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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]

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    • 1 Second Ago
      • 6 Years Ago
      i don't get these domestic vs foreign issue, people the world over buy american product because in many cases they are vastly superior to domestic alternatives, japanese automakers happen to make reliable and fuel efficient cars, without them high gas prices would hurt even more as people would only drive SUVs or crappy sedans
      • 6 Years Ago
      Honda develops their own parts in house.
        • 6 Years Ago
        No they don't. Nippondenso makes many subassemblies for them. My cousin used to make fuel pumps for Honda also (they lost the contract).
        • 6 Years Ago
        Heh, pretty much all auto companies source parts from various suppliers these days since it's pretty retarded to go and develop stuff that's available off the shelf.
        But I'm sure Honda develops a lot of parts in house too even if they buy stuff from the various suppliers.
        Of course, since Toyota owns so many of the Japanese suppliers they probably *could* build a car using only their own suppliers, but Toyota uses other non-affiliated suppliers all the time (like Delphi).
        Basically, whatever's most cost effective goes.
      • 6 Years Ago
      I wonder if the Japanese gov't has ever given Honda handouts of any sort.
      • 6 Years Ago
      The stock market would seem to disagree with the rosy outlook for Honda. The stock is flatlining.
      • 6 Years Ago
      It is funny to hear this same old argument about how the North American auto sector is far better than the Japanese. We should only buy North American.
      Chevy Aveo - Korean built in Korea
      Chevy Optima-Korean built in Korea

      My Altima was built in Tennessee. The Honda in Marysville Ohio. The Camry in Lafayette Indiana along side the Subaru Legacy.

      A person who works for Ford confided in me recently that suppliers were increasingly turning to cheap Chinese parts to meet the demands of the big three for price reductions. The power window motor box may say Made in America on it but should really only say, assembled in the USA. He said and I quote " There is more Chinese parts in a North American Ford than in a Honda.

      • 6 Years Ago
      Honda's been playing the straight and narrow while everyone else jumped on the huge honkin' SUV bandwagon...and now they're reaping the benefits.
        • 6 Years Ago
        To Honda's credit, because they didn't have the resources to jump into the full size market like Toyota and Nissan. It turned into something of a saving grace for them. Because if they had did what Nissan and Toyota did, the segment would have collapsed just when they were getting their vehicle in.

        I do think that Honda would have jumped into that segment but like I stated earlier they didn't have the resources to go into that part of the market. They were extremely resourceful in making the Odyssey platform flexible. They got a minivan, two SUVs and whatever you would call the Ridgeline. Instead of what Nissan and Toyota who engineered new platforms and constructed new plants just in time for them to not get a return of investment.

      • 6 Years Ago
      turtle wins the race.
      • 6 Years Ago
      I am really botherd by the remarks that Americans enjoy to make so often about other Americans and their companies. I think its time for America to throw up road blocks like Japan does to outside car companies and the imported engines and other items that are imported to complete their American made cars. I have always thought that when the day is over you at least consider purchasing American owned products first if they offer a value that merrits consideration. I think that both GM and Ford have several model that currently equal or may even exceed the extremly small line that Honda offers. I will be the first to admit that Honda is possibly the best quality automaker for their price points but the new Accord and TL got ugly and bloated. As to the food line joke I think it was of poor taste to many families that are out of work due to no fault of their own and considering the help that America offerd to Japan after the war is not warranted. I hope he is forced to work on a food line from his employer for that remark.
        • 6 Years Ago
        So at a time when American buying power is at it's lowest, you suggest erecting more barriers to trade. Thanks Sarah Palin, you the man.
      • 6 Years Ago
      Europeans do NOT make better cars than Japanese.

      If they did, it would show in sales per year.

      We still haven't seen a great increase of sales from Europe in US. Japanese automakers did. Accord reach best selling car in the early 90's. We have never seen a European vehicle even reach top 10 best sellers.

      Stop the BS!
        • 6 Years Ago
        Not to mention better performing values. I don't see anything from Europe releasing a supercar that can come even close to the GT-R's performance at that price. Even the Americans are getting close with the Z06, and the more highly priced ZR1 is faster...although we've yet to see Japan's true trump cards; GT-R V-spec and the NSX replacement.

        • 6 Years Ago
        Flashpoint, I think everyone here equates better with reliable. If you're going to try to tell people that late model Mercedes products are more reliable than Japanese cars, even the Germans are going to laugh at you.
        • 6 Years Ago
        Europeans don't make better cars than the Japanese?

        Did I hear that right?

        Are you telling me the Japanese have a better car than the CLS500/550?

        Are you telling me the Japanese have a better car than the BMW 3series?

        Are you telling me the Japanese have anything that comes close to the S550? And don't even think of the LS460 cause compared to the S550, the LS460 is playing catchup to the BMW 750 which drives better than any Japanese car they've made or will make in the next 10 years.
      • 6 Years Ago
      Hand outs normally are not given back right? whereas loans are?

      Just clarifying how those work in your country.
        • 6 Years Ago
        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.
      • 6 Years Ago
      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.
      • 6 Years Ago
      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.
        • 6 Years Ago
        Penny pinching pretty much means you probably have a lot of money in the bank and pretty much no debt...which usually equals an excellent rating since you're never missing payments, etc.
        There are still people with awful credit who buy Honda's but their average buyer definitely has better credit than say, an average Hyundai buyer.
        I'd say their average buyer probably has better credit than even Toyota buyers just because Toyota's aggressive expansion has probably made their buyer pool less discriminative.
        • 6 Years Ago
        @SPG: Penny pinching = not buying so much = not borrowing so much = not overburdened with debt = better credit rating.
        • 6 Years Ago
        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
        • 6 Years Ago
        Hondas are not the sexiest cars on the road, but they don't come with the upkeep and insurance costs German cars have. We nerdy accountant-types tend to worry about total cost of ownership.

        When was the last time you heard of a Honda owner paying $3,000 for a valve job? When was the last time you heard of a long-term Audi owner who hadn't?
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