Honda Cars : Japanese Revival Seen in Honda’s First Plant in 49 Years | 2013 New Honda Car Reviews 0

By Anna Mukai - Feb 27, 2013

In July, Honda Motor Co. (7267) is planning to do something it hasn’t done for almost 50 years: open a car factory in Japan.
In 1964, just as the country was preparing to host the Olympic Games, Honda inaugurated a plant in Sayama, near Tokyo. That factory, along with two older ones, met surging Japanese domestic demand as the country prospered. And since the early 1990s, when asset prices collapsed, ushering in Japan’s “lost decade,” there has been little need for expansion.
The new factory, with an annual capacity of 250,000 vehicles, is opening just as a weaker yen is making Japanese manufacturers such as Honda more profitable. In recent months, investors have flocked back to Japan, pushing the benchmark Nikkei 225 Stock Average to levels unseen since 2008. Evidence of a broader recovery is growing as economists predict the economy will emerge from recession this quarter.
The factory, in Yorii, a downtrodden city of about 36,000 two hours northwest of Tokyo, illustrates how that optimism is spreading from Tokyo’s trading floors to smaller towns.
“Honda is a world-renowned company and it’s coming -- who wouldn’t be excited?” said Tomiko Yokota, who runs a Yorii restaurant serving fried pork cutlets that’s been in her family for more than a century. “There will be more people, more traffic. We’re too small to fit lots of people, but we do take- out bentos too.”

West Virginia

Honda says the new factory is part of a reorganization of its domestic operations that includes scaling back Sayama. Yorii will use more efficient technology and allow the company to consolidate production of compact models such as the Fit, its top seller in Japan.
The factory is a departure from recent decades. Honda, Toyota Motor Corp. (7203) and Nissan Motor Co. (7201) have opened dozens of overseas plants from West Virginia to China’s Tianjin as Japanese car demand stagnated along with the economy. Honda factories outside Japan account for about three-quarters of the company’s annual output of 4 million cars.
The Yorii plant “is very important because big companies have high multiplier effects and will lead to many jobs,” said Jesper Koll, head of Japanese equity research at JPMorgan Chase & Co. in Tokyo. It shows Japan’s recovery is “not just about the exchange rate, but that what is happening is concrete and signals Japan is now a viable host for cutting-edge manufacturing.”

Yellowing Billboards

Like most of Japan, Yorii has seen its share of economic malaise. During lunchtime on a recent weekday, the local sushi restaurant is only one-third full, and on the main shopping street numerous stores are shuttered. At the exit of Yorii train station, yellowing signs hang on billboards, seeking advertisers.
“All the bars I used to go to have closed, and when new shops open, they shut quickly,” said Shozaburo Aoyanagi, a 63- year-old taxi driver who has lived in Yorii for two decades. “That Seven-Eleven is new,” he said, pointing to a nearby store. “It won’t last. There’s no one here.”
Yorii officials expect that to change. The local government says 3,800 jobs will be created by fiscal 2017 thanks to Honda and its suppliers.
“They’re going to need to live somewhere, eat somewhere, and throw year-end parties,” said Yoshiro Harada, a 71-year-old owner of a sushi restaurant in Yorii.

Cheaper Yen

Honda is opening the plant as the yen is falling against major currencies. It has dropped more than 12 percent against the dollar since polls in mid-November signaled Shinzo Abe would become prime minister. The cheaper currency boosts the value of Japanese products sold overseas and has prompted companies such as Toyota and Fast Retailing Co. (9983) to raise earnings forecasts in the past month.
Honda on Jan. 31 trimmed its profit outlook for the fiscal year ending March, though those projections were based on a stronger yen. The yen this week traded as low as 94.77, the weakest level since 2009.
Analysts surveyed by Bloomberg expect Honda to post a profit of 406 billion yen ($4.4 billion) for the current fiscal year, or almost double the previous year’s level. Honda shares have jumped about 40 percent since the end of October, versus gains of more than 50 percent for Toyota and more than 30 percent for Nissan.
Given that the Yorii plant has been in the works for six years, “the timing is very lucky for Honda,” said Martin Schulz, senior economist at Fujitsu Research Institute in Tokyo. Nonetheless, he cautions that competition from other Asian countries has grown so much that it will be hard for Japanese manufacturers to ever regain the primacy they once enjoyed.

‘Younger People’

Last December, the number of manufacturing jobs in Japan fell below 10 million for the first time since 1961. According to the Japan Center for Economic Research, Japanese manufacturing jobs may fall to 8.3 million in 2015 from a peak of 16 million in 1992. The Japan Automobile Manufacturers Association expects domestic sales to fall 12 percent this year.
The broader economy is of little interest to Kazuyo Imamura, who has run a ramen shop in Yorii for 30 years. What interests the 60-year-old is the new factory’s effect on the town.
“I don’t know about jobs and all that, but I hope more younger people come in,” Imamura said. “You don’t see many young people around in Yorii right now.”

Source;
http://www.bloomberg.com/news/print/2013-02-26/japanese-revival-seen-in-honda-s-first-plant-in-49-years.html

Honda Cars : Honda Counters Weak Yen Criticism After U.S. Objections | 2013 New Honda Car Reviews 0

Hmmm, where were The American Automotive Policy Council when the yen was at a disadvantage for Japanese Auto Makers????

By Craig Trudell - Feb 8, 2013

 

Honda Motor Co., targeting record U.S. sales this year, said the weaker yen isn’t giving the Japanese company an advantage after a group representing U.S. automakers called for government intervention.

“I defy anybody, when we’re building 90 percent of what we sell here, to say we have a currency advantage,” John Mendel, the Tokyo-based company’s executive vice president of U.S. sales, said yesterday at a J.D. Power & Associates conference in Orlando, Florida. “I don’t think the current level of 90-plus yen to the dollar is a cause for alarm.”

Honda, Japan’s third-largest automaker, relies on the U.S. for more than 30 percent of its global sales. The American Automotive Policy Council, which represents Ford Motor Co., General Motors Co. and Chrysler Group LLC, said in January that President Barack Obama should tell Japan’s new government that the U.S. will retaliate for policies aimed at weakening the yen.

The yen, which has weakened more than any currency since mid-November, trades at about 93 to the dollar and 124 to the euro. Honda’s operating income gains by 16 billion yen annually for every 1-yen drop in the dollar rate, and 1 billion yen for each 1-yen drop in the euro rate, according to the company.

Honda on Jan. 31 cut its net income expectation for the year ending in March by 1.3 percent to 370 billion yen ($4 billion), countering other Japanese exporters that have raised their forecasts after the yen tumbled. The company cited a slower-than-expected recovery in sales in China and weakness in European demand.

‘Deathbed’ Rates

“Nobody worried about Japan” when the yen “went from 115 to 78, and said ‘Geez, I hope those guys are OK,’” Mendel told reporters yesterday. “Now all the sudden it’s moderately off deathbed kind of rates, and everybody’s going ‘Unfair.’ Let’s focus on the quality of products. Let’s focus on the customer.”

Honda’s American depositary receipts fell 1.1 percent to $37.89 at the close yesterday in New York. They’ve gained 3.4 percent for the 12 months ended Feb. 8 as the Standard & Poor’s 500 Index rose 12 percent.

