Honda Reveals All-new 2015 Fit at 2014 NAIAS in Detroit (VIDEO)

Accavitti expands Honda role

by Mark Rechtin of www.autonews.com

LOS ANGELES -- Mike Accavitti, the former Chrysler executive who became American Honda's chief marketing officer in 2011, is adding responsibility for several key departments, including product planning.
Accavitti, 54, has been promoted to senior vice president of automobile operations. While continuing to supervise national marketing operations, he will add product planning, logistics, sales and production planning, distribution, quality assurance, company vehicle administration and market research.

His ascension and new duties should give American Honda more say in the parent company's product planning process. Although Honda's U.S. engineering team is heavily involved in many products sold in North America, decisions on global platforms often are deferred to Japan.

The volume-leading Accord, Civic, Odyssey and CR-V have been redesigned in the last two years, so r&d work on the next generation is just beginning.

The pairing of Accavitti with John Mendel, executive vice president of sales, mirrors the successful structure Honda used last decade, when sales boss Dick Colliver and product chief Tom Elliott operated as a two-man team.

The change takes effect April 1.

Mendel, 58, remains in charge of American Honda sales, sales communications and dealer operations. In an interesting split, Accavitti handles national marketing and advertising, while Mendel oversees regional marketing and advertising.

Accavitti's new duties give more clout to an area of American Honda previously overseen by Art St. Cyr, vice president of corporate planning and logistics. St. Cyr retains those duties, but now reports to Accavitti.
As before, both Accavitti and Mendel will report to American Honda President Tetsuo Iwamura, who recently was promoted to executive officer of Honda Motor Co.

Accavitti joined Honda after a short stint at Cisco Systems, which followed a 25-year career at Chrysler. He was president of the Dodge brand and lead marketing executive at Chrysler Group before his 2009 departure.

Currently, Accavitti's main job is overseeing the $900 million national advertising agency review for the Honda and Acura brands. A decision regarding the final four candidates, including incumbent agency RPA, is expected by the end of March.

Source;
http://www.autonews.com/apps/pbcs.dll/article?AID=/20130318/OEM02/303189967/accavitti-expands-honda-role#axzz2NzahINOk

Honda Counters Weak Yen Criticism After U.S. Objections

Hmmm, where were The American Automotive Policy Council when the yen was at a disadvantage for Japanese Auto Makers????

By Craig Trudell - Feb 8, 2013

 

Honda Motor Co., targeting record U.S. sales this year, said the weaker yen isn’t giving the Japanese company an advantage after a group representing U.S. automakers called for government intervention.

“I defy anybody, when we’re building 90 percent of what we sell here, to say we have a currency advantage,” John Mendel, the Tokyo-based company’s executive vice president of U.S. sales, said yesterday at a J.D. Power & Associates conference in Orlando, Florida. “I don’t think the current level of 90-plus yen to the dollar is a cause for alarm.”

Honda, Japan’s third-largest automaker, relies on the U.S. for more than 30 percent of its global sales. The American Automotive Policy Council, which represents Ford Motor Co., General Motors Co. and Chrysler Group LLC, said in January that President Barack Obama should tell Japan’s new government that the U.S. will retaliate for policies aimed at weakening the yen.

The yen, which has weakened more than any currency since mid-November, trades at about 93 to the dollar and 124 to the euro. Honda’s operating income gains by 16 billion yen annually for every 1-yen drop in the dollar rate, and 1 billion yen for each 1-yen drop in the euro rate, according to the company.

Honda on Jan. 31 cut its net income expectation for the year ending in March by 1.3 percent to 370 billion yen ($4 billion), countering other Japanese exporters that have raised their forecasts after the yen tumbled. The company cited a slower-than-expected recovery in sales in China and weakness in European demand.

‘Deathbed’ Rates

“Nobody worried about Japan” when the yen “went from 115 to 78, and said ‘Geez, I hope those guys are OK,’” Mendel told reporters yesterday. “Now all the sudden it’s moderately off deathbed kind of rates, and everybody’s going ‘Unfair.’ Let’s focus on the quality of products. Let’s focus on the customer.”

