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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.

2014 Honda Civic Coupe

Honda lifted the covers off its refreshed Civic Coupe at SEMA earlier this month, showing off its updated styling and redesigned 18-inch wheels, but didn't unveil its interior or mechanical upgrades until today at the LA Auto Show. Eager to show off its latest arrival, Honda allowed me to check out and drive the new coupe a few weeks ago.
The interior, which was hidden beneath heavily tinted glass at SEMA, features new colors, upgraded seating materials and new technology. The interior themes are now more color coordinated and feature upgraded Tricot soft weave. Black is the standard interior color, with a choice of black or gray seats. A new display audio system is also found on the EX/EX-L trims. The seven-inch capacitive-touch screen, with a matte finish to reduce the annoyance of greasy fingerprint marks, allows users to not only tap once for a function, but to double-tap, slide, flick and pinch - as if they are using a familiar smartphone or tablet. The new infotainment interface not only accepts USB and Bluetooth data exchange, but has also been configured with HDMI for future upgrades. Some of you may have also noticed the exterior mirrors on the SEMA car, as they were fitted with cameras for Honda's blind spot minimizing Lanewatch system. It is now offered on the Civic Coupe for EX trims and above.
Mechanically, the new Civic Coupe rides on an upgraded suspension system that features revised spring rates (front up by four percent, rear up by three percent), a stiffer rear stabilizer (up by 25 percent) and larger 16-inch wheels (wearing 205/55R16 tires). The engineering objective was to improve handling and responsiveness while flattening cornering. According to Honda, the tweaks should give the Civic Coupe better linear steering feel than either the Hyundai Elantra or the Ford Focus.

Brand new cars are being sold with defective Takata airbags

If you just bought a 2016 Audi TT, 2017 Audi R8, 2016–17 Mitsubishi i-MiEV, or 2016 Volkswagen CC, we have some unsettling news for you. A report provided to a US Senate committee that oversees the US National Highway Traffic Safety Administration (NHTSA) and reported on by Automotive News claims these vehicles were sold with defective Takata airbags. And it gets worse. Toyota and FCA are called out in the report for continuing to build vehicles that will need to be recalled down the line for the same issue. That's not all. The report also states that of the airbags that have been replaced already in the Takata recall campaign, 2.1 million will need to eventually be replaced again. They don't have the drying agent that prevents the degradation of the ammonium nitrate, which can lead to explosions that can destroy the airbag housing and propel metal fragments at occupants. So these airbags are out there already. We're not done yet. There's also a stockpile of about 580,000 airbags waiting to be installed in cars coming in to have their defective airbags replaced. These 580k airbags also don't have the drying agent. They'll need to be replaced down the road, too. A new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time. If all this has you spinning around in a frustrated, agitated mess, there's a silver lining that is better than it sounds. So take a breath, run your fingers through your hair, and read on. Our best evidence right now demonstrates that defective Takata airbags – those without the drying agent that prevents humidity from degrading the ammonium nitrate propellant – aren't dangerous yet. It takes a long period of time combined with high humidity for them to reach the point where they can rupture their housing and cause serious injury. It's a matter of years, not days. So a new vehicle with a defective Takata airbag should be safe to drive, but that margin of safety decreases with time – and six years seems to be about as early as the degradation happens in the worst possible scenario. All this is small comfort for the millions of people who just realized their brand-new car has a time bomb installed in the wheel or dashboard, or the owners who waited patiently to have their airbags replaced only to discover that the new airbag is probably defective in the same way (although newer and safer!) as the old one.