U.S. automakers have said the undervalued yen distorts trade and stunts job growth for American manufacturers. Japan’s Liberal Democratic Party, which reclaimed power in December, has let the yen continue its slide against the dollar, making U.S. auto exports relatively expensive, the American Automotive Policy Council said in a Jan. 17 statement.

“We urge the Obama administration to make it clear to Japan that such policies are unacceptable and will be met by reciprocal measures,” Matt Blunt, a former Republican governor of Missouri and president of the Washington-based industry group, said in last month’s statement.

‘Japanese Giant’

A weaker yen is “awakening the Japanese giant,” Adam Jonas, a New York-based analyst at Morgan Stanley, wrote in a Jan. 28 report. He said he expects market share for Honda, Toyota Motor Corp. and Nissan Motor Co. to rebound on an improved ability to market their vehicles and equip them with better content and interior features.

“With the correction in the yen trend, they are likely to switch from a defensive to an offensive mode,” Jonas wrote of the Japanese automakers. “Short-term positives include access to a wider selection of pricing strategies with regards to incentives and cutting prices.”

Honda Incentives

Honda’s Mendel said he expects the company will reduce its incentives in the U.S. this year because of recently introduced models such as the revamped Civic small car and Accord sedan. Honda increased spending on marketing promotions last year by 3.9 percent to $2,206 a vehicle, as the industry average fell 1.7 percent to $2,482, according to researcher Autodata Corp.

U.S. sales for Honda climbed 24 percent to 1.42 million cars and light trucks last year, rebounding from natural disasters in Asia that disrupted production in 2011. Honda’s best year in the U.S. was 1.55 million Honda and Acura vehicles sold in 2007, and the company wants to exceed that mark in 2013, Tetsuo Iwamura, the automaker’s executive vice president, said last month at the Detroit auto show.

Output at the company’s North American plants surged last year to a record 1.69 million vehicles. Honda plans to be a net exporter as its plants in the U.S., Canada and Mexico take more responsibility for developing global models for sale in multiple countries, the company said in December.

“While the purpose of local production is really to build products close to the customer, this strategy also has minimized the effects of exchange rates in our business,” Mendel said.

Honda is adding a factory in Mexico to produce Fit hatchbacks starting in 2014. With the addition of that plant, Honda has said it will have capacity to build at least 1.9 million vehicles in North America annually.

“Renewed rhetoric about exchange rates giving an advantage to Japanese automakers just really doesn’t pass the sniff test,” Mendel said.

Source;
http://www.bloomberg.com/news/print/2013-02-08/honda-counters-weak-yen-criticism-after-u-s-criticism.html

Honda Cars : Honda to set up a new production plant in Thailand | 2013 New Honda Car Reviews 0

For Honda, Thailand is one of the strategic manufacturing bases. The existing Thailand facility serves as a mother plant for cars like the Honda City and Brio.

Currently, Honda Cars India sources majority of its imported components for the City, Jazz and the Brio from Honda’s Thailand factory.

Honda has announced that it will construct a brand new factory in Thailand at Prachinburi province which is located about 120 km to the east of Bangkok. The new production facility is expected to go on stream in 2015 with an estimated annual production capacity of 1,20,000 units.

The new plant will mainly cater to compact vehicles. In addition, Honda is planning to increase the production capacity of the existing plant from 2,40,000 units to 2,80,000 units per annum. There are also reports that the capacity could be further expanded to 3,00,000 units in 2014, so by the time the new plant is operational, the total capacity of Honda in Thailand will be 4,20,000 units.

Honda is also working on a new factory in Indonesia and has announced a plant in Mexico as well to cater to that part of the world. With an ambition of achieving annual sales of 6 million units globally by March 2017, the new plants, which will primarily build the Honda Global Compact Series models (next gen Jazz, City and Urban SUV) are indispensable.


Source;
http://indianautosblog.com/2013/02/honda-to-set-up-a-new-production-plant-in-thailand-62999

Honda Cars : Honda to build new Accord hybrid car in U.S. | 2013 New Honda Car Reviews 0

DETROIT (Reuters) - Honda Motor Co Ltd said on Thursday it will invest $23 million to build a hybrid version of its popular Accord sedan at its plant in Marysville, Ohio.

The Japanese automaker said it will add about 50 jobs at the plant to build the car, which will go on sale this fall as a 2014 model.

It will be the third hybrid vehicle Honda builds in the United States, following hybrid versions of the Civic and Acura ILX built at the company's Greensburg, Indiana, plant.

The Ohio plant is undergoing an expansion of 95,000 square feet to house assembly processes and logistics specifically for production of the Accord hybrid, Honda said. The project includes lengthening the main assembly line and adding space for related parts receiving and sub-assembly operations.

In the last three years, Honda has announced investments at its Ohio manufacturing facilities exceeding $800 million.

(Reporting by Ben Klayman in Detroit; editing by John Wallace)

Source;
http://news.yahoo.com/honda-build-accord-hybrid-car-u-135224685--finance.html 

Honda Cars : Motortrend: We Hear: Future Honda Civic, Accord, and CR-V May Move to One Platform | 2013 New Honda Car Reviews 0

Not sure what to think about this rumour....

Though Honda experienced sales success in 2012 with the Accord, Civic, and CR-V, we hear the automaker may move the three high-volume vehicles to one platform by 2017. The move could help Honda reduce purchasing costs for the three models by about 30 percent in three to four years, a new report suggests, and help the automaker better compete in emerging markets.


In the U.S., the Honda Accord was the second-best-selling midsize sedan in 2012, while the Civic and CR-V topped their respective vehicle segments. Designing all three vehicles on one, flexible platform could help increase the number of shared parts, but that’s not the only way Honda can reduce costs.

Before long, Honda may start asking suppliers to design, develop, and assemble parts after providing the proper specifications, the report suggests, instead of the automaker assembling parts already built by suppliers. Honda also plans to more than double investment in major suppliers capable of supplying parts in emerging markets around the world.

With Honda possibly adopting a similar parts-sharing strategy as the one we’ve seen from Volkswagen, we wonder whether potential cost savings could be invested back into improving lower-volume models like the Honda CR-Z or even help make a business case for a “baby NSX” type car.

Before any of those speculative possibilities happen, though, Honda will debut the Urban SUV concept to the Detroit auto show this month. The concept likely previews a Fit-based crossover coming to the U.S. market.

Source;

http://wot.motortrend.com/we-hear-future-honda-civic-accord-cr-v-may-move-to-one-platform-311203.html#axzz2HObNmuOV

Honda Cars : Honda's Ohio plant changed competitive landscape in America | 2013 New Honda Car Reviews 0

By Alisa Priddle of The Detroit Free Press

Thirty years ago, the first Accord rolled off the line at Honda's Marysville, Ohio, plant, the first car a Japanese automaker assembled in the U.S., changing the competitive landscape of American automaking forever.

From an underdog carmaker known in Japan as a cadre of engine geeks, Honda established a trust with young American consumers not unlike the way today's Millennial generation flocks to Apple stores. "They were seen as dirty-fingernailed motorcycle mechanics and got no respect in Japan," said Dave Cole, chairman emeritus of the Center for Automotive Research. "So they decided to grow elsewhere to become a strong international company."

