Honda Production | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘Honda Production’

New Honda CEO Lays Out Turnaround Plan

Takahiro Hachigo wants to tap “power of Honda people.”

by on Jul.06, 2015

Former CEO Takanobu Ito and Honda's new Chief Exec Takahiro Hachigo.

Hammered by the recall of more than 20 million vehicles due to faulty airbags, as well as a nearly 9% decline in profits, Takahiro Hachigo has a tough job ahead as the new CEO of Honda Motor Co.

The lifelong employee of Japan’s third-largest automaker laid out his vision of a turnaround during his first official news conference since being promoted to CEO last month. While Hachigo was short on specifics, he offered a broad outline that will bring more products and could see Honda enter new alliances and joint ventures with erstwhile rivals.

Subscribe for Free!

“I plan to create a new Honda,” he told reporters at Honda’s Tokyo headquarters, adding that his goal is to tap into “the power of Honda people.”

(more…)

New Dockworkers Deal Makes Life Easier for Asian Automakers

Tentative pact reached over the weekend.

by on Feb.23, 2015

A strike by West Coast dockworkers is now over, but it could take as long as eight weeks to clear the backlog.

Asian automakers with U.S. operations can breathe easier now as a long-strike by West Coast dockworkers is now over, although it will be weeks or months before things are back to normal.

Operations at ports on the West Coast began to pick up over the weekend as the International Longshore and Warehouse Union and Pacific Maritime Association announced they had reached tentative agreement on a new labor agreement.

Stay Informed!

But observers estimated it could take as long as eight weeks to clear the back log of cargo that had built up at key ports since the middle of January when the port operators began canceling afternoon and evening shifts in response to what they described as a deliberate slowdown. (more…)

Honda Earnings Rebound from Quake

Sales up but unfavorable exchange rates still a problem.

by on Apr.27, 2012

A sales rebound as production of models like the Civic returned to normal helped boost Honda earnings.

Honda earnings for the January to March quarter rebounded by 61% as the maker was able to finally overcome production cuts forced by last year’s devastating earthquake and tsunami in Japan.  But the disaster still took a sharp toll on Honda’s full-year profits.

Honda’s first-quarter sales rebound would have triggered even better results were it not for lopsided exchange rates that cut sharply into margins in the U.S. and other parts of the world.  That’s one reason Honda came in significantly below industry analysts’ expectations for the quarter.

Your Source!

The third-largest of the Japanese makers reported earnings of 71.5 billion yen, or $882.7 million during the final quarter of the Japanese fiscal year.  That was up from 44.5 billion yen during the same quarter of 2011.  But a poll of analysts by FactSet had predicted earnings of 93.2 billion yen, a significant shortfall.

(more…)

Floods Deliver a 3rd Quarter Setback for Honda

by on Feb.01, 2012

The newly-updated 2012 Honda CR-V will be critical to the maker's recovery.

Honda Motor Co. Ltd. reported a drop in revenue, operating and net income for the third fiscal quarter – largely due to flooding in Thailand and the rising value of the yen, which sharply raised the company’s overall manufacturing costs.

The Japanese automaker’s consolidated operating income for the fiscal third quarter ending December 31, 2011 dropped 64%, to 44.2 billion yen, or $578 million. Honda’s worldwide unit sales of automobiles dropped to 830,000 during the company’s fiscal third quarter, which ended on December 31, 2011.

In the Know!

The third-quarter stumble was a significant disappointment for the maker, which had hoped to begin boosting production and rebuilding inventory after the setbacks that followed Japan’s devastating March 31 earthquake and tsunami.

(more…)

Honda Aims to Recover Lost Ground in 2012

New products like Accord, CR-V will be critical.

by on Dec.21, 2011

The 2012 CR-V will be critical to Honda's recovery.

Honda believes it is in a strong position to win back the market share it was forced to surrender this year as it adjusted production to cope with earthquakes and flooding.

The good news for the Japanese maker is that the major disruptions are finally behind it and with production and dealer inventories already on the rise, Honda is already regaining momentum, though it sees the big opportunity to rebuild sales coming in 2012, Tetsuo Iwamura, president and CEO of American Honda told reporters during an appearance in Detroit.

Your Inside Source!

However, Imaura tempered his predictions of healthy gains next year with an acknowledgement Honda seriously underperformed in 2012, racking up a long string of monthly sales decline. “It will be really low bar,” Imaura noted.

(more…)

Further Production Cuts at Toyota and Honda

No clear end in sight in wake of Thai flooding.

by on Nov.07, 2011

The Thai flooding could impact the launch of new Toyota vehicles like the next-gen Lexus GS.

Both Toyota and Honda acknowledge they will have to make further cuts in production in the wake of the disastrous flooding that has savaged Thailand.  The two makers source a number of key components – especially microprocessors and other electronic goods – from the Southeast Asian nation, which has been hammered by some of the worst flooding in decades.

