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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.

Why Honda of America won't fit 2014 Fit models with start/stop

One of the most recent yet notable additions to the modern vehicle's growing suite of fuel-saving technologies is the humble start-stop system. It's rather simple - when the vehicle is stopped, the engine shuts off. It then fires back up when the driver starts to take his foot off the brake or step on the clutch. For one of the most important fuel sippers of the year, though, start-stop tech is a no-go.
Honda will not be offering the system on the North American-spec, non-hybrid Fit despite it being a standard item on both the hybrid (pictured above) and gas-only Japanese domestic models. According to Honda, it's ostensibly due to the momentary lag, that occurs when the gas engine re-fires and power is available. The start-stop-equipped Fits "will lose at stoplights to V6s," Nobuhiko Shishido, the lead powertrain engineer for the Fit, told Automotive News. This is just an observation on our part, but unless the new Fit turns up with dramatically more than the current car's 117 horsepower, it'll "lose at stoplights" regardless of whatever fuel-saving features are fitted.
The other issue Honda sees is more realistic. In the world of the EPA, stop-start systems are not taken into account in fuel economy testing. That makes the cost-adding technology a tough sell for US consumers who are forced to take a dealer's word on real-world economy gains over the milage numbers on the window sticker. That said, wouldn't it at least make sense to offer start-stop as an option? Have your say in the Comments below.

Refreshed Honda Civic's first commercial is a minor mea culpa

Honda has officially rolled out the first ad for the 2013 Civic. The one-minute spot focuses on a number of clever inventions that improve on old themes, from rocket-powered parachutes to hover bikes and smart window shades, before shifting to the redesigned compact. Set to Santigold's "Disparate Youth," the ad culminates with the phrase, "Things can always be better." This is likely as close as we'll come to hearing Honda say, "we could have done better."
Unveiled at the 2012 LA Auto Show, the 2013 Civic features revised front and rear fascias, nicer cabin materials and an updated suspension just one year after the ninth-generation model debuted. That car received scaling reviews from critics, most notably Consumer Reports, who felt the 2012 Civic was a step backwards for a company known for producing high-quality, economical vehicles. You can check out the full ad for the 2013 Civic below before it debuts during the Rose Bowl.