Since those early industrial seedlings nurtured in what used to be Ohio cornfields, Honda's North American manufacturing network now spans seven auto plants in the U.S., Canada and Mexico with more under construction, in addition to its motorcycle and power equipment operations.

Honda has invested $12.3 billion in the U.S. -- $8 billion in Ohio -- employs more than 26,000 Americans and has never laid off a worker. Workers were retained and paid for months when Ohio plants cut production following the tsunami in Japan.

The original silver-gray 1983 Accord that rolled off the line Nov. 1, 1982, with a blue and white Ohio license plate "USA 001" is on display at the Henry Ford museum in Dearborn.

Though its world headquarters remains in Japan, Honda makes and sells more cars in North America than in any other continent. The seven plants can produce 1.63 million vehicles a year now and will boost annual capacity to 1.92 million vehicles when a new$800-million plant in Celaya, Mexico, starts production in 2014.

"It has had the most profound effect on the industry," said Michael Robinet, managing director of IHS Automotive Consulting in Northville. It wasn't just the introduction of Japanese culture, but philosophies and practices that helped establish new benchmarks for engineering, manufacturing and quality.

The competition made everyone's cars better.

"Honda showed a Japanese company could go into the American heartland and establish a non-union facility with unique and foreign work practices and suppliers and be successful and continue to expand over a quarter century," Robinet said.

Amid tremendous skepticism, "they showed American workers could build vehicles as well as other countries," he said. Workers were recruited primarily from rural communities, where many applicants tended to their farms before or after clocking out from the factory.

Honda will invest another $2 billion by 2014 in the U.S., Canada and Mexico and the roughly 900 engineers at Honda R&D Americas in Ohio are charged with developing global vehicles such as the next-generation Civic for 2016 and a new NSX sports car.

But the company's resolution to do everything itself when others outsource and form partnerships has raised questions about whether the strategy will continue to be a winning one.

Recently industry observers have attacked Honda's styling, which has never been particularly daring, as too bland. The new Civic is getting a hasty redesign.

Honda's three-decade journey began with former Ohio Gov. James Rhodes and Honda founder Soichiro Honda. Rhodes convinced Honda-san to start making motorcycles in Marysville in 1979. That led to a $3.9-billion investment and the car assembly plant that launched three years later.

Honda was fifth in automobile production in Japan and many auto executives in Japan thought Honda would stumble in America. But it established a beachhead that grew to include suppliers and engine, transmission and car plants in Ohio, Indiana, Alabama and Canada.

Jeff LaRoche, a 29-year veteran at Marysville, remembers pre-shift calisthenics and a lot more Japanese colleagues.

"We came in thinking we had a lot to prove. 'Could a bunch of farmers do it and prove we were as good as the Big Three, who had second and third generations of workers?' " LaRoche said.

They exercised to the theme of the "Magnum P.I." TV series.

"It looked pretty cool, like an army ready to build cars," LaRoche said.

The automaking aerobics are long gone and there are few Japanese colleagues today, but the melding of cultures remains.

"We view this as our company," said Rob Lee, a welding manager at Marysville with 29 years' experience. "We feel like we're separate. We're Americans, but there is a sense of pride being Honda."

John Spoltman, manager of the Anna Engine Plant, said the population of Marysville has more than doubled to 22,000 since 1982.

"We didn't want to overwhelm the area," Spoltman said. "We took pains to change truck routes out of courtesy to neighbors, who would have had headlights in their windows at all hours."

Nearby Highway 33 has gone from a two-lane road to what locals call the "Hondabahn."

"We don't look at whether we are a Japanese or American company," said Marysville plant manager Jeff Tomko. "The combination of Japanese culture, U.S. aggressive style, rural manufacturing and a hard work ethic has made it a success."

Honda was able to launch new models seamlessly back when Big Three plants had to be idled for months to retool.

"The Japanese couldn't build a plant for every model like GM. They had to build it all under one roof," Cole said.

The quick changeovers took stress off dealers who could sell down the outgoing models without deep discounts, and they received new models in quantities that allowed the sticker price to be close to the selling price.

"It was a game changer," said Tomko. "Folks wondered how we could do it and how we could do multiple models on one line. But in Japan, the mind-set is small is smart."

Employees grew with the plant.

Lee was 22 when he left a machine shop job in 1983 for Honda and an extra 15 cents an hour.

"The rumor was it was a good place to work. I was scared to death. I had never been exposed to an assembly line before and was worried about keeping up with the line speed." He lost almost 15 pounds and was sore the first few weeks, but he's still there 29 years later.

Monte Dyke is an engineer in the paint shop with 29 years of service.

"I was a snot-nosed kid from a local farm. It was a bit scary," Dyke said, especially the manual spot welding. "I got used to the manufacturing flow and routine and gained confidence. I was proud of what we did."

After 30 years, Marysville started building the ninth-generation 2013 Accord on Aug. 20, with new engines and transmissions from nearby factories.

The East Liberty plant makes the Honda CR-V and Acura RDX.

Marysville represents a$4-billion investment to date. About 4,800 workers make 1,760 Accords and Acura TLs a day.

Anna is Honda's largest engine plant with 2,600 workers and 80 assembly lines snaking across 2 million square feet, which insiders nicknamed "Disneyland for engineers." Within this mini industrial city, Honda workers melt scrap material in foundries and do stamping, casting, machining and engine assembly. Anna will make the engine for the new NSX due about 2015. It will be almost a hand-built engine on a separate, showcase line, Spoltman said. Working on it will be a reward for the workers who get the assignment. More details, including the location of the plant to make the NSX in Ohio, are expected to be revealed later in November.

Source;
http://www.freep.com/article/20121028/BUSINESS01/310280143/Honda-s-Ohio-plant-changed-competitive-landscape-in-America

Honda Cars : Report: Future Honda Accord PHEV May Be Built in the U.S. | 2013 New Honda Car Reviews 0

Written by: Jason Udy

The U.S.-built 2013 Honda Accord may debut with I-4 and V-6 powertrains, but the plug-in sedan variant is only one model year away. While the 2014 Accord PHEV may be built in Japan and in small numbers, a new report says that Honda may begin production of the advanced four-door in the U.S. as early as calendar-year 2015. With the yen-to-dollar exchange rate destroying any potential profits, though, until such a move occurs, Honda will continue to import Japanese-built Accord PHEVs to the U.S.

This won’t be the first time Honda has tried selling an Accord hybrid. From 2004 to 2008, the automaker offered an Accord V-6 Hybrid, but since the premium-priced car focused more on performance than fuel economy, it was discontinued. The automaker says that selling a hybrid version of a car alongside a regular gas-only model can be harder than selling a hybrid-only vehicle such as the Honda Insight and Toyota Prius because there is no non-hybrid variant of the same car that makes it difficult for some consumers to justify the added cost.

“The blended brakes’ handoff between regenerative and friction braking as you approach a stop — historically one of the hardest things for car companies to get right — is the best we’ve ever experienced,” we wrote in our 2013 Accord First Drive, about the plug-in variant. “The Accord PHEV is not quick off the line — in fact, it’s painfully slow — but it accelerates quite rapidly at highway speeds.”