Toyota announced today it will reduce production at its Japanese plants by 30% this month due to parts shortages, with additional cuts being made in the U.S. and other plants around the world.

Your High-Powered News Source!

The cuts come at a particularly bad time for both Toyota and Honda.  The two makers collectively lost more than a million units of production due to the earthquake and tsunami that struck Japan on March 11 leading to an earlier shortage of critical parts and components.

(more…)

Honda Planning Major Redesign of New Civic

Subcompact hammered by critics.

by on Nov.01, 2011

Honda will race a redesign of the much-criticized new Civic to market ASAP.

It has not been a very good year, according to John Mendel, Honda of America’s top U.S. executive. Not only has the maker been hammered by a series of production cuts – the latest the result of flooding in Thailand – but one of its most important products has received a critical drubbing from the media and a tepid response from potential buyers.

That will send the maker’s designers and engineers back to work to come up with a significant “refresh” of the 2012 Honda Civic, reports Automotive News, which should be ready to go to market in time for the 2013 model-year.

“We take feedback seriously, regardless of who it’s from, and we will act accordingly quickly,” John Mendel, American Honda executive vice president, said in an interview in San Diego, where the maker is revealing another critical new model, the 2012 Honda CR-V.

Inside News!

Suggesting the maker is “appropriately energized,” Mendel said Honda is hoping to act as quickly as possible to address criticism of the latest-generation Civic.  The question is how much can be done in short order.  The 2012 version of the compact Civic was the result of a 6-year gestation and normally Honda spends at least three years to develop a mid-cycle update.

(more…)

Honda Profits Tank, Maker Hints at Further Troubles Ahead

Japanese maker withdraws sales guidance for rest of year.

by on Oct.31, 2011

Shortages of the 2012 Honda Civic were a significant drag on the maker's earnings.

Honda saw profits for the second quarter of its fiscal year plunge by 68%, well beyond what analysts had been anticipating – and the maker is hinting the situation may not improve as quickly as it originally anticipated.

Honda had been hoping to begin a much-anticipated turnaround as it finally got its plants back up to speed in the wake of the March 11 Japanese earthquake and tsunami. But the maker is warning it now faces another serious setback as the disastrous floods in Thailand knock a critical plant out of action.

“To put it bluntly, we’re in a really tough spot,” said Honda Chief Financial Officer Fumihiko Ike,” during a briefing on the second quarter results.  “We’re in a much more difficult position because our car factory is inundated.”

Your High-Powered News Source!

While the maker’s U.S. dealers do no market any vehicles sold in Thailand, that doesn’t mean Honda of America is out of the woods.  The loss of the Thai plant could have a significant global impact, as it produces parts and components used at Honda plants around the world.  Making matters worse, about 10% of Honda’s Tier-One suppliers in Thailand have also been flooded and so have others down the supply chain.

(more…)

Honda Looking For Big Comeback – But Still Facing Challenges

“It’s the worst I’ve seen,” says maker’s top U.S. executive.

by on Oct.28, 2011

This year "has been the worst I've seen," laments Honda's top U.S. executive John Mendel.

As far as John Mendel is concerned New Year’s Eve can’t come soon enough.  The top American executive at Honda says this has been the worst year the Asian automaker has experienced since it first entered the U.S. market – though with its factories now back up to full capacity Mendel believes Honda is finally back on track.

Honda has spent months struggling with shortages of most of its products — notably including the all-new Civic it launched earlier in the year, just before a devastating earthquake and tsunami struck Japan and seriously damaged that nation’s automotive infrastructure.  Production is finally back up to normal, just in time for the upcoming launch of the redesigned 2012 Honda CR-V, long the dominant model in the compact crossover segment.

The Final Word!

This year was “the worst I’ve seen,” said Mendel, during an interview while on the launch of the new CR-V.  “We came out strong,” at the beginning of the year, with demand the strongest it had been since the U.S. economy collapsed in 2008, “and then, boom.”

(more…)

Honda Forecasts 63% Drop in Profits

Earnings amidst the devastation.

by on Jun.14, 2011

Shortages of the Honda Civic will contribute to the maker's plunge in profits for the fiscal year.

Just days after its rival, Toyota, projected it would see a huge plunge in profits as the result of the March 11 Japanese earthquake, Honda Motor Co. says it also will take a devastating hit to its bottom line, with earnings for the current fiscal year likely to plunge by 63.5%.

Honda – like Toyota – delayed its forecast for the fiscal year running through March 2012 while it assessed the impact of the earthquake and subsequent tsunami, which shut down most of its home market production for a month.

News You Can Use!

Honda now expects to have most of its factories back up to speed sooner than initially anticipated, but several key operations, including the plants producing the critical new 2012 Civic, will be operating below capacity until autumn.

Honda anticipates the current fiscal year will see profits of 195 billion yen ($2.4 billion), down by nearly two-thirds from the 534 billion yen recorded during the fiscal year that ended last March 31.

(more…)