Honda Car Forum

TOKYO (Reuters) - Hit by dismal domestic sales and a weaker dollar,
Honda Motor reported a 17 percent drop in operating profit on Tuesday
and forecast a worse than expected year ahead after being overtaken as
Japan's second-ranked car maker.

While Honda expects the launch of high-margin cars such as the
remodeled Odyssey minivan to spur sales at home this year, analysts
said a slowdown in North American sales was a worry since the region
accounts for four-fifths of operating profit.

"JM" <jmattis@attglobal.net> wrote in message
news:de3b9c1b.0404280658.6ec56497@posting.google.c om...
> TOKYO (Reuters) - Hit by dismal domestic sales and a weaker dollar,
> Honda Motor reported a 17 percent drop in operating profit on Tuesday
> and forecast a worse than expected year ahead after being overtaken as
> Japan's second-ranked car maker.


Uh, what about the very first phrase "dismal domestic sales" ?

Toyota sells more vehicles in the US than Honda does, but you do not see
Toyota making excuses about the weak dollar, eh?

Honda is having some major strategic and execution problems these days.

Praise may make us feel good, but only well founded criticism can help us be
stronger.


John

John Horner wrote:

> "JM" <jmattis@attglobal.net> wrote in message
> news:de3b9c1b.0404280658.6ec56497@posting.google.c om...
>
>>TOKYO (Reuters) - Hit by dismal domestic sales and a weaker dollar,
>>Honda Motor reported a 17 percent drop in operating profit on Tuesday
>>and forecast a worse than expected year ahead after being overtaken as
>>Japan's second-ranked car maker.
>
>
>
> Uh, what about the very first phrase "dismal domestic sales" ?
>
> Toyota sells more vehicles in the US than Honda does, but you do not see
> Toyota making excuses about the weak dollar, eh?
>
> Honda is having some major strategic and execution problems these days.

Two model related ones come to mind:

Nothing to replace the Del Sol. Their only "fun" car is the S2000
which is nigh impossible to locate or afford.

Element. If it was a ture 4wd vehicle, it would sell like
crazy. 4*4 and all ruggedized, with a ton of options for
under $20K?

My biggest gripe, though, was the interiors. Honda has a
problem with multiple personalities. They refuse to make
decent interiors and features on their "Honda" line
because they don't want to compete with their "Accura"
line. Very ticky-tacky interiors lately. That VW can
do better shows how much they have slipped.

They also don't sell any true econobox anymore. A Civic
is *expensive* lately.

Toyota seems to have a better grasp on the situation.
The Echo is a hot seller. $10K and Toyota quality.
It's small. It's cute. It gets nearly Geo Metro mileage.
No hybrid motor or premium fuel or other nonsense. Gets
you from A to B for $10K. What's not to like?

The Matrix/Vibe is also a slick car. The Element should
have been more like this, IMO, if it wanted to sell, OR
should have gone the 4*4 route. The Element *almost*
works, but really doesn't. Sales are poor on it as a result,
which is a shame as the vehicle is good other than the
worthless AWD and too small engine.

Then there's the overlap. The Avalon was a smart move
as well - it's simmilar to a Lexus, but in a more basic
trim. They also sell a Corolla sized Lexus with all the
goodies and more power. The IS300 is a slick car.

I see very little overlap in the Honda/Accura lines.
This also hurts sales.

Not that Honda couldn't address these problems, but
I see a lot of poor planning lately.

> Nothing to replace the Del Sol. Their only "fun" car is the S2000
> which is nigh impossible to locate or afford.

Si. but its wacky and made in britain.

In article <WfTjc.16343$e4.12003@newsread2.news.pas.earthlink .net>,
josephoberlander@earthlink.net says...
> John Horner wrote:

> > Honda is having some major strategic and execution problems these days.
>
> Two model related ones come to mind:
>
> Nothing to replace the Del Sol.

You misspelled "CRX", but the lack of a suitable replacement for that
car's been a problem for more than a dozen years now. ;-)

> Their only "fun" car is the S2000
> which is nigh impossible to locate or afford.

Afford, yeah. But locate? Depends on where you're at. There's no
shortage of them at most of the dealers in my area. I'd love to have
one, but my wife needed a 4-door more than I needed an S2000, so we
bought an Accord last year and I'm still driving my '91 CRX every day
instead.

Dave

Dave Garrett wrote:

> In article <WfTjc.16343$e4.12003@newsread2.news.pas.earthlink .net>,
> josephoberlander@earthlink.net says...
>
>>John Horner wrote:
>
>
>>>Honda is having some major strategic and execution problems these days.
>>
>>Two model related ones come to mind:
>>
>>Nothing to replace the Del Sol.
>
>
> You misspelled "CRX", but the lack of a suitable replacement for that
> car's been a problem for more than a dozen years now. ;-)

Lol. I forgot about the CRX. Same problem. Small, fun,
inexpensive Hondas sell like hotcakes at IHOP. Nothing
really being offered right now. Both the CRX and Del Sol
kicked butt, btw. Highly recommended for used cars.