Some PHEVs already on the market or soon to roll into dealerships include the Toyota Prius Plug-in, Chevrolet Volt, and Ford Fusion Energi. Final assembly for the Volt and C-Max is in Michigan while the Prius Plug-in is built in Japan. Does the location of where a PHEV is built matter to you?

Source;
http://rumors.automobilemag.com/report-future-honda-accord-phev-may-be-built-in-the-u-s-174811.html

Honda Cars : Honda Weighs Moving Fit Production to Mexico in 2014 | 2013 New Honda Car Reviews 0

TOKYO – Japanese automaker Honda Motor Co. is studying the possibility of moving production of its Fit model destined for the U.S. market from its plant in Japan to Mexico in 2014, the Nikkei business daily reported Wednesday.

Honda exported about 67,000 Fits from Japan last year, with 40,000 units of the small automobile destined for the U.S. market.

The automaker, which has two plants in Mexico, plans to manufacture the next version of the highly fuel efficient Fit, sold as the Jazz in some European markets, in that country.

Honda expects to open its third Mexican plant in 2014, a facility located in the central state of Guanajuato that will have the capacity to produce nearly 200,000 units annually.

The automaker could also shift some Fit production to Europe or other countries in Asia after ending manufacturing of its popular Civic and Accord models for the U.S. market at its Saitama plant north of Tokyo, Nikkei said.

Honda exported 250,000 vehicles, or less than 30 percent of its domestic production, in 2011. That figure was well below the 690,000 units, or 54 percent of domestic production, exported in 2007.

The automaker may be looking to cut exports down to around 200,000 units and boost manufacturing of the minivehicles that are popular in Japan and which account for about 1 million units of annual output, Nikkei said.

Rival Toyota Motor Co., Japan’s largest automaker, is planning to produce Corollas bound for foreign markets outside the country to avoid taking a hit to profits due to the strong yen, the business daily said. EFE

Source;
http://www.laht.com/article.asp?ArticleId=599174&CategoryId=14091

Honda Cars : New Honda Paint Process Now 25% More Efficient [Video] | 2013 New Honda Car Reviews 0

                                        Of all the separate procedures that are required to properly build a car, the most energy-consuming of all the processes is painting. According to Honda engineer Shubho Bhattacharya, paint alone uses as much as 60% of all the power used to build a car.

This realization prompted Bhattacharya to come up with a new way in which to more efficiently paint Honda’s cars, and with the help of a clever algorithm which has now been implemented throughout their North American plants, he has managed to cut each plant’s energy use by a staggering amount - 25% in one fell swoop!

What this means is that simple optimization without any sort of retooling has slashed a considerable amount of electricity off of Honda’s monthly bill. We say if the rest of the procedures would be similarly optimized, perhaps building cars would become even cheaper, quicker and yield a higher quality finished product in the process.

Source;
http://www.autoevolution.com/news/honda-paint-process-now-25-more-efficient-video-48585.html

Honda Cars : Honda puts hybrid cars on hold (in Indonesia) | 2013 New Honda Car Reviews 0

As Honda begins construction of a second factory in Indonesia on Monday, its executives say the giant Japanese carmaker has no immediate plans to produce hybrid cars in Indonesia even as the government pushes for fuel- and environmentally-friendly cars.

“It would be difficult to produce hybrid cars in Indonesia , as we need to invest in the technology first,” Honda Prospect Motor (HPM) marketing director Jonfis Fandy said at the ground-breaking ceremony for Honda’s newest plant in Karawang, east of Jakarta.

The Indonesian market was not ready for hybrid cars due to a lack of knowledge about the technology, he said, adding that work was needed to inform the public about how hybrid cars operated and how they could benefit from them.

For hybrid cars to truly contribute to Indonesia ’s energy conservation efforts, they had to be available in both the low and high ends of the market, he said. “How much [energy] can we realistically save if hybrid cars are only available for high-end users which make up 30 percent of the automobile market here?” he asked rhetorically.

Honda introduced the Honda Civic Hybrid in Indonesia in 2007 but pulled it off the market because of lack of interest. Honda is currently building a plant in Thailand to produce Jazz Hybrids and the first cars will roll out in 2013.

Industry Minister MS Hidayat said on Monday that he would call on all carmakers in Indonesia, including Toyota and Honda, to push them to start producing hybrid cars, detik.com reported. President Susilo Bambang Yudhoyono last month said the government planned to offer various incentives to carmakers to make them affordable.

Honda’s second factory in the Mitrakarawang Industrial Area has been earmarked to build the Brio at the lower end of Honda’s range. The plant will produce the hatchback version, which is already sold in India and Thailand, and the newer MPV model, which will be launched in 2014.

Honda’s operation in Indonesia is a joint venture between Honda Motor Co. of Japan and PT Prospect Motor of Indonesia. The original plant, opposite the new factory, produces Jazz, CR-V and Freed models. Once completed in 2014, the second plant will triple Honda’s production capacity in Indonesia to 180,000 cars per year from 60,000.

“Indonesia is an important market for Honda,” Takanobu Ito, the CEO of Honda Motor Co., said at the ground-breaking ceremony. “With a growing market and more conducive environment for economic growth, this country has a lot of potential.”

Ito said the Indonesian operation was one of Honda’s strongest both in terms of sales and production in the Asia-Oceania region and it topped sales among Southeast Asian markets last year.

Honda has chosen Indonesia as one of its production hubs in Asia, along with India and Thailand. It plans to use more materials from local suppliers, adding a further 45 local suppliers to its current 85.

The new factory will be built by construction company PT Takenaka Indonesia. (han)

Source;
http://www.thejakartapost.com/news/2012/06/05/honda-puts-hybrid-cars-hold.html

Honda Cars : Honda Says Civic Has ‘Ammunition’ to Hang On as Top Compact Car | 2013 New Honda Car Reviews 0

By Alan Ohnsman - Mar 13, 2012

Honda Motor Co.’s Civic, stung by critical reviews and tight U.S. supply in 2011, has outsold rival small cars and the company has enough “ammunition” to hold the spot, an executive said.

U.S. sales of Civic sedans and coupes rose 45 percent to 48,970 in the year’s first two months, ahead of Toyota Motor Corp.’s Corolla, a perennial challenger, and General Motors Co.’s Cruze. After supply disruptions last year, Honda now has enough North American capacity to make Civic the top-selling compact, even if that isn’t a target, said Tetsuo Iwamura, chief operating officer for North America.

“When competitors shoot at the Civic, we’ll have enough ammunition to shoot back,” Iwamura said in an interview this week at Honda’s U.S. headquarters in Torrance, California. “We don’t talk about No. 1 as a goal. Always we think about having very good acceptance and high customer satisfaction.”

The car that’s been the core of Honda’s U.S. business since 1973 hasn’t led compact sales since 2002. Civic trailed both Corolla and Cruze last year, according to Autodata Corp., a Woodcliff Lake, New Jersey researcher. A year after an earthquake and tsunami damaged Tokyo-based Honda’s parts supply base and engineering center in Japan, the carmaker has ratcheted up North American output of the model 69 percent to regain sales in the U.S., its biggest source of revenue.

