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Honda CEO Ito stepping down after quality control issues

TOKYO — Honda Motor’s chief executive, Takanobu Ito, will step down in late June after six years in the top post and be succeeded by Takahiro Hachigo, a low-profile engineer with global experience, the company said in a surprise announcement on Monday.

Honda, Japan’s No. 3 automaker, behind Toyota and Nissan, has hit a rough patch during the past year with quality problems that have led to multiple recalls of its popular Fit hybrid subcompact, which Mr. Ito said this month could have been caused at least in part by an aggressive sales target.

Such self-inflicted setbacks were compounded by multimillion-vehicle recalls to replace airbag inflators made by a top supplier, Takata, that have so far been linked to six deaths, all in Hondas.

For the past three years, Mr. Ito, 61, a feisty former supercar engineer, has shaken up Honda’s tightly knit supply chain as the automaker has sought to trim costs and find more cutting-edge technology.

“I think this move is an attempt by Honda to tread a different course, with someone who upholds harmony,” said Takaki Nakanishi, an auto analyst and chief executive of Nakanishi Research Institute.

Mr. Hachigo, who worked on the popular Odyssey minivan and CR-V crossover, will skip several ranks when he becomes chief executive after Honda’s annual shareholders’ meeting, set in late June. He joined the company in 1982 and has worked in the United States, Britain and China. He is vice president of Honda’s research and development arm in China.

Mr. Ito became Honda’s chief in 2009 as the auto industry was licking its wounds from the global financial crisis. The ensuing years were no easier, as a disappointing introduction of a Civic model caused many to question whether Honda had lost its edge. Natural disasters in Japan and Thailand hurt production and profits.

Mr. Ito will remain on the board and become an adviser to Honda.

Toronto Auto Show Round-up: Top things to see and do

The Canadian International AutoShow (CIAS) in Toronto is by far the largest auto show in Canada. In fact, it's the largest consumer show of any kind in Canada. We're talking 500,000 square feet between the North and South building, 125 exhibitors and over 300,000 visitors to see the latest and greatest offered by the various automakers. It's a big attraction to say the least that runs from February 13-22.

The day before the event on February 12, I had the chance to attend the media festivities that highlight the special vehicles that are making its Canadian debut amongst the other 1,000 new cars. Furthermore, the CIAS has some special display rooms that seem to provide something for everyone: Auto Exotica, Art and the Automobile, as well as a host of collector and concept cars. 

To kick-off the start of media day, the Automobile Journalists Association of Canada (AJAC) announced its 2015 winners for Canadian Car and Utility Vehicles of the Year. The Ford F-150 took top honours for Utility vehicle besting the Subaru Outback and Porsche Macan S. It was the first time since 2004 that the F-150 won AJAC's prestigious award. For Car of the Year, it was the Subaru Legacy that beat out three other worthy opponents that included the Volkswagen Golf, Hyundai Genesis and the Mercedes-Benz C300 4Matic. This was the first time that Subaru had won a vehicle of the year for one of its sedans.

Once the awards were distributed it was off to see some of the other star attractions. Ford opened the event with a bang showing off its triple threat: the GT supercar, F-150 Raptor and the Mustang GT350R. Those three exciting vehicles are all part of Ford's new Performance division that is expected to have 12 new performance vehicles introduced by 2020. It's a division that will merge ideas from Ford's racing program with its sports-tuned lineup.

If sports cars are your type of thing, you can't miss the all-new second-generation 2016 Acura NSX. Its arrival has been a long-time coming with years of concepts and teases along the way. Finally the wait is over and Acura has created the hybrid supercar we've long drooled over. It cannot be missed as you walk around the auto show, sitting elevated on a turning circle closed off from touching and in racing red. The NSX is powered by a twin-turbo V6 that has three electric motors (two in the front and one around the gear shift) for a total output of over 550 hp.



The Ford F-150 Raptor isn't the only truck that's getting attention, as it seems that many automakers have been jumping at the chance to redesign their haulers to gain a more substantial market share. One of those companies is Nissan, who unveiled the all-new 2016 Titan XD. Nissan believes that the Titan slots in between a heavy-duty and light-truck to capitalize on consumers who wanted something in-between. Nissan made a bold, but exciting choice by going with the diesel-powered Cummins 5.0-litre V8 engine that produces 310 hp and a whopping 555 lb.-ft. of torque.