Honda’s American depositary receipts fell 1.1 percent to $37.89 at the close yesterday in New York. They’ve gained 3.4 percent for the 12 months ended Feb. 8 as the Standard & Poor’s 500 Index rose 12 percent.

U.S. automakers have said the undervalued yen distorts trade and stunts job growth for American manufacturers. Japan’s Liberal Democratic Party, which reclaimed power in December, has let the yen continue its slide against the dollar, making U.S. auto exports relatively expensive, the American Automotive Policy Council said in a Jan. 17 statement.

“We urge the Obama administration to make it clear to Japan that such policies are unacceptable and will be met by reciprocal measures,” Matt Blunt, a former Republican governor of Missouri and president of the Washington-based industry group, said in last month’s statement.

‘Japanese Giant’

A weaker yen is “awakening the Japanese giant,” Adam Jonas, a New York-based analyst at Morgan Stanley, wrote in a Jan. 28 report. He said he expects market share for Honda, Toyota Motor Corp. and Nissan Motor Co. to rebound on an improved ability to market their vehicles and equip them with better content and interior features.

“With the correction in the yen trend, they are likely to switch from a defensive to an offensive mode,” Jonas wrote of the Japanese automakers. “Short-term positives include access to a wider selection of pricing strategies with regards to incentives and cutting prices.”

Honda Incentives

Honda’s Mendel said he expects the company will reduce its incentives in the U.S. this year because of recently introduced models such as the revamped Civic small car and Accord sedan. Honda increased spending on marketing promotions last year by 3.9 percent to $2,206 a vehicle, as the industry average fell 1.7 percent to $2,482, according to researcher Autodata Corp.

U.S. sales for Honda climbed 24 percent to 1.42 million cars and light trucks last year, rebounding from natural disasters in Asia that disrupted production in 2011. Honda’s best year in the U.S. was 1.55 million Honda and Acura vehicles sold in 2007, and the company wants to exceed that mark in 2013, Tetsuo Iwamura, the automaker’s executive vice president, said last month at the Detroit auto show.

Output at the company’s North American plants surged last year to a record 1.69 million vehicles. Honda plans to be a net exporter as its plants in the U.S., Canada and Mexico take more responsibility for developing global models for sale in multiple countries, the company said in December.

“While the purpose of local production is really to build products close to the customer, this strategy also has minimized the effects of exchange rates in our business,” Mendel said.

Honda is adding a factory in Mexico to produce Fit hatchbacks starting in 2014. With the addition of that plant, Honda has said it will have capacity to build at least 1.9 million vehicles in North America annually.

“Renewed rhetoric about exchange rates giving an advantage to Japanese automakers just really doesn’t pass the sniff test,” Mendel said.

Source;
http://www.bloomberg.com/news/print/2013-02-08/honda-counters-weak-yen-criticism-after-u-s-criticism.html

Honda scolds Kia over fuel-economy debacle

A Honda senior executive took a swipe at Hyundai-Kia for inflating fuel-economy claims on several models.

"It lowers the level of trust customers have for our industry," said John Mendel, executive vice-president automobile sales at American Honda Motor Co. Inc.

Carmakers must never "betray the trust of our customers and society," Mendel said during a speech to the Automotive News World Congress, held recently in Detroit.

In November, automakers Hyundai and Kia admitted that their fuel-economy ratings of 13 nameplates from the 2011-13 model years were inflated.

That accounted for about 900,000 sold vehicles.

Source;

http://www.thestarphoenix.com/business/Honda+scolds+over+fuel+economy+debacle/7854609/story.html

ILX launch has Acura execs plotting quick changes

 

LOS ANGELES -- Acura sales are climbing again after last year's earthquake-caused inventory crisis, but the launch of the ILX compact sedan has been a disappointment for Honda's premium brand.

Now Acura is planning a powertrain change for the ILX and will highlight technical features on the RLX flagship sedan due next spring as part of a strategy to return brand sales to the 200,000 level.

The ILX "is not hitting its sales expectations," said John Mendel, American Honda executive vice president.

The ILX is based on the Honda Civic platform. And although some Audis borrow from Volkswagen and some Lexus models take from Toyota, the ILX's roots may be a bit too evident against the BMW 1 series and Lexus CT 200h.