Honda has gained 32 percent in Tokyo trading this year, recovering most of the drop last year, when the stock fell 27 percent. It last closed at 3,100 yen.

Output Increased
Honda made 84,678 Civics at plants in Canada and Indiana in the first months of the year, up from 50,056 in the same period a year ago. Production of all Honda and Acura cars and light trucks in North America jumped 36 percent to a record 301,564, according to the company.
Civic sales fell 15 percent last year to 221,235, the lowest since 1992. Along with parts-related production delays, the 2012 Civic LX sedan failed to receive the “recommended” status its predecessors had from Consumer Reports last August. The magazine faulted the car for a decline in interior quality, choppier ride and road noise.

Higher U.S. gasoline prices are benefiting Civic, and should buoy demand for at least another four months, said Jesse Toprak, industry analyst for TrueCar.com.

“It’s got a pretty good chance of being No. 1 this year, owing to the availability and the price point,” said Toprak, who is based in Santa Monica, California. “They are a bit lucky that the fuel prices are rising now as Civic continues to be viewed generally as more gas-efficient, and a safe choice.”

Fuel Price
The average price for a gallon of regular unleaded gasoline has increased 16 percent this year to $3.81 as of March 12, according to AAA, the largest U.S. motorist group. The Civic coupe has a starting price of $15,605 while the sedan’s price starts at $15,805, according to researcher Edmunds.com.

The outlook for Civic beyond July, when fuel prices may ease, will depend on updates of the car Honda plans to make to address some criticisms and competing models including Hyundai Motor Co.’s Elantra, Toprak said.

“Hyundai, in particular, has shown that it has the ability to replicate the kind of success seen with Honda and Toyota a generation ago,” he said.

Even with some unfavorable reviews for the current Civic, the car continues to attract the buyers competitors seek, said Alexander Edwards, president of the automotive division of Strategic Vision Inc., a San Diego-based consumer-research firm.

How Competitors Fare
Within the small-car segment, Civic is “still grabbing a younger, somewhat wealthier crowd,” Edwards said. The median age of its buyers is 45, compared with a segment average of between 49 and 50 years old, he said.

Volkswagen AG (VOW)’s Jetta draws a younger customer, with a median age of 41, because of its cheaper base price and Hyundai’s Elantra matches Civic with a median buyer age of 45, said Edwards, whose firm surveys 300,000 people a year for its automotive studies. Jetta’s starting price is $15,515, according to Edmunds.

The average Corolla buyer is 49, while the median age for customers of Ford Motor Co. (F)’s Focus is 53 and Chevrolet’s Cruze is 58, Edwards said.

GM’s data indicate that the average Cruze buyer is about 53, Jim Cain, a company spokesman, said in an interview.

Honda’s problems last year didn’t keep it from a top- ranking spot in terms of brand consideration, with 50 percent of people in the market for a new car saying they’d consider it, Edwards said, citing Strategic Vision data.

Inventory had a bigger impact on Civic sales last year than Consumer Reports’ review, said Iwamura, 60, who becomes Honda’s executive vice president on April 1 and will continue to lead North American operations.

“I accept their criticism very sincerely, but yet believe we’ll be able to make them once again a strong fan of the Civic,” he said.

Source;
http://www.bloomberg.com/news/print/2012-03-13/honda-plots-u-s-civic-rebound-buoyed-by-supply-abundance-gasoline-prices.html

Honda Cars : Motortrend: We Hear: Honda Profits Down at End of 2011, Better Sales in 2012? | 2013 New Honda Car Reviews 0

Things are either looking down or up for Honda, depending on how you look at it: the company’s operating profit may have been down 65 percent in the last quarter of last year, but it is promising a sales bump in the coming fiscal year, starting April 1.

Honda’s operating profit was just 44.3 billion yen ($581 million) in the last three months, drastically below where industry analysts said it would be. It now projects that it will end the year with an operating profit of 200 billion yen ($2.62 billion). It’s about 35 percent lower than Honda’s own estimate that it released sometime in August.

There are a number of factors behind these numbers, but chief among them is the one-two punch of the Japanese earthquake and Thai floods that rocked east and southern Asia. Honda was, without doubt, the hardest hit of the three Japanese automakers — the company estimates it lost the production equivalent of 260,000 cars in the quake and flood. Meanwhile, both Toyota and Nissan returned to full production much earlier than Honda, and have regained market strongholds in the months since both natural disasters happened.

Honda executives haven’t backed down, however, and said that they were bullish about this calendar year. The company predicts a 25-percent increase in sales in North America alone over the calendar year 2011. The goal sounds ambitious–and it is–but a 25 percent increase in American Honda and Acura sales would put the company at about 1.43 million units this year, or bring it back to 2007-2008 levels. It must also grapple with big currency fluctuations — at the end of 2007, the best of Honda’s last five years, one dollar bought 112.64 yen; at the end of 2011, its worst of the five years, that dollar only bought 77.63.

One bright spot? Honda promises that it’ll complete the all-important refresh of the current Civic this year, either to be debuted late this year or early next. We’ll have to see if it spells more sales for the embattled company soon.

Source;
http://wot.motortrend.com/we-hear-honda-profits-down-at-end-of-2011-better-sales-in-2012-163843.html

Honda Cars : Honda to spend $98 million to build CVT parts at Ohio plant | 2013 New Honda Car Reviews 0

During trial production, two of Honda's advanced continuously variable transmissions undergo leak testing on the new assembly line at Honda's plant in in Russells Point, Ohio.

DETROIT -- Honda today said it will invest $98 million at its Anna, Ohio, engine plant to build pulley components for the company's continuously variable transmissions.

The CVTs are part of Honda's next-generation powertrain technologies aimed at boosting performance and fuel efficiency.

Production of the pulley components in Anna is to begin in 2013.

"The production of this new CVT technology puts the Buckeye State right in the middle of Honda's global strategy," Hide Iwata, CEO of Honda of America Manufacturing, said in a statement.

The investment in the Anna plant is aligned with a $120 million investment announced last year for Honda's plant in Russells Point, Ohio, where the company will begin producing the CVT this summer.

The modernization and expansion of the Russells Point transmission plant and the new pulley component production at Anna will create a combined 150 new jobs, Honda said.

Since November 2010, Honda has announced more than $500 million in investments for advanced technologies and systems at its four Ohio plants. In January, Honda's Acura luxury brand said the all-new Acura NSX -- which debuted last month at the Detroit auto show -- will be developed in Ohio and built at a new manufacturing operation in central Ohio.

PRESS RELEASE: Honda to Invest $98 Million in Anna Engine Plant for Production of Advanced Transmission Components
Honda will build new continuously variable transmission (CVT) in Ohio;
Total recent Honda investment in Ohio operations exceeds $500 million

ANNA, Ohio, Feb. 1, 2012 – Honda announced today that it will invest $98 million at its Anna Engine Plant as part of a strategy to build the company's next-generation powertrain technologies in Ohio. The move is aligned with a $120 million investment, announced last year, for the production of a new continuously variable transmission (CVT) in nearby Russells Point, Ohio.

