Auto Knight » Honda

Toyota And Honda Massively Cut Output

Darren — Tue, 24 Mar 2009 19:53:53 +0000

In news that should come as no surprise to anyone, Honda and Toyota have both announced that the global financial crisis has put a big dent in their sales figures, causing them to cut output. Toyota announced that their global output has now hit the lowest level in 23 years. Toyota produced 358,573 vehicles, a 53 percent decline from last year.

Honda fared no better than Toyota. The announced last month sales of 190,680 vehicles. That’s a decline of 43 percent from 2008.

Tighter credit is cutting demand and it’s being felt by Japan’s two largest auto manufacturers, as it is by car companies worldwide. Consumers aren’t getting approved for auto loans like they used to in the past, and they don’t have the money to buy cars using lump sum payments.

Both Toyota and Honda have announced a more aggressive entry into the hybrid vehicles, one segment that still appears to be growing. But that’s no guarantee of success.

Honda tamped down production by 48% last month due to the decline in sales revenue.

Toyota reduced its domestic production by 63% last month. They’re expecting to announce their worst operating loss in company history.

Toyota Prius Price May Be Lowered To Compete With Honda Insight

Darren — Thu, 12 Mar 2009 15:10:56 +0000

The price was between Toyota and Honda on their hybrid models the Prius and Insight might be getting underway.

According to an article in Asahi Shimbun, Toyota plans on releasing a cheaper Prius in late 2009. They know they have to compete with the Insight, and plan on doing so by reducing the sticker price.

Honda said the Honda Insight hybrid vehicle is flying off the shelves. Orders are three times higher than their initial sales forecasts.

In Japan, the Honda Insight was 10th in sales for February while the Prius finished two places lower in 12th.

Honda recently announced the base price of the Honda Insight would start at $19,800. Prius currently stars at around $22,000.

Expect word of the lower prices on the Prius sometime in June 2009.

Honda Lowers Forecast

Darren — Fri, 30 Jan 2009 10:29:55 +0000

Honda has been in the habit of lowering their forecasts lately, and the company has announced they’ll be doing it again. For the fourth time already this year, Honda is predicting lower profits.

Honda, Japan’s second largest auto manufacturer after Toyota, said it now expected a net profit of 80 billion yen for the year ending March 31, rather than the 185 billion yen it had forecast as recently as December. Operating profits are now seen totaling 140 billion yen, rather than 180 billion yen. For the third quarter of the business year — October-December — Honda reported a 90 percent plunge in net profits to 20.2 billion, well below the 32 billion that analysts had expected. Honda shares fell 9.2 percent Friday.
With the economies of most of the world’s economies in the dumper, such results are becoming common place. In particular, worsening conditions in the Japanese auto market have kept sales down.

The current global downturn has hurt sales at all auto makers, even the ones who have traditionally built fuel efficient cars. Since less people are getting approved for credit, less people are buying cars.

Honda Loses Money

Darren — Wed, 17 Dec 2008 13:10:29 +0000

Honda joins the list of automakers who aren’t making any money in the current environment. The loss is the first such operating loss experienced by the company in 11 years.

Honda Motor (nyse: HMC – news – people ) looks on course to post an operating loss in the second half to the tune of at least 120.0 billion yen ($1.4 billion), on the severe demand slump and surge in the value of the yen. This would be the company’s first half-year operating loss in over a decade. Japanese automakers are scrutinizing all their pipeline investments for possible delays or cancellation, slashing output and jobs, and looking to wrangle price cuts from steelmakers and other suppliers.

The company also stated they don’t see a recovery coming any time soon.

The major forces driving sentiment down for Honda is the same thing being experienced by all major auto makers: declines in the huge US and European markets.

Honda Begins Producing Civics In Indiana

Darren — Sat, 11 Oct 2008 13:51:03 +0000

Honda has begun mass production of Honda Civics. Honda is producing new, fuel-efficient, 4-cylinder Honda Civic sedans at their new facility in Greensburg, Indiana. The facility, which cost $550 million to build, will ultimately produce 200,000 vehicles, and employ 2,000 associates at full capacity. The project has been a boom to local autoworkers.

“With continued high demand for the Honda Civic, we are honored and excited to help meet the needs of our customers in North America,” said Yuzo Uenohara, president of Honda Manufacturing of Indiana (HMIN). “Our new Indiana associates are dedicated to building the very best Honda products, with customer satisfaction as our top goal.”

Honda announced building the plant in 2006.

“We’ve reached this milestone thanks to great cooperation and support from Indiana’s state and local leaders,” said Rick Schostek, vice president of HMIN. “It was a team effort with INDOT, the Department of Workforce Development, the Indiana Department of Economic Development, Decatur County, the City of Greensburg and many others making important contributions to our successful startup.”