Honda February Sales Slide 35 Percent

Honda took the industry-standard beating last month, emerging with "only" a 35.4 percent sales drop. Unsurprisingly, Honda's hot Fit kept its head above water: sales increased 2.3 percent in February. Accord and Civic were both down over 30 points. In the SUV category, only the CR-V escaped 40 percent or higher year-on-year monthly sales loss [...]
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as opposed to Subaru whose sales, at least in the USA, rose slightly.
point being that Subaru, by focusing its efforts on core products, is
able to offer exceptional value.
Honda, like other auto makers, decided it wanted to offer a wider
range of products and developed trucks and expensive cars that are now
dragging the company down. image how much better the Accord could be
if Honda hadn't wasted R&D on a $50K sedan or a lineup of $30 - $40K
trucks that now sit in inventory. I figure the Accord would offer many
of the features now available in the $35K TL.

 

I understand the only model actually making money for Honda right now is
the Fit.

However, Honda is well-placed for when the economy eventually recovers.
And, like Toyota, they have plenty of cash to help them wait this out.

 

So why is Toyota begging the Japanese goverment for money (just like
GM)?

Ed

 

I assume we are talking about the land that created the current credit
crunch/crisis/recession?

 

1) If free money might be handed out, you'd be a fool not to try and get
some for yourself, even if you don't really need it.

2) All the Japanese automakers are suffering in their home market, which is
pretty much permanently in the tank and requires constant government
intervention to exist in the first place..

 

So we trash GM for doing what Japanese car makers do all the time?
Suppose the US Govvernment protected the US market the way the
Japanese did in the past openly and still do through non-tariff means
today. Don't you think GM might be in a stronger postion then?

Ed

 

as opposed to Subaru whose sales, at least in the USA, rose slightly.
point being that Subaru, by focusing its efforts on core products, is
able to offer exceptional value.
Honda, like other auto makers, decided it wanted to offer a wider
range of products and developed trucks and expensive cars that are now
dragging the company down. image how much better the Accord could be
if Honda hadn't wasted R&D on a $50K sedan or a lineup of $30 - $40K
trucks that now sit in inventory. I figure the Accord would offer many
of the features now available in the $35K TL.

Had a new TL pass me a couple of days ago on I 75 on the way to work. I
could not help thinking how ugly the car is -- particularly from the back.
The old TL was a real winner on the other hand in my view. But, our local
Honda dealer is not desperate at all -- our local unemployment rate is
running at 6.7%, so he must be selling despite no discounts. I am looking
at a Hyundai for my daughter rather than a Fit for 16k or so.

 

Who's "we"? Have I ever trashed GM?

GM did screw itself by giving in to the union in the '80s, which is
mostly what got them into the current mess. Caterpillar, as a contrast,
never gave in to its union back then, endured a lengthy and bitter
strike (which Cat won), and is far stronger than GM today.

Nope. GM might be stronger, but we'd be weaker as a whole. Trade
protectionism does not benefit anybody except the companies that end up
with that lucrative monopoly or near monopoly. Trade protectionaism
means you end up paying more for less, subsidizing the companies that
benefit from the protectionism.

If the Jap auto companies had to rely exclusively on their own market,
they'd be entirely creatures of the state, like the former British auto
industry.

 

Pretty ballsy of GM to beg the Japanese for $$$, I'd say.

 

Tegger is closer on #1. Toyota and Honda (and others?) have asked the
Japanese government to assist by making credit available for US car
loans. It seems that the US credit market has dried up and both
companies think they could be selling more cars if buyers could get
loans. Unlike GM and Chrysler (and Ford soon?), both Honda and Toyota
can survive for a long time with the current sales level, but they
would like to do better. Also unlike the "Big 3" the Japanese
government stands an excellent chance of being paid back with
interest.

GM, etc. could be selling more cars too, but the US Banks took the
bailout money but used it to pay six and seven figure bonuses instead
of making loans. In Japan, the government may make the loans itself
using government bureaucrats who earn a modest salary. The
government, industry and the auto workers will benefit instead of
golf-playing, corporate-jet-riding parasites.

If Socialism comes to America, it won't be because of Obama. It will
be inspired by the Capitalists.

 

From what I've read Ford is still in good shape financially and doesn't
need a shot of public $$$$.

Very interesting that the Japanese car cos. are asking the Japanese govt
to finance US car buyers!

Amen to that, Gordon! Isn't that just what Marx (Karl, not Groucho)
predicted?

 

front, back - that is one fugly car.

A couple of my co-workers recently bought Toyota Corollas after
looking at competing cars (inexpensive to buy, inexpensive to keep).
They all remarked about Corolla's superior comfort factors compared
with other cars in the same price range. (I always suggest replacing
the crappy tires Toyota supplies.)
YMMV

 

I wouldn't say good shape but they have some cash reserves. But if
the market doesn't pick up soon, they will have their hand out.

I don't think the other markets have as much of a cash crunch. In any
event, I haven't heard that the Japanese government is jumping up to
do this.

Not to mention Hugo Chavez.

 

Among shoppers who value long-term reliability, the ones more
interested in creature comforts buy Toyotas. The ones who like to
drive buy Hondas.