The Anna Engine Plant will manufacture high-tech pulley components for Honda's new CVT technology, which is part of the new Honda 'Earth Dreams' powertrain technology lineup, to be deployed for the first time in the U.S. in the all-new, more powerful and fuel-efficient 2013 Honda Accord.

Honda will produce its technically advanced CVT on a new assembly line at Honda Transmission Mfg. of America, Inc. in Russells Point. The modernization and expansion of the Russells Point transmission plant, along with the new pulley component production at the Anna plant, will create 150 new jobs.

Since November 2010, Honda has announced new investments exceeding $500 million in its two auto plants and two powertrain plants in Ohio.

"For decades, our two Ohio powertrain plants have worked together to deliver advanced products for our customers," said Hide Iwata, president and CEO, Honda of America Mfg., Inc. "The production of this new CVT technology puts the Buckeye State right in the middle of Honda's global strategy."

The new transmissions will debut in the all-new 2013 Honda Accord models that will come to market later this year. The Accord for the U.S. market is built only in Ohio at the Marysville Auto Plant.

"Applying Honda's new Earth Dreams Technologies in the production of engines and transmissions will greatly enhance the driving performance of Honda vehicles, and help us achieve fuel economy leadership in every segment over the next three years," said Iwata.

While the Anna plant prepares for its production launch, the Russells Point transmission plant will proceed with CVT production this summer. These transmissions require highly sophisticated pulley components. Initially, these components will be supplied from Honda operations in Japan, before CVT production for U.S. models is taken up by the Anna plant in 2013.

"Our associates have incredible experience and we are counting on them to help us introduce an even higher level of powertrain technology for our customers," Anna Engine Plant Manager, John Spoltman, said. "The new CVT technology will be mated with Honda's new Earth Dreams 2.4-liter direct-injection engine, which will also be produced here at the Anna Engine Plant."

Earth Dreams technology defines Honda's next-generation engine and transmission strategy to realize advanced levels of both performance and fuel efficiency. Introduction of the new CVT for mid-size cars, will improve fuel economy by approximately 10 percent compared with the current five-speed automatic transmission.

The new component production operation at Anna will utilize 84,000 square feet of plant space for lathing, heat-treating, grinding and subassembly of precision CVT pulley systems. With the capacity to manufacture 1.18 million V-6 and four-cylinder engines annually, the Anna Engine Plant is the largest automobile engine factory in Honda's global production network
At the Russells Point transmission plant, CVTs will be manufactured on a sophisticated assembly line that is being constructed as part of a $70 million, 200,000-square-foot expansion of the facility. An additional $50 million is being invested in a 75,000-square-foot expansion of the facility for additional aluminum casting operations to support the CVT assembly line.

Honda Transmission Mfg. of America currently employs 1,050 associates. In addition to automatic transmissions, the Russells Point plant also manufactures four-wheel-drive systems. Both plants manufacture the precision steel parts for engines and transmissions, and four-wheel-drive components.

Today's announcement continues a series of major initiatives by Honda in its Ohio operations. In January, the Acura luxury brand revealed that the all-new Acura NSX supercar will be developed in Ohio and built at a new manufacturing operation in central Ohio. And since November 2010, Honda has now announced more than $500 million in investments for advanced technologies and systems at it four existing Ohio plants.

Other major initiatives now under way include construction of on-site parts consolidation centers at Anna and East Liberty, a sophisticated new stamping press at the Marysville Auto Plant, and several major projects at East Liberty to expand assembly lines, implement new paint technologies and consolidate vehicle quality operations.

Source;

http://www.autonews.com/apps/pbcs.dll/article?AID=/20120201/OEM01/120209993/1424

Honda Cars : Honda President Ito Forecasts Year of ‘Complete Rebound' | 2013 New Honda Car Reviews 0

Jan. 27 (Bloomberg) -- Honda Motor Co. President Takanobu Ito forecast that business results at Japan's third-biggest carmaker will climb to the highest in at least five years, led by sales of Accord sedans and Civic compacts in North America.

Business results in the year ending March 2013 will recover to levels achieved before the failure of Lehman Brothers Holdings Inc. roiled global markets, as sales climb above 4 million vehicles for the first time, Ito said in an interview this week. Lehman filed for bankruptcy in September 2008, six months after Honda earned record annual profits.

“It will be the year of the complete rebound,” Ito said at the company's Tokyo headquarters. “Sales in North America will lead the recovery. We'll introduce a fully revamped Accord in the fall, and that will be a big plus to our sales.”

Ito's comments reflect a revival in confidence by Japanese automakers as they recover from a year plagued by natural disasters at home and in Thailand. Toyota Motor Corp., Asia's largest carmaker, said this week annual sales will be 100,000 units higher than it anticipated last month.

“Honda's targets are definitely aggressive, but the U.S. economy seems like it's going to recover to a better-than- expected level this year so it's likely for them to achieve it,” said Mitsushige Akino, who oversees $600 million at Ichiyoshi Investment Management Co. in Tokyo. “They've remodeled their best-selling cars, and we can expect strong sales in North America to help them regain market share.”

Reversal of Fortune
Honda fell 1.9 percent to close at 2,689 yen in Tokyo. It's gained 15 percent this year, the best performer among Japan's three biggest automakers. That's a reversal from 2011, when the stock's 27 percent drop made it the worst performer.

Honda's operating income, or sales minus the cost of goods sold and administrative expenses, will probably double to 586.6 billion yen ($7.6 billion) next fiscal year after shrinking 52 percent, according to the average of 24 analyst estimates compiled by Bloomberg. Earnings reached 953.1 billion yen, 851.9 billion yen and 868.9 billion yen, respectively, in the years before Lehman's bankruptcy.

Ito, 58, is counting on the U.S. market to drive growth.

Redesigned Accord
The redesigned Accord sedan, the Civic and CR-V sport- utility vehicle will help Honda increase U.S. sales 24 percent to 1.43 million units in 2012, Ito said. Sales in the market, Honda's largest, declined 6.8 percent last year, led by a 17 percent drop in deliveries of the Accord. The Accord is Honda's best-selling U.S. model, followed by the Civic.

Ito ruled out any major overhaul of the Civic after the current version of the sedan, which failed to receive the “recommended” status its predecessors had from Consumer Reports magazine, was the best-selling model in the compact-car segment in the last three months of the year.

Honda's new models will give it an edge in the U.S. over South Korea's Hyundai Motor Co., which is producing close to full-capacity, said Kota Yuzawa, a Tokyo-based analyst at Goldman Sachs Group Inc. That puts Honda in “good position” to regain lost market share, he said.

Honda may not be alone. Japan's three biggest carmakers are poised to gain market share this year at the expense of U.S. producers led by General Motors Co. and Ford Motor Co., according to five analysts surveyed by Bloomberg.

‘Unstoppable' Motorization
In China, the world's largest auto market, Honda expects its sales to rise more than 20 percent to 750,000 units in 2012 after they shrank for the first time in 2011 in a slowing market, Ito said. The company plans to introduce three gas- electric hybrid models in the country this year, he said.

“China is still strong,” Ito said. “Once motorization captures a market, it's unstoppable.”