Toyota is another automaker that wants to keep its dominance in the small, but growing mid-size pickup segment. The Japanese-brand made sure to update the technologies inside the truck, as well as creating a more bold and aggressive physical appearance. Consumers will have the choice of either a 2.7-litre five-cylinder engine or the new 3.5-litre V6 with direct injection.

Other highlights would include the Chevrolet Bolt Concept, which is a futuristic evolution of its current plug-in hybrid electric offering – the Volt. A version based on the Bolt concept has been confirmed for production with the hope that its electric range will extend to 320 kilometres. On the flip side, Hyundai showed off its Tucson Fuel Cell Electric vehicle (FCEV) that is the first hydrogen-run vehicle sold in Canada. It's already in production and at the dealership level, but unfortunately, it's only available in the greater Vancouver area due to the scarcity of hydrogen infrastructure in other parts of the country. The Tucson FCEV takes less than five minutes to fill-up and can travel an estimated 426 kms on a full tank.

I've only highlighted a few of the vehicles at the CIAS, and like I mentioned previously, there are over 1,000 new vehicles to see. Tickets are only $23 for adults, $16 for youths and $7 for children between the ages of 7-12. There are plenty of activities for the kids including an X-Box Gaming Area that can keep them busy in between walks from the North and South building.

Subaru Legacy awarded AJAC's 2015 Car of the Year

In an early morning press conference at the opening of the Canadian International Auto Show in Toronto, the Subaru Legacy claimed top honours when the car was declared the 2015 Canadian Car of the Year (CCOTY) by the Automobile Journalists Association of Canada (AJAC).

The Subaru Legacy also won its class as the “Best New Family Car under $30,000”.

“Subaru had an outstanding year in 2014,” said Shiro Ohta, chairman, president and CEO of Subaru Canada, Inc. “In the past year, Subaru sold a record number of vehicles and celebrated a new milestone in company history with unprecedented sales success. This award from AJAC is a wonderful tribute to our recent achievements.”



Fifteen “Best New” category winners were eligible for the top honours after being announced on December 2, 2014.  Subaru was a double winners as were Hyundai, Mercedes-Benz, and Porsche. Other category winners were BMW, Ford, Honda, Kia, Toyota, Volkswagen and Volvo. The fifteen “Best New” categories cover the full new-model spectrum, including “Best New Small Car,” “Best New Luxury Car,” and “Best New SUV/CUV.”   Most mainstream categories are further divided by price, such as over or under $35,000, to better provide fair and relevant comparison.  

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Ford F-150 wins Utility Vehicle of the Year

In an early morning press conference at the opening of the Canadian International Auto Show in Toronto, the Ford F-150 claimed top honours when the car was declared the 2015 Canadian Truck of the Year by the Automobile Journalists Association of Canada (AJAC).

This is the second time that the F-150 has earned the overall Canadian Truck of the Year title having previously won in 2004.   It is the fourth time for the Ford Motor Company to claim overall top honours having also won in 2011 (Ford Edge), 2009 (Ford Flex), 2004 (F-150).

“We are honoured that the 2015 F-150 has been named AJAC’s 2015 Truck of the Year,” said Dianne Craig, president and CEO, Ford of Canada. “Our game-changing use of aluminum alloy is raising the competitive bar for pick-ups and we are humbled to be considered an innovator in the industry, committed to providing our customers the most capable and fuel efficient pick-up ever.”



Fifteen “Best New” category winners were eligible for the top honours after being announced on December 2, 2014.  Hyundai, Mercedes-Benz, Porsche and Subaru were all double winners.   Other category winners were BMW, Ford, Honda, Kia, Toyota, Volkswagen and Volvo. The fifteen “Best New” categories cover the full new-model spectrum, including “Best New Small Car,” “Best New Luxury Car,” and “Best New SUV/CUV.”   Most mainstream categories are further divided by price, such as over or under $35,000, to better provide fair and relevant comparison. 

