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Honda execs take 'quality-related' pay cut after Fit Hybrid's 5th recall

Generally, the best policy in life is to admit when you're wrong and just accept the consequences. However, that attitude generally seems to be a bit less common in the world of business - at least without some government or legal prodding. So, it's especially surprising to learn that top Honda executives in Japan are taking a pay cut for the next three months following the fifth recall of the Fit Hybrid (pictured above) in the last 12 months.
According to Reuters, Chief Executive Takanobu Ito is taking a 20-percent pay cut to make amends for the quality issues. Also, 12 other high-ranking executives are taking 10 percent drops in their salaries. In addition to those temporary changes, Honda is creating a new position in charge of monitoring vehicle quality.
The latest recall fixes "noise-related defects," according to Reuters, on both the hybrid and naturally aspirated versions of the Fit, both variants of the Vezel (the sibling to the future HR-V in the US) and the N-WGN. There have also been three recalls for problems with the hybrid's seven-speed dual-clutch transmission. None of them have caused reported injuries or deaths, and these issues haven't affected US models.

2016 Honda Pilot First Drive [w/video]

For all it had going for it, the second-generation Honda Pilot was stung by one undeniable fact: it looked like a big, boxy SUV at a time when consumer favor was shifting towards car-based crossovers. For 2016, though, Honda is offering a third-generation Pilot that not only does away with the old model's brutalist looks, but also adopts bleeding-edge safety technology and fuel-efficient powertrains. The Pilot's new styling still doesn't really work, to our eyes. That's not because of the CR-V-inspired headlights or Accord-derived grille. It's not even because of the horizontally oriented, reshaped taillights. The biggest problem with the Pilot is its profile. The hood is an inch lower for 2016, and the CUV is 3.5 inches longer than its predecessor with an extra inch ahead of the front axle. Simply put, the proportions are out of whack. The hood is too short, the passenger compartment too large, and the beltline too low. It's little wonder then that both Autoblog staffers and readers have pointed out the 2016 Pilot's minivan-like resemblance. Changes underneath the Pilot's sheetmetal are just as drastic. Honda incorporated a mix of high-strength steel, aluminum, and even magnesium to create the CUV's new bones. Taken as a whole, our top-of-the-line Elite tester is 286 pounds lighter than the previous model, while being 25 percent more rigid overall. Aside from some penny pinching in the cabin – the hard plastic on the top of the rear door panels is particularly egregious – the Pilot's interior is home to soft-touch plastics, quality leather, and handsome piano black accents. Front passengers are treated to broad, comfortable, power seats, complete with heating and ventilation (depending on trim). What they lack in outright support through the turns, they make up for in long-haul comfort. Honda will continue to sell the Pilot with seating for eight, but for the very first time, it's also offering a pair of captain's chairs in place of the second-row bench. Either setup is comfortable, though the seven-passenger layout allows easier access to the third row. As for the way-back, it can accommodate two kids or two adults in a pinch, but we aren't sure how Honda thinks three humans of any size will fit back there. Happily, Honda ditched the two-screen center stack setup found elsewhere in its model range. The Pilot's ample eight-inch display (standard on the Touring and Elite trims) has menus that are easy to manage.

Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.