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Honda boss says Chinese drivers don't want green cars

According to The Wall Street Journal, Honda CEO Takanobu Ito believes that China's nascent car-buying demographic isn't all that interested in hybrid cars - at least not yet. The emissions story doesn't resonate with them, and certainly not for the higher purchase premium such models usually carry. What they really want, Ito believes, is reliable, affordable cars that fit their needs. When it comes to Honda sales, the numbers would appear to jibe with his thoughts: Honda sold 598,577 vehicles in China last year through its two joint ventures, yet just 542 of them were hybrids - not even a tenth of a percent. However, Toyota sold 840,500 cars in China last year, and two percent of that total, 17,300 units, were hybrids, which is closer to the still-piddling three-percent ratio of sales that Toyota posted in the US last year.
Honda offers the Insight, Fit Hybrid and CR-Z in China and plans to make components for its Integrated Motor Assist hybrid system there from next year, the hope being it will reduce the cost of hybrid cars for local buyers. That was one part of the plan Honda laid out last year to popularize its IMA system in China. Other initiatives include the introduction of a new hybrid system for mid-sized and large vehicles and a plug-in hybrid. Among the four new vehicles Honda showed during this weekend's press day for the Shanghai Motor Show (including the Concept M minivan pictured above) there was not a single hybrid among them.

Honda, Subaru airlifting parts to bypass port labor diputes

It should be abundantly obvious that a vital element in building cars is actually having the components on hand to assemble them. A labor dispute on the West Coast between the International Longshore and Warehouse Union and management is not making that quite so easy for some Japanese automakers. Work slowdowns at the ports have pushed Honda and Subaru parent Fuji Heavy Industries into flying some parts into the country. The two automakers began shipping by airplane late last month to avoid production delays, according to Bloomberg, but it has been an expensive solution. Subaru's chief financial officer said the decision cost around $60 million more per month than sending components by cargo ship. They aren't the only companies dealing with the problem, either. Toyota reportedly stopped overtime assembly at some of its factories here because of the delays in getting parts, according to Bloomberg. The dockworkers have been negotiating on a new contract since May 2014, and the current offer on the table to them has offered a 3 percent raise, according to Bloomberg. Although, the union is reportedly considering another slowdown at 29 ports along the West Coast in the coming days. News Source: BloombergImage Credit: Nick Ut / AP Photo Auto News UAW/Unions Honda Subaru Toyota shipping port labor dispute

It turns out Takata isn't willing to expand airbag recall nationally after all

There have been "approximately 0.000006 failures per air bag deployment, which is far below the failure rate" of most recalls, Takata claims. Takata has seemingly made an about face following reports that it would expand its regional airbag recall into a nationwide repair effort, issuing a scathing, four-page letter rebutting allegations by the National Highway Traffic Safety Administration and its Office of Defects while simultaneously attacking the government's handling of the situation. The Japanese supplier claims in its letter that the "currently available, reliable information does not support a nationwide determination of a safety defect," arguing that there were "approximately 0.000006 failures per air bag deployment, which is far below the failure rate in the vast majority of the thousands of recalls," The Detroit News reports. Takata then breaks down the two specific incidents mentioned in NHTSA's original recall request letter, a 2005 Honda Accord and 2007 Ford Mustang. Referencing the two crashes, NHTSA Administrator David Friedman said last month "one incident is an anomaly, but two are a trend." The supplier, though, argues the Honda issue is already being covered by that company's soon-to-be-national recall (more on that in a moment). The company then goes on to point out that neither Takata nor NHTSA has been able to analyze the Mustang's airbag inflator, saying that such a lack of examination meant there was "no way to ascertain what actually occurred during the incident, whether any inflator ruptured, and whether any inflator rupture that may have occurred was related to the incidents that led to the current regional campaigns." Takata alleges that NHTSA has disobeyed its own statutes. Takata also took the opportunity to take a few swipes at NHTSA's behavior during the airbag scandal, saying it was "very surprised to receive" a recall request letter because the ODI had yet to even receive the company's responses to a pair of special orders. It also alleged that NHTSA was disobeying its own statute, which says only manufacturers of vehicles and replacement equipment can "decide in good faith whether their products contain a safety related defect," and that the government can only "issue an initial decision that a safety-related defect exists" to those same entities.