two, separately announced Preliminary Evaluations from the National Highway Traffic Safety Administration to ascertain the scope of the potential safety hazards.
The larger investigation has NHTSA looking into the 2013 Honda Accord because of 24 reports from drivers alleging total loss of power steering or a sudden increase in necessary effort to turn the vehicle. In four cases, the problem is reportedly linked to crashes, with all of them occurring at less than 30 miles per hour. According to the claims, 13 people also reported seeing a warning message during the failure. Turning off the car and restarting it would fix the issue in some cases. If a recall is necessary, it could affect an estimated 374,000 Accords.
The second investigation is much smaller in scope. The safety agency is investigating the 2008 Infiniti EX35 after two complaints of the steering wheel shaft separating, and the vehicle losing the ability to steer. Both reports allege that the steering became loose when driving and then completely failed once the vehicle was stopped. A recall for the problem would affect an estimated 17,000 vehicles. Scroll down to read NHTSA's reports on both Preliminary Evaluations.