China's total vehicle sales -- including cars, trucks and buses -- grew 2.5 percent to 18.5 million units last year, according to the China Association of Automobile Manufacturers, trailing growth in the U.S. for the first time in at least 14 years. Honda expects the market to expand to 20 million this year, or “just above” China's economic growth, he said.

In Thailand, where the country's worst floods in almost 70 years disrupted assembly plants and supply of components in 2011, Honda plans to resume production starting in April, Ito said. Damages stemming from Thailand forced the company to scrap this fiscal year's profit forecast.

Reorganizing Factories
As part of Honda's strategy of producing cars where they are sold, the company plans to reorganize its Japanese factories so they focus on production of minicars, a growing category that makes up about 40 percent of the nation's auto demand, Ito said. Orders for the N Box minicar in Japan reached 27,000 units in its first month of sales, more than double Honda's original target.

Minicars, defined as vehicles no longer than 3.4 meters (11 feet) in length, will account for 40 percent of Honda's Japan sales, compared with 25 percent now, Ito said.

Honda joins Toyota and Nissan in reorganizing operations as the yen, which has gained against the world's 16 most-traded currencies for two straight years, erodes the value of exports. Honda plans to boost the portion of vehicles sold in the same region they're built to as high as 80 percent, Ito said. In 2010, Honda sold about two out of three Japan-built cars in the country.

Officials at Toyota and Nissan this month have also echoed plans to increase their portion of vehicles sold in the region where they're assembled.

“Minicars will be key for us in Japan in the next five years,” Ito said.

Source;
http://news.businessweek.com/article.asp?documentKey=1376-LYALB80UQVI901-3I262TT8I3HDDBE46BK1GAN789

Honda Cars : Honda plans to make lighter vehicles - Nikkei | 2013 New Honda Car Reviews 0

Dec 24 (Reuters) - Honda Motor Co plans to adopt new design and assembly methods to make its vehicles lighter, the Nikkei business daily reported.

Some of Honda's new manufacturing methods involve welding outer panels to the frame, rather than assembling the ceiling, side and other panels, to reduce the use of bolts and reinforcing materials, the Japanese newspaper said.

Honda plans to spend tens of billions of yen to revamp production lines in Japan and overseas, using the new methods on small vehicles initially, then on all models within several years, the Nikkei said.

The automaker has begun steps to scale back on materials, parts and processing steps for producing its minivehicle, the N Box, which was launched last Friday, the daily said.

Honda modified one of the two production lines that assemble the N Box at its Suzuka plant in Mie Prefecture, the Nikkei said. The move will help make the N Box 10 percent lighter and lower manufacturing costs, the paper added.

By making lighter and cheaper automobiles, the carmaker aims to fast track its advance into emerging markets, which is one of its top priorities, the newspaper said.

Source;
http://www.reuters.com/article/2011/12/23/honda-idUSL3E7NN2XB20111223

Honda Cars : Honda CEO Interview | 2013 New Honda Car Reviews 0

Honda Cars : Honda is a blessing | 2013 New Honda Car Reviews 0

It seems there is no shortage of discouraging economic news, but there are times when the best thing we can do is sit back and count our blessings rather than our problems.

Alabama has certainly benefited from assembly plants of three of the brightest jewels of the automotive industry in recent decades, and the crown jewel of those three lies in Talladega County.

The Economic Development Partnership of Alabama lists 19 manufacturing facilities for automobiles, light trucks and heavy trucks in the southeastern states. Of the three manufacturers within the state — Honda, Mercedes and Hyundai — Honda boasts the largest workforce with 4,000 associates, with Mercedes having 2,800 team members and Hyundai 2,700. Honda’s payroll exceeds $250 million annually.

Honda Manufacturing of Alabama alone contributes $4.5 billion annually to the Alabama economy, representing three percent of the state’s Gross State Product, according to the EDPA study. The EDPA lists Honda’s capital investment in Alabama at $1.4 billion.

In addition, 38 Tier 1 suppliers have located operations in Alabama, bringing an additional 4,000 jobs to the state.

Honda is hosting a celebration Monday, marking the 10th anniversary of the day the first vehicle rolled off of the production line at the plan in Lincoln.

Gov. Robert Bentley plans to be there to help celebrate the milestone with HMA president Tom Shoupe, Congressman Mike Rogers, community leaders and other Honda executives.

The event is the next milestone in the history of Honda in Alabama.

That began in 1999 when Honda selected Lincoln as the site of its next vehicle and engine plant, with an initial projection of employing 1,500 associates.

That was followed by a groundbreaking ceremony for the plant April 25, 2000, and the hiring of the first HMA employees that same year.

The first “customer-ready” Odyssey minivan rolled off the line November 14, 2001, six months ahead of schedule.

Since that time Honda added production of the Pilot sport utility vehicle at the plant, the innovative Ridgeline pickup and the Accord V-6 sedan.In September of last year, Honda announced it’s Alabama plant had built its two millionth vehicle and V-6 engine. Honda has announced hundreds of millions of dollars in expansions to the plant at Lincoln, and earlier this year announced plans to built the Acura MDX luxury sport utility vehicle in Alabama beginning in 2013.

Just this month, the company announced there would be no layoffs in spite of a production slowdown caused by flooding that stopped production of parts in Thailand, just as it did earlier this year when a tsunami interrupted the supply line in Japan.

Honda’s achievements are certainly worthy of celebrating as blessings for our state—blessings worth counting.

Source;
http://www.dailyhome.com/view/full_story/16417252/article-Honda-is-a-blessing?instance=home_opinion

Honda Cars : Update #2: Impact of Thailand Flooding on Honda’s Automobile Operations in North America. | 2013 New Honda Car Reviews 0

11/14/2011

CR-V to Begin Mass Production in Ohio

The all-new 2012 Honda CR-V will begin mass production in the U.S. on Tuesday, Nov. 29 at the East Liberty Auto Plant in Ohio. As announced last week, CR-V will go on sale as scheduled in mid-December, despite ongoing production adjustments at Honda’s U.S. and Canadian plants brought about by the persistent flooding in Thailand.

Production Adjustments Continue

Due to continued flooding in Thailand, a number of Honda suppliers have been unable to maintain the supply of parts to Honda. As a result, Honda will continue managing the parts supply in North America by taking the following actions:

• Honda will continue temporary production adjustments at all six Honda auto plants in the U.S. and Canada.
• Auto production rates will vary from plant to plant, but some plants will produce at rates above the previously announced 50 percent of the original plan through Nov. 30.
• All plants in the U.S. and Canada are expected to produce at normal levels on Dec. 1 and 2. Production plans after Dec. 2 will be announced in the future.

In 2010, 87 percent of the Honda and Acura automobiles sold in the U.S. were produced in North America. While most of parts and materials used to produce these products are purchased from North American suppliers, a few critical electronic parts are sourced from Thailand and other regions of the world. Honda is working closely with its suppliers in Thailand and throughout its global network to reestablish the flow of parts for the products made in North America.

Honda remains focused on minimizing the impact to its associates and their families and plans no layoffs at any of its North American facilities. Non-production days will continue to be treated as "no pay, no penalty," meaning Honda associates can report to work, use a vacation day, or take the day off without compensation or penalty.

Honda deeply regrets any inconvenience this may cause to its customers.

