We don't need no stinking handouts: Honda doing well in downturn
While most automakers have been struggling to sale their wares in the struggling US auto market, Honda has held its own -- and then some. Honda's robust selection of high volume cars has led to a 1.2% sales increase in a market that is down a disastrous 11%, and Honda expects things to continue next year, with new models like the redesigned Fit adding to already strong sales. Industry-wide, though, Honda doesn't expect a good 2009.Honda, much like Toyota, sees more of the same sullied sales for the rest of this year and next, predicting 2009 sales at a dismal 13.5-14 million units industry-wide due to financial struggles in the banking sector. Honda sales VP John Mendel doesn't think credit issues will affect the Japanese automaker, due to the typical Honda customer's better than average credit. Mendel says he has no problem with the $25 billion in loans sought by US automakers, but he would like to see some of the money go to the hundreds of suppliers that are also struggling to survive. He was quick to point out that Honda didn't need any outside help, and he even went as far as to equate the loan with "getting in a bread line." That won't win him many friends in Detroit, but then again, Honda doesn't have or need many allies in Motown anyway.
[Source: Automotive News - sub. req'd]
Reader Comments (Page 1 of 3)
psu48187 8:24PM (9/18/2008)
Honda's small car and fuel efficient engine strategy has paid off for the manufacturer, and the company has been very smart with regards to those two key elements. I have a lot of respect for Honda, as they have stayed true to their roots all along.
Acura on the other hand is a dead man walking....
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Don 7:47PM (9/18/2008)
Why are Americans so in love with Japanese cars when GM produces cars that are just as good or better? The Japanese are no innovators, we all know that. All they do is steal our designs and make them better. Now, that GM is fully awake, we will see who will the technological leaders but still expect them to steal our designs.
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SPG 7:55PM (9/18/2008)
You wrote:
"Why are Americans so in love with Japanese cars "
You also wrote:
"All they do is steal our designs and make them better."
If you believe that then you need not question this "love affair".
halogenrep 7:56PM (9/18/2008)
You answered your own question with "All they do is steal our designs and make them better." Japanese cars are better and some European cars are even better.
luiscor82 7:59PM (9/18/2008)
Don, only time will actually tell if these new american cars are just as good as some japanese cars. Reliability is something that is earned over time, not judged by inital quality. People buy civics instead of colbalts because they know that these cars have proven themsleves, honda and toyota have reused so many engines for years and years that a car buyer has nothing to be afraid of. Can that really be said of American cars? Reliabilty concerns will take years to prove, but i will admit that some of the american companies have begun to take this serriously recently. Time will change peoples minds.
Say What? 8:05PM (9/18/2008)
"The Japanese are no innovators, we all know that. All they do is steal our designs and make them better."
I'm not necessarily a fan of Asian or European automakers, but isn't the concept of taking an idea and improving on it known as "building a better mousetrap?"
hans 8:09PM (9/18/2008)
are you an idiot?
improving an existing design IS innovating.
exactly what american car is the honda fit even like?
Are you somehow arguing that a chevy aveo or something is just a less improved version of a fit. So somehow we cant buy a japanese car since the aveo uh sucks and wasn't like a fit to begin with.
I mean if this improving an existing design was so easy, shouldn't the american companies just be improving the japanese designs? If they were you know competitive?
tankd0g 8:23PM (9/18/2008)
Fully awake. Heh. Did you see Lutz on Colbert the other night? Partially comatose. Did anyone even brief him on what the Volt team is up to these days?
reddy 11:00PM (9/18/2008)
are you insane? Ford themself now advertise saying the quality now match almost toyota.
Doesn't that mean all American companies were making hay when the sun shone making fool of us Americans by selling lower quality and less reliable cars? I really don't feel bad for the state of GM
Ken Stamper 6:09AM (9/19/2008)
I hate to pile on, but in 1974 Honda was making such an insanely efficient and reliable engine for the Civic that they didn't even need a catalytic converter to pass emission standards. Meanwhile, GM was paying out millions of $$$ in warranty claims over rusting, oil-leaking Vegas.
Saying Honda is copying GM... I'm trying to think of a good analogy but until then... good god man, are you ignorant.
Mikeeeee 8:00AM (9/19/2008)
Let me tell you a story. I have a 4 cyl. Malibu. My friend has a 4 cyl. Accord. Both 2008's
I get 22.3 city mpg. He is getting 17.9 city mpg.
Don't think he has any good comments for Honda.
I tried to tell him, BUT
Nick 8:03AM (9/19/2008)
Don,
A lot of people have been buying Japanese cars because they have been burned too many times in the past by American cars. We had an 88 Chevy Corsica and a 95 Ford Taurus and while the Chevy was a bit more reliable it still needed a $1200 ECU at 40k miles, and numerous other problems. The Taurus was even worse. At one time the car was in the shop for 2 weeks. When I got to drive my friends 91 Accord I was hooked on it. The car only needed the routine maintenance and had no breakdowns. My father was a “buy American” kind of guy. Once I bought my 95 Accord and how reliable it has been, that's all he wants now.
If the Malibu and Fusion are as reliable as a Camry, Accord 10 years from now, more people will look into buying them. Until they last this long with very few problems I won't be looking at them.
knifetramp 8:51AM (9/19/2008)
Typical self-serving remarks by a Japanese auto maker, who thanks to a closed market in Japan, can sell cars for 40%-50% more than they can get in America. I call that a MAJOR SUBSIDY and unfair trade practice. The Japanese government and Japanese industry work together to achieve these very goals... well done, wouldn't you say?
Thank you Honda, you are as arrogant as Toyota and I hate you both.
Takeo 9:22AM (9/19/2008)
"making something better" Is the very definition of innovation. Glad continuous improvement is a way of life for you Don.
Frank 7:47PM (9/18/2008)
turtle wins the race.
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Flashpoint 7:50PM (9/18/2008)
Honda has probably sold a gazillion Accords and a quagillion Civics throughout America cause thats all I see nowadays.
The Honda accord 2008 and the coupe model are the first car that I've ever seen literally FLOOD the market within the first month of release.
And its not a bad car. Its a very basic sedan with an average technology suite and a low cost loaded V6 model -when compared to most other makers.
And the Civics are nicer than the Focus and more economical.
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tricky dicky 7:56PM (9/18/2008)
Hand outs normally are not given back right? whereas loans are?
Just clarifying how those work in your country.
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No Welfare for GM 8:01PM (9/18/2008)
Ok, i will counter that with
Loans are given at market interest rate, not SUB market interest rate to companies who have junk credit rating.
SPG 7:59PM (9/18/2008)
Honda buyers have better then average credit?
I always thought of Honda buyers as frumpy penny pinchers and I guess that will only increase my perception of the average Honda buyer.
Not that I don't like Honda, I would happily own a few of their products from both past and present.
I would also love to see the CL return.
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Darrell 10:19PM (9/18/2008)
Trust me, those career penny pinchers have the best credit out there. ask my dad, his credit is awesome and he's a (wait for it) 3-time Honda owner