Honda is the Chinese version of Rodney Dangerfield. No respect. After a series of strikes, first at Honda’s parts suppliers, then at Honda itself, things looked liked they are calming down. Until yesterday. (Read More…)

Reuters reports that Honda has canceled plans to build a new minicar and diesel engine plant north of Tokyo, as the company focuses its product offerings ahead of worldwide emissions standards ramp-ups. Honda’s move away from diesel has been slowly building for years, and the strategy was all but confirmed by the cancellation of a US-market Acura TSX diesel, which was replaced by the V6 TSX. Instead of developing new oil-burners, Honda is focusing on a new hybrid drivetrain capable of powering its larger vehicles. Thus far Honda has kept a conservative approach to hybrids, refining its “mild hybrid” IMA system over several generations. As Honda seeks to improve its fleetwide emissions, this new system (which could be Honda’s first “full hybrid”) has taken on new importance. Honda will officially announce its medium-range plans next Tuesday… and don’t be surprised if it involves a new full hybrid system capable of going toe-to-toe with Toyota’s Synergy Drive.

Honda may not have suffered from a recall crisis the way Toyota did earlier this year, but its sales are equally flaccid this month, increasing only six percent in a month when the market grew by double digits. Because it doesn’t have a convenient excuse for this weakness, one is forced to conclude that its products simply aren’t resonating with consumers. Accord grew by less than 12 percent, despite including sales of the brand-new Crosstour CUV, which means the sedan has gone soft as the new “wagon” sold 1,848 units. Insight continues to flounder, failing once again to crack 2k units, and the ZDX appears to be just the latest unpopular product for Acura, selling only 265 units last month. Without solid growth from reliably popular products like Civic (+26.3%, 26,474 units), CR-V (+17%, 16,041 units), MDX (+63.8%, 3,847 units) and TSX (+33%, 2,510 units), Honda would be in deep, deep trouble.

As much as it pains me to admit it, Ford is a company to be admired. When bailouts were handed around like doobies in the Summer of Love, they didn’t partake (argue that point amongst yourselves, but you know what I mean). Their cars are interesting (to say the least) and their reliability is now being thought of in the same vein as Toyota, Honda and Hyundai. All of this is down to one man, Mr Alan “I bet you wish to made me CEO now! Eh, Boeing?!” Mulally. He put forward a vision of Ford divisions and subsidiaries working together to create a global product. He pared down the extraneous brands. He put the axe to Mercury and he didn’t need a bankruptcy to do it. In short, Mr Mulally has done well at Ford. The question is how well? (Read More…)

Hybrids are flying off the lots in Japan, with Toyota’s Prius leading the charts for the 12^th month in a row. Before, that spot was taken by another hybrid, the Honda Insight. In the Battle of the Hybrids, Honda introduces a fighter that hits below the belt, at the wallet: Honda will launch a hybrid in Japan that will cost around $17,000 in today’s dollars, “making it the most affordable hybrid in Japan,” The Nikkei [sub] says. The Nikkei sees a hybrid price war erupting in Japan. (Read More…)

You can test drive a CR-Z for yourself starting on August 24, and goodness knows we’ll be lining up for a crack at it. Early reviews from Europe confirm the impression left by the stat sheet: the CR-Z is neither the re-birth of the CRX, nor the re-birth of the Mk1 Insight. And starting at $19,200, it’s not exactly cheap either [press release here]. Yes, it offers AM/FM/CD/USB audio system with six speakers, automatic climate control, power windows and door locks, remote entry, and cruise control at that base price, and quite a bit more in the $20,760 CR-Z EX, but is there a market in the US for a hybrid that’s smaller than a Prius but less efficient? And didn’t the Mk2 Insight already answer that question? We’ll wait to put the CR-Z through its paces before we pass (further) judgment, but this has the look of a Fiero-style “commuter car” rather than a legitimate sports coupe.

How does he stand now in your eyes, this captain,
the look and bulk of him, the inward poise?

Homer’s Odyssey, Book 11 lines 391-392

Most likely filled with a certain degree of foreboding, Volkswagen signed today contracts with their joint venture partner FAW to build a new plant in the south of China, we hear from a Volkswagen press release. That VW has designs on building cars in the South of China is no news to the avid TTAC reader. But why the anxiety? (Read More…)

Did we say that the strike at a crucial Chinese parts plant is being closely watched? Last week, a 20 percent pay rise was given at a Honda-owned transmission plant, and slowly, everything went back to normal. Until today. Honda is in trouble again. (Read More…)

Production at the Honda parts factory in Foshan, China, partially resumed this Chinese afternoon after Honda offered to increase the wages of striking workers by 366 yuan ($54) a month, company officials told The Nikkei [sub]. This reflects a pay hike of 20 percent. (Read More…)

The strike at Honda’s transmission factory in China that has led to the closure of all Honda sites in China shows no sign of resolution. Actually, there is a new twist: Management is leaning on school interns not to strike, Hong Kong’s South China Morning Post reports. Why the sudden focus on interns? (Read More…)

From Reuters to The Nikkei [sub], the world is abuzz with the shocking news that Honda had to shut down assembly lines at all of their four Chinese auto assembly plants after workers at a Honda transmission factory in Foshan in southern China walked off the job. While the job action barely registers in the Chinese press, my phone in Beijing rings off the hook. Common question from abroad: “Are they allowed to do that?” There goes another myth. (Read More…)

Demonstrations in Bangkok have been put down with a brutality not expected from the Land of Smiles. The stock exchange is on fire. Thailand instated a news and power blackout, making the number of killed and wounded hard to assess.  Japanese car makers have long been invested in Thailand. Now, they are worried about long-term implications. (Read More…)

Honda hasn’t always replaced its bread-and-butter compact, the Civic, every five years. The Mk.1 Civic soldiered from 1972 until 1979. The second through fifth generations were replaced on a regular four-year schedule, before Honda settled into a five-year product cadence with the sixth generation (1996-2000). If it were to keep with that cadence, we’d be seeing a ninth-generation Civic sometime this year, replacing the Mk.VIII, which debuted in late 2005. According to Automotive News [sub], however, Honda is holding off on releasing a new Civic until 2011. What gives?

(Read More…)

There is a major shift underway in the Chinese auto market. Cars are morphing from something exclusively owned by the rich to an everyday item. Sure, luxury cars are big in China. But the volume growth is in low cost cars. As a result, the market share of sino-foreign joint ventures is eroding. Local players, such as BYD are gaining fast. The foreigners are getting worried. (Read More…)