Source;
Honda North America

Honda Cars : Honda: Dealer Inventory of 2012 Honda Civic Is Virtually Zero | 2013 New Honda Car Reviews 0

Just the Facts:
-Sales of the 2012 Honda Civic appear to be stalled, with the Japanese automaker reporting that October sales of the Civic were down 2 percent.
-Honda says it's because dealer inventory is "virtually zero" due to natural disasters in Asia, including the Japan earthquake and tsunami in March and recent flooding in Thailand.
-"Dealers can't sell cars that they don't have on their lots," a Honda spokeswoman told Inside Line on Thursday.

TORRANCE, California — Sales of the 2012 Honda Civic appear to be stalled, with the Japanese automaker reporting this week that October sales of the Civic were down 2 percent.

Honda tells Inside Line that it's not because the redesigned small car, which debuted with much hoopla at the 2011 New York Auto Show, is not resonating with buyers or needs better direction with advertising or social media efforts. The Japanese automaker says it's because dealer inventory is "virtually zero" due to natural disasters in Asia, including the Japan earthquake and tsunami in March and recent flooding in Thailand.

"Dealers can't sell cars that they don't have on their lots," said Gina Jorge, assistant manager for American Honda Motor Co. public relations in response to an e-mailed query from Inside Line on Thursday. "In fact, most dealers are selling Civics nearly as fast as they receive them."

On November 1 Honda said Civic posted October sales of 16,173, down 1.9 percent from the previous October. It sold 480 units of the 2012 Honda Civic Hybrid, a decline of 24.7 percent from the previous October.

Honda reported year-to-date Civic sales of 183,557 versus 215,393 in the same period in 2010. But it is unclear how many of the 183,557 were 2012 Civics. The various models of the 2012 Civic have been gradually rolled out this year. The sedan, coupe and hybrid versions debuted on April 20; the Civic HF debuted on May 10; the Civic Si coupe and sedan debuted on May 24 and the Civic Natural Gas model debuted on October 18.

Honda said it does not break out sales by model year and does not break out sales by various models with the exception of the Civic Hybrid. It has projected sales of approximately 2,000 Civic Natural Gas models per year in the near term, double the amount sold in recent years.

"Civic sales are down for one simple reason," wrote Chuck Schifsky, an American Honda Motor Co. spokesman in response to the e-mailed query from Inside Line. "Low dealer inventory as a result of a shortage of small parts caused by the Great East Japan Earthquake earlier this year which nearly halted production of the 2012 Civic."

Schifsky noted that flooding in Thailand "will cause another disruption in production."

"It's still too early to say how deeply this will impact production of the '12 Civic," he added. "But because dealer inventory of Civics is virtually zero and dealers are selling the few Civics they are getting almost as soon as the cars arrive, any disruption in Civic production will not help the situation."

He added: "We need to build more Civics and get them to our dealers. This is a supply problem, not a demand problem. There just aren't any Civics on dealer lots."

When the Japan earthquake hit, production of the Civic was just ramping up. Approximately 90 percent of the vehicles Honda sells in North America are built in North America, according to the automaker. The bulk of Civic models, including the sedan, are built in Greensburg, Indiana. Honda began a second production shift last week there, which boosts production to its full 200,000-unit annual capacity.

"While the majority of the parts are sourced in North America, there are a small number of parts that are sourced from Japan," Schifsky wrote. "This is what caused the vehicle shortage."

Honda announced earlier this week that flooding in Thailand will cause another disruption in production, likely delaying the debut of the 2012 Honda CR-V.

"It's still too early to say how deeply this will impact production of the '12 Civic," Schifsky said.
Inside Line says: Earthquakes and floods mean the 2012 Honda Civic is off to a rocky start in the marketplace.

Source;
http://www.insideline.com/honda/civic/2012/honda-dealer-inventory-of-2012-honda-civic-is-virtually-zero.html

Honda Cars : Honda cranks up output as auto sector sees comeback | 2013 New Honda Car Reviews 0

The engine of the Ontario economy is starting to hum again, propelled mainly by a return to full production at Japanese auto makers’ plants.

Honda of Canada Manufacturing (HMC-N30.00-0.67-2.18%) in Alliston, Ont., said Wednesday that it will begin cranking out 1,600 vehicles a day in November, more than two years after it cut production during the recession and about eight months after it slashed output because of disruptions caused by the March 11 earthquake in Japan.

The two Honda plants in Alliston, located about 90 kilometres north of Toronto, will also operate on two Saturdays a month – likely until at least the end of the year – mainly to build more models of the compact Civic. The top-selling passenger car was redesigned for the 2012 model year, and production and sales were just starting to gear up when the earthquake created chaos in the supply chain and made it difficult for auto makers to get enough parts.

Honda’s move means that two-thirds of Canada’s car and light truck assembly plants will be running on overtime. That’s a major boost for a Canadian economy still in the midst of an anemic recovery from the recession and one in which gross domestic product fell by 0.4 per cent in the second quarter.

“The key point is that auto production did slow significantly in the summer and it did affect the overall economy, but now it is back in full swing,” said Carlos Gomes, a Bank of Nova Scotia economist who follows the auto industry closely.

There were signs in September that the worst had passed, noted industry analyst Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc., of Richmond Hill, Ont.

Car production at Toyota Motor Manufacturing Canada Inc. (TM-N66.91-0.43-0.64%) in Cambridge, Ont., rose 19 per cent that month from year-earlier levels, Mr. DesRosiers said, compared with a 6.2-per-cent decline in the first nine months of the year.

Since then, Toyota’s other plant in Woodstock, Ont., has returned to a full, two-shift operation and is also working overtime to boost output of the RAV4 crossover.

Nonetheless, when compared with vehicle production in the United States and Mexico, “we’ve been the laggard all year and remained so in September,” Mr. DesRosiers said.

While the assembly industry is located entirely in Ontario and most of the supply base is in that province as well, the production rebound will also contribute to national economic growth, Mr. Gomes said.

The rebound will add almost a full percentage point to the annual growth rate in the fourth quarter, he said. His forecast is that the economy will grow by 1.2 per cent this quarter.

Japan-based auto makers want to increase their inventories, which stood at just 40 days of supply in the U.S. market in September, compared with the usual figure of about 60 days. In addition, U.S. sales jumped by a surprising 10 per cent in September. That means all auto makers want to make sure they have enough vehicles on U.S. dealers’ lots in the fourth quarter.

The U.S. market is the destination for 80 per cent of the Civics, Acura MDX and ZDX models that roll off the Alliston assembly lines.

The shortage of Civics since March means there are several thousand back orders for the car at Canadian dealerships, Jerry Chenkin, executive vice-president of Honda Canada Inc. told reporters at the Alliston plant on Wednesday. Some customers have been waiting as long as 45 days, he said, but the increase in production should cut that to 30 days.

The Civic has been the best-selling passenger car in Canada for the past 13 years and led the second-place Hyundai Elantra by 1,122 vehicles at the end of September, despite a 12-per-cent sales decline in the first nine months of 2011.

Source;
http://www.theglobeandmail.com/globe-investor/honda-cranks-up-output-as-auto-sector-sees-comeback/article2206417/