Honda’s press release puts the number at 28.4 percent, but that’s using Daily Selling Rate nonsense. In simple terms, Honda sold 25.2 percent fewer units in calendar October 2008 than in the same period last year; which puts them in the same boat as Toyota. Only two models showed sales upsides: the Honda Fit and Acura TL. The Fit has been capacity constrained forever and is still a relatively modest player at 6,478 units for the month. The TL is likewise a niche vehicle which jumped from 3,421 units last year to 4,340 this October thanks to the all new 2009 TL. But, Acura has two disaster products on it’s hands; the forever poor-selling RL range topper and the near luxury mini-ute RDX. RDX sales collapsed from last year’s already low 1,937 to an abysmal 647 units. Back over at the Honda brand, one surprise in the numbers is the collapse of Accord sales, down from 30,936 to only 19,783, a 36 percent drop in Honda’s #1 selling product. The Odyssey, Element and MDX also all posted larger than average declines. However, for some reason the Ridgeline’s fall was a little less than the average falloff. Cash on the hood effect? Year to date, Honda is still up slightly over 2007, but that record seems likely to fall over these next two months. During the first half of 2008 Honda seemed to be playing in a different ballpark than the rest of the US auto business. But from summer on they have regressed to the mean. But hey, there is one fun-fact buried in the numbers: Honda took sales credit for one unit of the FCX Clarity hydrogen fuel cell vehicle. I wonder who the lucky customer is?
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RDX sales collapsed from last year’s already low 1,937 to an abysmal 647 units.
Really? Then they must ALL be in my neighborhood….I counted 7 of them dropping kids at school this morning, one more than Volvos XC90s….
I wonder who the lucky customer is?
I thought that was Jamie Curtis.
I almost bought Honda stock in Oct at around $20/sh, down from a recent high of near $40. Figured eventually, most of the large vehicles of today will be replaced with smaller, thoughtful vehicles and Honda should be king of that market. Less domestic competition couldn’t hurt either. Since then, it’s bounced back to $25- the market apparently unphased by Honda’s sales slump. Any predictions on Honda’s financial future?
John
“one surprise in the numbers is the collapse of Accord sales”
Could it be that Honda went over the top when they super-sized the Accord? That thing is HUGE.
But I am suprised that Civic sales are down. This is an outstanding car. Perhaps if they introduced a wagon version, people wanting a little cargo space would not all be funneled into the supply limited Fit.
I’m surprised about the RDX figures. I was, until I noticed that the RDX gets only 17/22 MPG (manufacturing website.) The CR-V is 20/27 losing only 7% over last October.
The Accord is not only too big, but Honda went too far with its “postmodern” styling. Seems like Honda is in a race with Toyota to come up with the weirdest styling direction. Mr. Bangle would be proud.
Conspiracy theory No. 24: Have the auto industry’s design shops been taken over by space aliens trying too hard to act human? Does Toyota’s “third eye” grille have a nefarious purpose?
Honda was always screwed by US, American Consumer on hatchbacks and wagons (Accord, Civic wagons and hatchbacks). It did well with sedans, ergo we get sedans. Then came SUV fad and CR-V sold OK. I think Accord and Civic are not selling for couple of reasons and neither of them have to do with size or looks of the car. In a credit crunch, when leasing is not an option for lower tax bracket, people will have to purchase. They can afford (for bank comfort) lower cost cars. That does not explain CR-V sales, since it is priced same as Accord. Perhaps with SUV/CUV drop in popularity this is the only option available (inexpensive, roomy for family and stuff and fuel efficient).
I would not rush to acquire any automotive stock, until economy has solid signs of improvement.
I recently bought an ’09 Civic LX Coupe. I didn’t buy it due to being in a lower tax bracket as I’m not… but as a daily driver as you can’t beat it’s excellent build quality and it’s mpg, all for under 18k. Plus being a five-speed it’s a zippy car!
It took five weeks for it to arrive, probably due to the change over from the ’08 to ’09 model which had some minor updates.
Great car!
Agree that Honda is missing the boat by not providing a Civic and/or Accord wagon. No doubt that it might steal sales from their CRV but it would also steal many sales from other MFRs. Honda should also consider bringing the Stream mini-minivan/psuedo wagon to the states.
Wagons should make a comeback as they can be very cost effective and efficient. You see very cool wagons all over Europe. Wish we had more of them available here in the states! Wagon options are very, very limited in the USA.
I’m thinking they’re not selling because of the $2000-$4000 second stickers I’m seeing on Civics and Accords. At least in Seattle. Nice intimidation tactic from the delaer I guess, but way to insult the buyer.
Across the street Toyota has 0% financing and a little rebate. Of course Toyota isn’t selling much either.
schadenfred :
November 4th, 2008 at 12:13 pm
I’m thinking they’re not selling because of the $2000-$4000 second stickers I’m seeing on Civics and Accords. At least in Seattle.
Yikes! No second sticker in my area. They were just not willing to work much from MSRP.
From my experience in 2001 when I bought my Accord, you have to have PERFECT credit to buy a Toyota or Honda. Somehow they pulled some strings for me and I wish they hadn’t. My original rate was 14.5%, then refinanced (in 2004, in the middle of the credit bonanza) to 8.5%. I am still paying off deferral and late charges. My bad.
RDX is smaller, weaker, more cramped, more expensive, less fuel efficient than the big ass GM SUVs and Lambda things.
GM > Acura
I guess even Honda isn’t immune to the ‘recession’. Fortunately Honda is probably the automaker most capable of adapting to current trends.
As far as civics go – at least in Canada it has a huge following. Best selling car here for the last decade.
There is something to the idea that the Accord is losing market share. Toyota reported Camry sales only down a few percent.
http://www.marketwatch.com/news/story/Toyota-Reports-October-Sales/story.aspx?guid=%7BD37C622A-BD27-4493-8FB5-D847417C81A3%7D
It frosts me that while the TSX wagon is offered everywhere else in the world, albeit as an Accord Wagon, Honda USA will not even bother importing them. The additional certification costs should be minimal. The RDX, on the other hand, is based on the Civic/CR-V platform but I’m pretty sure has all custom sheet metal and is only sold in North America. It seems to me that it would have been 10x cheaper to bring in the TSX wagon then it was to do the RDX, and I bet TSX wagons would sell at least what the RDX is doing.
The additional certification costs should be minimal. The RDX, on the other hand, is based on the Civic/CR-V platform but I’m pretty sure has all custom sheet metal and is only sold in North America
The thing is, the RDX is based on a cheaper platform, yet can be sold at a higher margin. A TSX or Accord wagon could sell for, at most, a grand over the sedan before consumers balked. You’ll note that BMW packages their wagons with AWD and mid-trim engines in order to pad the margins and protect the X3. Honda is doing the same.
Wagons will not return until fuel economy requirements make the naked margin grab that is the crossover/trucklet market impossible. Gax taxes, or perhaps a tax based on GVWR, might be a good start.