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Posts Tagged ‘Honda results’

Toyota Incentives Slow, But Don’t Halt U.S. Slide

Japanese Leader is not growing as share declines in May.

by on Jun.03, 2010

Eight years of Camry sales leadership is now threatened.

Toyota Motor Sales (TMS), U.S.A. reported May sales of 162,813 Toyota, Lexus and Scion vehicles, an increase of 7% compared with the year-ago month. Last May, Toyota was clearly benefiting from the collapse of Chrysler and General Motors.

However, that was also well before Toyota’s subsequent recall of millions of vehicles for unintended acceleration problems, which are now implicated in the deaths of 89 people and subject to hundred of lawsuits. (See NHTSA Ups Toyota Death Tally ) The weakness appears in the Toyota brand since it only grew at roughly one-third the industry average. The Lexus luxury division fared better.

All told, Toyota’s U.S. market share fell almost two percentage points to 14.8%, according to Autodata Corporation. And its growth lagged the industry’s for the month, which increased by 19%, more twice TMC’s rate.

The beleaguered company established no-interest loans and discounted leases on most of its top-selling U.S. models in April and May, in an only partially successful attempt to stem a sales slide. Toyota is now continuing no-interest loans on 2011 Camry sedans, Corolla and Matrix cars, as well as the RAV4 sport-utility vehicle and Tundra pickup. The automaker will continue to provide two years of no-cost maintenance on all new Toyotas, according to Bob Carter, U.S. vice president of Toyota-brand sales. Toyota will also start advertising the “Star Safety System” that’s being added to all 2011 models.

Executives downplayed the ongoing troubles at Toyota in spite of the sales numbers, and a trend that will likely see the Honda Accord displace the Camry as the number one selling car in the U.S. this year, threatening Camry’s, eight-year best-selling streak. Year to date Camry is at 125,000 compared to 134,000 for Accord. Honda, said its sales rose to 117,173 Honda and Acura vehicles, from 98,344 as it managed to hold, but not increase, share at 11% in May. (See Driving the 2010 Honda Accord) Nissan’s share is hovering at about 8%.

“Memorial Day weekend kicked off the summer selling season with a bang, resulting in our best-selling weekend of the year,” said Don Esmond, senior vice president of automotive operations for Toyota Motor Sales, U.S.A.,  “As Toyota maintains its leadership position as the number one retail brand in the industry for the third consecutive month, we look forward to building this momentum as we work hard to exceed our customers’ expectations for quality, safety, reliability and service.”


Honda Production Declines for 12th Straight Month

Asia and China remain bright spots by setting records.

by on Nov.30, 2009

Honda was first Japanese automaker to assemble motor vehicles in the United States. Starting with a small motorcycle sales office in Los Angeles in 1959, Honda has grown into a multi-line operation throughout the country to include automobiles, power equipment, powersports, engines and jet aircraft.

Honda, the first Japanese maker to make cars in the U.S., is now so integrated that the declining Yen is less of a problem for it than other makers. Still, production in the U.S. is off 32%.

Honda Motor Company reports for the month of October that production in Japan declined for the 12th straight month. In other regions Honda operates in it was the 13th monthly decline, although production in Asia and China set records.

This means the number two Japanese automaker has thus far been unable to shake off the negative effects of the ongoing global Great Recession that began more than a year ago with the collapse of the financial markets.

In relative terms Honda is in much better financial shape than the two ailing Japanese companies flanking it, number one Toyota and number three Nissan, both of which have been posting far higher financial  losses and are vulnerable to the declining value of the Yen.

Total Honda exports from Japan in October 2009 experienced a year-on-year decrease for the 13th consecutive month.

In the all-important U.S. market, the company’s most profitable, Honda saw production decline 15%, a slight improvement from trend. Year to date, though, Honda is off 32% compared to the same period in 2008. In U.S. sales Honda year-to-date is off about 300,000 vehicles, the equivalent output of almost two final assembly plants.

Japan’s second largest automaker predicts net income of ¥155 billion (about $1.7 billion) in the year ending next March, compared with its earlier forecast of ¥55 billion.

Charts follow.


Honda Fiscal Q2 Income Drops 56%

The Great Recession and stronger Yen hurt financial results.

by on Oct.27, 2009

Honda remains in better financial shape than its Rivals Toyota or Nissan.

Honda Motor remains in relatively better financial shape than its rivals, Toyota or Nissan.

Honda Motor Co., Ltd. announced results for the fiscal second quarter that showed net sales and other operating revenue amounted to ¥2,056.6 billion, a decrease of 27% compared to the same period last year.

The sharp drop was primarily due to decreased sales in its automobile business and the unfavorable impact of currency translation of a weakening U.S. dollar back to Japanese Yen.

As a result, Honda’s consolidated operating income amounted to ¥65.5 billion, a significant decrease of 56.0% when compared to the same period last year.

Nonetheless, Japan’s second largest automaker predicts net income of ¥155 billion (about $1.7 billion) in the year ending next March, compared with its earlier forecast of ¥55 billion.

Second-quarter profit totaled ¥54 billion yen, surpassing some analyst estimates. And clearly puts Honda ahead of number one but loss making Toyota and number three and loss making Nissan in the Japanese industry.

All  will face ongoing challenges if the U.S. dollar continues its collapse.

We have a "yen" for News!

We have a "yen" for News!

Honda raised its full-year forecast for global vehicle sales 3.2% to 3.4 million units in a statement issued this morning.

All the usual suspects were involved in the drastic quarterly decline — decreased profit from lower revenue; the unfavorable currency effects caused by the ongoing appreciation of the Japanese yen; and increased fixed costs per unit because of reduced production. These were only partially offset by decreased selling, administrative expenses, R&D expenses, and other ongoing cost reduction efforts.


Honda Global Production Declines Again

China sets record, but not enough to offset a total drop of -17%.

by on Sep.28, 2009

Year-over-year output and sales continue to decline.

Year-over-year output and sales continue decline.

Honda Motor Co., Ltd. said this morning in Tokyo that through August of this year production declined in all regions for the 11th straight month, -17%.

The decline began in October of 2008, after the collapse of Lehman Brothers in September sent global markets into a tailspin from which they haven’t recovered.

In Japan, it was the tenth straight monthly decline.

Record production in China was not enough to offset the far larger drops in the Asia region.

In the U.S., Honda production was off 36%.
Total exports from Japan in August 2009 experienced a year-on-year decrease for the 11th consecutive month, as well.

In its last quarterly report ending this past June, Honda’s global automobile sales totaled 766,000, a decrease of 20% from the same period last year. In Japan, unit sales amounted to 128,000 thousand units, the same level compared to the same period last year due mainly to favorable sales of Insight and Freed despite weak demand in the market. Vehicle sales outside of Japan decreased 24% to 638,000 from the corresponding period last year, due mainly to decreased vehicle sales in North America.

Latest Results!

Latest Results!

To cope with the drops in the U.S., Honda scheduled downtime, mostly Fridays off, late last year and into the summer this year. Inventories are now lower, partly as the result of Cash for Clunkers, which spurred small car sales and helped sales of its Civic and Accord models. Honda is now beginning to schedule some overtime production on Saturdays at its plants in Ohio and Alabama.