The category winners represent the vote results by the largest group of Canada’s best-known automotive journalists, who gathered this October in Niagara Falls, Ontario for a five-day test-drive evaluation of brand-new or significantly changed vehicle models. The event, known as “TestFest,” was hosted by the Niagara Parks Commission, and Shell Canada is the official fuel supplier.  The accounting firm KPMG tabulates all vote results.

"TestFest is the most intensive new vehicle evaluation process on the planet,” said CCOTY Co-Chair, Gary Grant.  “No other organization employs such stringent testing methods to determine their car of year award winners. Data driven and Canadian expertise:  that’s what makes an AJAC winner.”

The rigorous testing program includes "real world" driving on public roads – exactly where consumers drive - so that the test data and vote results are directly relevant to potential car and truck buyers.    The results are not based on the personal opinion of just one or two journalists.   Instead, the 73 automotive journalists each drove a vehicle in 15 categories back-to-back on the same day, under the same conditions, to ensure fair and objective comparisons.

“Our program is absolutely testing-based,” explains CCOTY Co-Chair Justin Pritchard. “We’ve got dozens of experienced vehicle testers driving dozens of vehicles, back to back, over the course of several days. This testing process generated 1,640 test drives producing approximately 106,405 data points and 500 category ballots.  It’s important to note that every aspect of this testing data is shared online via our web site so that shoppers can see how a given vehicle won its category, or how it stacked up to the category winner.”

 

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CAA reports: texting while driving still a major problem

Almost all Canadians agree that texting while driving is unacceptable, but they’re still doing it in significant numbers, according to new poll results from the Canadian Automobile Association (CAA).

The poll found that 90% of Canadians say texting while driving is socially unacceptable.

“We still need to close that gap between belief and behaviour,” says Jeff Walker, CAA vice president of public affairs. “But we are on the right track”.

Texting while driving emerged as a concern just a few years ago. It is now illegal in all provinces but, as with other road safety issues such as seatbelt usage and drinking and driving, laws are only part of the equation.

“The next step is to make texting and driving as socially unacceptable as drinking and driving,” Walker says. “CAA will continue to do our part along with other road safety advocates so Canadians actually stop doing it.”

In the same poll, Canadians say they observed an average of six people texting while driving within the last month. Additionally, 22 per cent of Canadians admitted to reading or sending a text message while driving recently.



The three most common reasons people cite for texting and driving are connecting with family, urgent personal matters and work, according to the poll.

CAA also asked Canadians to rank their top 10 road safety concerns. The poll found they are, in order: texting or emailing while driving; drinking and driving; drivers running red lights; speeding on residential streets; driving aggressively; sleepy drivers; driving after using illegal drugs; talking on cell phones while driving; driving well over the speed limit; and talking to or engaging with their in-car systems.

The results are based on a poll of 1,252 Canadians. A probability sample of the same size would yield a margin of error of +/-2.8%, 19 times out of 20.

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Nissan shows off 2016 Maxima in Super Bowl spot

Over the past years, Nissan has had a vital commercial spot during the airing of the Super Bowl in Canada, but it costs a little more to do that same thing in the United States ($4.5-million to be exact for one spot on NBC). After an 18-year hiatus from the Super Bowl stage in the United States, Nissan was back in the game with a 90-second spot called “With Dad.”

It features a dad who spends a lot of his time away from his family, as he races professionally with a Nissan GT-R LM Nismo. Throughout the years, his wife and son, have to watch him race on television, nervously hoping for a victory, but ultimately cheering for his safety.

The commercial is action-packed with many races that resemble the FIA World Endurance Championship. Coincidentally, Nissan is hoping for that same GT-R LM Nismo to realistically succeed in the top LMP1 class next year, especially during the 24 hours of Le Mans.



As the commercial shifts to the home front, the father has come back from his latest race and goes to pick up his son from school. This is where we see the first sighting of the all-new 2016 Nissan Maxima. The father pulls up in the sleek looking Maxima that finally appears to be a reliable and safe choice for dad.

The Maxima is only shown for less than 10 seconds, but it sure looks like the Sport Sedan Concept revealed one year ago at the North American International Auto Show in Detroit.

It's a heartfelt commercial by Nissan that showcases two completely different vehicles to millions of viewers. And if you're going to spend $4.5-million on a commercial, you might as well utilize that money to show something that many have been waiting for.