And, no, a re-worked Civic convertable isn't going to cut it

Yes, they make the Si, but it's not like the old hatchback Civics,
which were bargain commuter cars. $19K is la-la-land for
Civic buyers.

jmattis@attglobal.net (JM) wrote in message news:<de3b9c1b.0404280658.6ec56497@posting.google. com>...
> TOKYO (Reuters) - Hit by dismal domestic sales and a weaker dollar,
> Honda Motor reported a 17 percent drop in operating profit on Tuesday
> and forecast a worse than expected year ahead after being overtaken as
> Japan's second-ranked car maker.
>
> While Honda expects the launch of high-margin cars such as the
> remodeled Odyssey minivan to spur sales at home this year, analysts
> said a slowdown in North American sales was a worry since the region
> accounts for four-fifths of operating profit.

I completely screwed up this posting.

The info I left out:

Dismal domestic sales in JAPAN has hurt overall Honda unit sales
figures. This story is from Japan, not here.

80% of Honda's business comes from the U.S.
Because of the weak dollar, "North American sales" (measured in
dollars, not cars) has also hurt them a lot. Their unit sales are not
hurting in the U.S., only in Japan. But, they aren't making as many
Yen since the dollar doesn't buy as many Yen right now.

So, it is b.s. if anyone tells you that Honda sales are down in North
America. Actually, they are doing quite well.

If most Accords weren't made here, the weak dollar would have hurt
them even more. So, congratulate them on their foresight in building
those U.S. plants.

JM

On 29 Apr 2004 15:34:09 -0700, jmattis@attglobal.net (JM) wrote:

>jmattis@attglobal.net (JM) wrote in message news:<de3b9c1b.0404280658.6ec56497@posting.google. com>...
>> TOKYO (Reuters) - Hit by dismal domestic sales and a weaker dollar,
>> Honda Motor reported a 17 percent drop in operating profit on Tuesday
>> and forecast a worse than expected year ahead after being overtaken as
>> Japan's second-ranked car maker.
>>
>> While Honda expects the launch of high-margin cars such as the
>> remodeled Odyssey minivan to spur sales at home this year, analysts
>> said a slowdown in North American sales was a worry since the region
>> accounts for four-fifths of operating profit.
>
>I completely screwed up this posting.
>
>The info I left out:
>
>Dismal domestic sales in JAPAN has hurt overall Honda unit sales
>figures. This story is from Japan, not here.
>
>80% of Honda's business comes from the U.S.
>Because of the weak dollar, "North American sales" (measured in
>dollars, not cars) has also hurt them a lot. Their unit sales are not
>hurting in the U.S., only in Japan. But, they aren't making as many
>Yen since the dollar doesn't buy as many Yen right now.
>
>So, it is b.s. if anyone tells you that Honda sales are down in North
>America. Actually, they are doing quite well.

It was mentioned on Autoline last week (on SpeedChannel), with bar graphs
shown, that both G.M. and Ford have surpassed Honda in unit *car* sales in
the U.S.<shrug>

Rgds, George Macdonald

"Just because they're paranoid doesn't mean you're not psychotic" - Who, me??

George Macdonald <fammacd=!SPAM^nothanks@tellurian.com> spake unto the
masses in news:i5j590hpd77715op0la40fqdvf6ongcpj8@4ax.com:

> On 29 Apr 2004 15:34:09 -0700, jmattis@attglobal.net (JM) wrote:
>
>>jmattis@attglobal.net (JM) wrote in message
>>news:<de3b9c1b.0404280658.6ec56497@posting.googl e.com>...

>>
>>So, it is b.s. if anyone tells you that Honda sales are down in North
>>America. Actually, they are doing quite well.
>
> It was mentioned on Autoline last week (on SpeedChannel), with bar
> graphs shown, that both G.M. and Ford have surpassed Honda in unit
> *car* sales in the U.S.<shrug>



The difference is that GM and Ford are losing money on unit sales. Honda is
not.

Honda is currently being hurt by four things:
1) Perceived reliability problems due to auto tranny problems and cheap
interiors
2) Obsession with airbags at the expense of overall quality
3) Uninteresting and aging model lineup
4) Failure to match Toyota with new model offerings

Where's Honda's Echo? Where's Honda's Scion tC?

Honda is now even being rejected by the rice-boy crowd. The ricers do have
a very bad reputation, but at least are a source of future sales if handled
properly. Think Ford, circa 1950.

--
TeGGeR®

The Unofficial Honda FAQ
http://www3.telus.net/public/johnings/faq.html

How to find anything on the Internet or in Usenet Groups:
www.google.com
www.groups.google.com

"mike" <mikein562athotmail@hotmail.com> wrote in message news:<M3Vjc.50655$GR.7045607@attbi_s01>...
> > Nothing to replace the Del Sol. Their only "fun" car is the S2000
> > which is nigh impossible to locate or afford.
>
> Si. but its wacky and made in britain.

and it looks like a mini-minivan