Honda, the poster child for “Why Can’t Motown be More Like a Transplant?” was not immune from the U.S. auto industry’s August doldrums. While sales of the new Pilot rose 18.6 percent (11,276 units), and sales of the miserly Civic increased by 5.3 percent (30,052) units, Honda’s Fit ran out of puff. August sales sank 25.1 percent. Year-to-date, Fit sales are up 54.9 percent– indicating the run-out of the old model/anticipation for the new one. Meanwhile, the plentiful, new(ish) Accord is also struggling, down 7.9 percent, ceding the top sales spot to Camry by 991 cars. Needless to say (these days), light truck sales dragged Honda’s numbers down. CR-V sales dropped by 14.3 percent, the Odyssey took a 19.6 percent dive and the Ridgeline (the what?) was 14.4 percent off its previous pace. Even with the Pilot’s ascent, Honda’s truck sales were down a combined 10.6 percent. That’s not bad, you know, considering.
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It would seem that Honda did not manage the changeover to the 2009 model well, since all the dealers in my area are sold out of the ’08’s.
Then again, they sold every last one for at least sticker. (The last one I saw had a $1500 dealer accessory package that brought the vehicle to over $18k)
The Fit slowdown is due to the new-for-’09 model. I just drove one last week. Never drove the last one, but the new one drives very well, pretty impressive.
Too bad the local dealer refuses to sell at MSRP. Fits go for 2 grand over (2nd sticker says $3k), if you can find one. They had 1 Fit, zero Civics on the lot. Ridiculous.
Motown should have such problems.
Of course Acura’s failing. They’re pushing half-assed Hondas out of their poopy factories!!
I read somewhere (was it CNN.com) that Edmunds forecasted that Honda was to be the only one to increase sales in August. Bzzzzt. You’d think these surveys would be closer to actual… I think they were off on Ford’s drop by over 10%.
Its hard to increase sales for products (civic, fit) where inventory is 0.
The gloomy part for Honda is Pilot/Oddyssey, as that line can’t (currently) make Civics.
Also, I wonder if on the Fit, if Honda is just not focusing as much on the US as you would like. With the dollar still in the toilet, each Fit sold in the US could be worth $1K+ more to Honda if sold in Europe.
I’m surprised to see the CRV not doing as well.
I lament the previous version…MT, swing out rear door with seperate glass, more upright windows…just seemed more utiliarian than the new model.
Honda is down due to shortages of the Civic and Fit, but look at the overall numbers for the month. Honda now outsells Chrysler in the US and is within 5,000 units of Ford.
Wow. Once that factory in Indiana is pumping out Civics and Diesels, Honda will solidy its position as #3 in the US, meaning that 2 of the “big 3” are of Japanese origin.
How come when Honda and Toyota sales go down we excuse them, since their product mix and availabiity wasn’t right for the market.
Yet when Ford or GM sales go down, we condemn them, because their product mix and availability wasn’t right for the market?
If the goal of a corporation is to make money, both failed, and for similar reasons- product mix.
Go out and try to buy a Fit and see how successful you are.
Then go out and try to buy an Aveo, Cobalt, Compass, or Caliber. Not only will there be an assload of them on the lots, but the dealer will slash thousands off the price just to get you to buy one.
I never understood why people bought Honda’s and then I spent time working with, no being dictated to, by Chrysler, and now I am the happy owner of an Acura.
Thank you Chrysler!
I’ve looked into buying a Civic as not to replace a vehicle, but just as a new daily driver. Over the last month a larger dealer I go to usually has a couple on the lot, but a year ago they were all over their lot. The salesman I’ve talked to says that he can get me what I want (but didn’t say how long).
However, I use to drive a Civic and I’m struggling with the the thought of driving one again. It’s not a bad car as their well built and with the mpg to match, but just kind of boring. Especially when I drive a Jeep! My Jeep I’m planning to build it up, which won’t be a daily driver. I just wish there were more options. Can’t the Big 2.8 ever make a car that can compete against the Civic?!
If the goal of a corporation is to make money, both failed, and for similar reasons- product mix.
Take a look at the financial statements. Between Ford, Honda, Chrysler, Toyota and GM, 3 lost money and 2 made money. You can predict which ones, without looking.
Yet when Ford or GM sales go down, we condemn them, because their product mix and availability wasn’t right for the market?
Honda and Toyota’s sales dipped because of a weak market. Single-digit losses in the middle of what is, essentially if not technically, a recession are acceptable. And both still make significant profits.
Yes, the Tundra wasn’t well timed. Toyota can eat the downturn, and the new Tundra is still selling better than it’s predecessor.
Ford, GM and Chrysler’s sakes absolutely cratered, and while the downturn is certainly an enabler, the magnitude is a function of strategic failure. Losing a quarter to a third of your monthly volume is a bad thing, losing money while doing it is worse.
That’s the difference
Not sure why the comments on poor Fit availability. I just ordered one, a red Fit sport w/manual trans, and won’t have to pay over MSRP. I guess if you’re willing to wake a few weeks..
I cruised my local Honda dealer last Sunday. No Fits. No Civics except for one lone Hybrid marked up with dealer add-ons. When Indiana comes online, they’ll make a killing.
One local dealer does not make a national statistic. My local Chevy dealer was out of Cobalts. Every week during the summer I got emails from a local Honda store that announced it just got its last shipments of 08 Civics for the year. Somehow they kept coming in.
No one has disputed that both GM and Honda got the product mix and availability wrong. Instead, the shift has been to which companies are more profitable.
That is a change of subject. Because besides revenue the big component of profitability is expense. GM and Ford have a truckload of expenses in the form of labor costs, which affects their product line.
Which does not change the argument: if Toyota and Ford had more products that people wanted, and had them available, they would sell more.
But let’s not pretend that Honda’s not selling more was a mark of its success while GM’s not selling more was a clear sign of its failure. It’s the same problem- the supply chain of product did not meet the market.
I just want to take this opportunity to FLIP THE BIRD to all those who said that Honda F’d up the new Accord. Too big, too ugly, blah blah blah. Looks like Honda got it right and you got it wrong.
The Accord is running toe-to-toe with the Camry, meanwhile the Civic is beating them both. HA. In hingsight, it looks like their products are well positioned, huh?
Consider this the post audit for the non-analytical, blowhard jackasses among us.