Hyundai launches new brand positioning campaign

Today, as part of a comprehensive strategy to continue elevating the Hyundai brand to a more premium position, Hyundai Auto Canada Corp. is launching a bold new advertising campaign called “The H Factor”. Using the electrifying, critically acclaimed hit song “Radioactive” by Imagine Dragons, the dramatic 60 second TV commercial takes the viewer on a journey from the inception of Hyundai’s award winning design, to advanced engineering, specialized manufacturing, durability testing, and culminating in a world class driving experience that will surprise customers in, as the song’s lyrics put it, “a new age”. It ends with a shot of the company’s long-time spokesperson in Quebec, Guillaume Lemay-Thivierge, who exits a premium Genesis sedan with a smile.

“A new Hyundai is emerging,” said Don Romano, President and CEO, Hyundai Auto Canada Corp. “We will be relentless telling our story in unique and captivating ways. After years of developing award-winning, convention-shattering vehicles, we believe the new ‘H-Factor’ campaign will begin to give Hyundai the recognition it has long deserved.”

According to Romano, the H-Factor campaign is part of a four-pronged strategy to elevate the Hyundai brand in the eyes of Canadians. He said: “The first step in our brand development plan was to successfully launch the all-new Genesis and Sonata, both of which received high-profile category awards from AJAC [Automobile Journalists Association of Canada]. We also wanted to ensure world-class vehicles were housed in world-class facilities, so Hyundai launched a global image standards program to elevate dealership facilities with a more premium look. At the same time, we began a new training and certification initiative called ‘Hyundai Signature Certification’ that will establish an environment where dealers continually strive to exceed customer expectations at every touch point. The final step was to launch a new brand campaign to ensure all of this work doesn’t go unnoticed.”



The campaign begins with a 60-second commercial that was launched on the company’s YouTube channel this week and will air during halftime of the Canadian broadcast of the big football game on February 1. Complementing the video posting online is a posting to the company’s blog which further explains the H-Factor positioning.

The advertising frames the company’s unique place in the market by defining its global “Modern Premium” brand positioning for Canadians. The term “H-Factor” is used as a creative expression of the company’s drive to deliver customer experiences that exceed expectations. This is achieved through vehicle design, advanced engineering, delivering award-winning quality, and developing cutting-edge safety and convenience systems. It also extends to the dealership environment and the sales and service experience.

“That smile that Guillaume displays is the natural human response Hyundai is striving to achieve by implementing H-Factor across all levels of our business,” concluded Romano.

Following the initial launch on the Big Game, the TV commercial will air in both 60-second and 30-second variations on the Canadian broadcast of the Grammy Awards show, the Academy Awards show, and run on prime time television. It will be complemented with an online campaign and will begin influencing the company’s print advertising creative.

The creative, development, and media buying of the campaign was managed by the company’s agency of record, Innocean Worldwide Canada.

Toyota bumping up Mirai production

Toyota City, Japan - Toyota Motor Corporation today announced that it will increase production of the "Mirai" fuel cell sedan, which launched in Japan on December 15, 2014. The new plan calls for production to increase from the 2015 level of 700 units to approximately 2,000 units in 2016 and approximately 3,000 units in 2017.

Considering the approximately 1,500 orders received in the first month of sales in Japan, and the upcoming launches in Europe and the United States later this year, it was decided that the supply structure should be adjusted to reflect the level of demand for the vehicle.

Sales plans for Japan, the U.S. and Europe following the production increases will be formulated taking into consideration each region's level of hydrogen infrastructure development, energy policies, car-purchasing subsidies, consumer demand, environmental regulations, and other factors.

Video from NAIAS of the 2017 Ford F-150 Raptor

Here's a closer live look at the all-new 2017 Ford F-150 Raptor truck that was recently revealed at the 2015 North American International Auto Show in Detroit.

The Ford F-150 Raptor gets the same high-strength, military-grade aluminum alloy body frame as the new F-150. It sits six-inches wider and will have a new 3.5-litre EcoBoost engine that's mated to an all-new 10-speed transmission. According to Ford, the new EcoBoost engine will produce more power than the outgoing 6.2-litre V8.

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