The car was meant eventually to replace the aging, slightly larger TSX. But November was only the second time since the May introduction of the less-expensive ILX that it outsold the TSX, which is still going strong.

The ILX is being outsold by the Buick Verano, Volkswagen CC and Audi A4, though it has an edge on the CT 200h and the outgoing Audi A3.

Last month Acura sold 2,108 ILXs, compared with sales of 3,574 Veranos, 3,343 A4s and 2,197 CCs.

The main problem: The base and midgrade ILX have a 2.0-liter engine that is "underpowered, and consumers don't see the value," Mendel said. What's more, the upmarket 2.4-liter engine only comes with a manual transmission. Though it's pitched as a performance feature, few Acura buyers actually want to row the gears. "The car was planned for a 2.4 automatic, and we're working to fulfill that," Mendel said, though he could not say when. "We're looking to sell about 30,000 units a year, and we're probably closer to 22 or 24 right now," Mendel said, speaking of the annual sales rate. "We're hitting two-thirds of our expectations, but we're growing every month and catching on more." Fortunately for Acura, the redesigned RDX compact crossover -- also launched this year -- is off to a stronger start. It is outselling the Audi Q5 and Volvo XC60, and is hot on the heels of the BMW X3. Although it shares some components and a platform with the Honda CR-V, the RDX has a more distinctive interior. The jerky turbo-four engine has been replaced by a smoother V-6 that has more power and better fuel economy.

The launches of the ILX and RDX set the tone for the redesigned RLX flagship sedan due next spring.

The current RL has been a flop, averaging just 35 sales a month for the past two years. Mendel wants to market the RLX as a technical tour de force, but with the twist that it offers "technology that improves your skills, not that takes them away."

That means pushing items like the RLX's standard Precision All-Wheel Steering (PAWS) system, which allows the rear wheels to have independent toe control during cornering. The rear wheels have their toe-in angles adjusted by electronic actuators while cornering, giving much crisper handling.

"The RLX has the right package to compete with more expensive vehicles," said Art St. Cyr, American Honda's head of product planning and logistics. "The previous RL didn't match what the customers were looking for."

Most luxury manufacturers have allied themselves with premium audio suppliers, and Acura is no different. The RLX will feature a system by Krell, which sells home stereo speakers for upwards of $65,000 a pair.

"We have to discover more ways to get this vehicle in the hands of people," said Mendel. "We need to get butts into seats."

Mendel is looking at expanding the loaner program Acura has with the W hotel chain. Currently, the program only offers guests a ride in the MDX crossover. But the RLX's much larger backseat allows that vehicle to be used as well, he said.

Acura sales were in free fall during the recession. In 2010, Acura sold barely half of its 2005 peak of 209,610 units. This year, sales are up 27 percent and the brand should easily break 150,000 units. And executives have said 200,000 units is a near-term goal.

Should RDX sales continue to be strong, and if the RLX does well, Mendel expects to hit that number in the next year or two -- especially with a redesign of the MDX mid-sized crossover coming next year and the redesigned TL mid-sized sedan and new NSX sports car coming in 2014.

"We have never had a true flagship sedan," said Mendel. "We're in a position now where we can build that flagship, and in a couple years we get the [NSX] sports car. It's when we need it that we will be delivering our signature in terms of smart luxury."

Source;
http://www.autonews.com/apps/pbcs.dll/article?AID=/20121210/OEM03/312109938/rocky-ilx-launch-has-acura-execs-plotting-quick-change

Statement Regarding Forthcoming White House Fuel Economy Announcement by John Mendel, Executive Vice President of Sales for American Honda

07/27/2011 - TORRANCE, Calif.

Honda is proud to have actively worked with the Administration as they developed their proposed national fuel economy and greenhouse gas emissions standards. Honda embraces this challenge, which will be good for our customers and for the environment, and we welcome the competition we will have with other automakers that will result from these new standards.

- John Mendel, Executive Vice President of Sales, American Honda Motor Co., Inc.

Source;
http://www.hondanews.com/channels/corporate-headlines/releases/statement-regarding-forthcoming-white-house-fuel-economy-announcement-by-john-mendel-executive-vice-president-of-sales-for-american-honda

Honda airs confidence as market rebounds

Honda Motor Co. Ltd. executives don’t cite the fable of the tortoise and the hare when discussing the company’s future, but the story seems apt.

The automaker, with the bulk of its U.S. production in Ohio, has seen some bright spots in 2010, including improving sales. It has also encountered troubles, including three recalls involving nearly 1 million vehicles and an inability to convert schadenfreude to sales following the larger woes of competitor Toyota Motor Corp., which has recalled more than 7.3 million cars and trucks this year.

But to John Mendel, executive vice president at sales arm American Honda Motor Company Inc., and Bob Nelson, North American purchasing manager with Honda of America Manufacturing Inc., those are short-term hurdles for a company focused on the long race. And how the company responds is critical to the 13,500 workers it employs in the state.

“Difficult times make us all smarter,” Mendel told Columbus Business First before addressing a transportation conference at Ohio State University on May 3.

Staying sharp
Honda struggled in 2009. Still, it fared better than most competitors, Mendel said. He noted the car maker is headed into the coming years adhering to the same tenets that carried the business in the past – focusing on the customer and producing affordable, reliable vehicles.

Honda projects North American sales to rise 14 percent to 1.5 million vehicles this year from 1.3 million sold in the year ended March 3. Mendel acknowledged industry turbulence has improved rivals, particularly the Detroit Three, which plan to build the smaller, fuel-efficient vehicles that have been Honda and Toyota strengths.

According to Automotive News, Toyota and Honda lost market share in the first quarter – a 1.2 percent decline for Toyota and a 0.4 percent drop for Honda. Ford Motor Co., General Motors Co., Nissan Motor Company Ltd. and Volkswagen AG all gained. And Korean automaker Hyundai Motor Co. has gained on the Japanese leaders in recent years.

“A faster track helps the industry,” Mendel said. “It keeps us on our toes.”

Upcoming additions to Honda’s lineup include a wagon built on the Acura TSX chassis, similar to the new Crosstour that is assembled in Marysville on the Accord platform. Also planned are updated Civic and Odyssey designs, a CR-Z hybrid and a four-door Acura ZDX coupe.

Competition may be threatening from all sides, but Toyota remains Honda’s biggest rival. To power sales amid its recalls, Toyota hiked its purchase and lease incentives in March. It resulted in a 41 percent sales boost for the month, with April sales rising 24 percent over a year earlier.

Both increases trumped Honda’s gains. But where some industry observers saw a missed opportunity, Mendel questioned the depth of the opportunity pool. Incentives, he said, were not the whole story. Loyal customers who bought into Toyota’s image long ago came to its rescue, he said.

“Many Toyota owners already have rejected Honda for whatever reasons,” he said. “They’re less likely to switch over.”

Managing inventory
Honda has been reluctant to depend on incentives to drive sales, and industry upheaval hasn’t changed its mind. Incentives are a tactic, not a strategy, Mendel said. The company uses them to cut the inventory of vehicles with redesigned models about to be released, but otherwise it isn’t as aggressive as others. It offered some lease deals in response to Toyota’s incentives, but otherwise has avoided reduced financing rates and cash-back offers.

“We’d rather flex our manufacturing than incentivize the vehicle,” Mendel said of Honda’s method to manage it inventory.

Flexibility is a Honda hallmark, but even it and its suppliers struggled with inventory balance in 2008 and 2009. Employment and work hours fluctuated in both years, most notably as sales of the Marysville-made flagship Accord stalled and cars filled up lots.

There were lessons learned, Nelson told Business First after the company’s annual supplier conference April 29. “The fast-changing environment exposed some of our weaknesses,” he said.
Honda is working to eliminate product problems prior to mass production, which means working with suppliers earlier in design and planning.

Nelson said there was attrition in Honda’s supplier ranks, but they were comparable to regular fluctuations in the supplier base. The most turnover comes at new model years, he said, when new technology and features create opportunities for new suppliers.

Source;
http://www.bizjournals.com/columbus/stories/2010/05/10/story4.html?b=1273464000%5E3317951