Honda Pakistan Sales

Pakistan’s Automobile Industry has always played a commendable role in the field of manufacturing, says a press release. Honda Atlas Cars (Pak) Ltd employs a staff of more than 1000 people and has achieved the mark of selling more than 180,000 units in the local market. Honda has not only played a positive role in the economical stability of the country but has also contributed an amount of more than Rs 61.65 billion as taxes to the Government exchequer. The company has paid 225pc cash dividends and 75pc bonus shares till now to its shareholders.

Honda's Japan Fallout Continues to be Felt

Honda's domestic output fell almost 51% on the year to more than 43 000 units in June, down again for the seventh straight month. Exports fell 60% to 12 561 while domestic sales fell 36% to 38 780 units. Overseas output fell 42.1% to 125 084 units while domestic production between January and June fell 45.7% to 266 473 units.

Honda's Hiring Spree

Honda has hired more than 100 of the 1 000 people it is planning to add by October to introduce a second production shift at its Greensburg plant west of Cincinnati. Honda currently employs 1 000 workers that produce Civics at the Indiana plant. Applicants do not need experience but must be 18 and have a high school degree and live in 20 targeted countries. For more information, visit, http://www.indiana.honda.com

Honda Korea

Honda is attempting to regain its number one position in the Korean import market by importing cars made in Europe, helping to take advantage of the free-trade agreement between Korea and the EU. Honda produces the CR-V and Civic in the U.K. and bringing them into Korea will create a price advantage for Korean customers because of the lowered tariff on imported cars. Honda's market share has steadily dropped from a booming share in 2008 and continues to fall in Korea with only a 16.7% market share, down almost 27%. 

In 2008, Honda sold more than 10 000 units and was the top importer, selling almost 12 400 vehicles. "The reason why sales have struggled recently is not due to our own quality or performance but due to external factors such as the high yen and the earthquake in Japan," Chung Woo-young, Honda Korea CEO states. New models will also be introduced in Korea later this year to help bring in customers. The CR-Z, the new redesigned Civic and Civic Hybrid are just some of the models that Honda Korea's CEO is hoping to woo in buyers. 

Chung hopes to double the sales in the second period of this year, aiming to sell about 3 300 vehicles and within a few years, be back to its 2008 levels by utilizing aggressive strategies.

Honda Dongfeng's 1 Millionth Vehicle

Dongfeng Honda's millionth vehicle has rolled off the production line, cnhan.com reported today. The joint venture has finally entered the esteemed circle of Chinese manufacturers making over a million vehicles.

Since its establishment in 2003, Dongfeng Honda has followed a strategy of promoting large-scale investment, hiring top-of-the-line production staff and manufacturing high-quality products. Dongfeng Honda's vehicles sales have brought in a total of 18.59 billion yuan ($2.9b) in taxes, becoming Wuhan province's largest tax earner.

Chen Binbo, deputy executive president of Dongfeng Honda, was pleased with the milestone achievement. He hopes that the JV will continue to bring products to satisfy customer demand, and will be bringing an additional eight models in the upcoming months.

Three of the JV's models, the CR-V crossover SUV, Civic sedan and luxury Spirior have become leaders in their respective segments.

The Honda Promise (available only in the United States)

The Honda Promise
- For both existing and new customers, there is a Featured Special Program. If the chosen vehicle is not available, customers are offered the current lease terms or current APR specials (on eligible vehicles) at the future delivery date (they also may choose the best available offer at the time of delivery).
- There also is a $500 Loyalty Offer for existing Honda customers with a lease or Lease Purchase Program purchase of an eligible new vehicle through Honda Financial Services.
- Existing Honda Financial Services lessees will receive a Lease Extension (not applicable with an existing Lease Purchase Program).
- Existing Honda Financial Services lessees also will receive a complimentary 12-months/12,000-mile, zero-deductible Honda Care Vehicle Service Contract (not applicable with an existing Lease Purchase Program or for lessees in the state of Florida).
The Honda Promise Program runs now through Aug. 1. Customers who commit with a buyer's order in July have until the Commitment End Date of Oct. 31, 2011 to take delivery.

A Milestone for Honda Plants

Honda's Alliston plant is one of the 10 plants with zero waste

10 of Honda's 14 North American plants have achieved zero-waste-to-landfill status. The remaining four are functioning with “virtually zero” waste-to-landfill, according to the company, which said it has achieved one of the most important targets in its longstanding “Green Factory” initiative.

Honda’s plant in Lincoln, Alabama became the first zero-waste-to-landfill auto plant in North America when it began production in 2001. Another plant in Greensburg, Indiana also started production similarly in 2008.

Waste sent to landfills has been reduced at Honda’s North American plants from 28.4 kg per vehicle produced in fiscal-year 2001 to an estimated 0.8 kg in the current fiscal year 2012. Among all of its 14 plants, Honda now sends less than one-half of one per cent of all operating waste to landfills, and either recycles or uses the remainder for energy recovery.

“This is an important achievement and a tremendous reflection on the commitment and continuous effort of Honda associates throughout our company over the past ten years to reduce waste from Honda’s production operations,” said Karen Heyob, manager at Honda of America Manufacturing. “This is an even more significant achievement when you consider that we also produce in North America the engines and transmissions that power our products.”

The only two remaining landfill waste streams in all of Honda’s North American production activities are paper, plastic and food waste from cafeterias and break rooms at automobile and motorcycle plants in Mexico, where there is no more environmentally responsible means of disposal; and a non-recyclable byproduct of the paint pretreatment process for aluminum body panels at two Ohio auto plants. Honda is working with the Environmental Protection Agency to identify an alternative means of disposal.

Honda Australia Success

Honda offers a version of the UK 5-door Civic badged as a Civic Si

Honda Australia announced that June 2011 retail sales far exceeded expectations with the CR-V leading the Compact SUV category, the Odyssey leading the People Movers Under $55 000 category and Honda itself ranking second in the Light Model Under $25 000 and with total sales of 4 162 vehicles in June 2011.

Honda Australia's Senior Director, Mr. Lindsay Smalley says that these boosts mean Honda is on its way to regaining its market share again, "Committed to offering our customers engineering excellence and worry-free motoring with an excellent value for money proposition and a fun driving experience, we are delighted that consumers are embracing Honda in Australia. Our business strategy was to add value for customers by delivering products with better specs and adjustments to price where necessary, which has proven effective."

The CR-V sold 675 units with the Odyssey selling 104 units and the Jazz selling 1 074 units, all fantastic results for Honda Australia.

Honda Siel Cars of India June 2011 Sales

Honda Siel Cars of India is reporting sales for June 2011 at 3 455 units, down almost 25% compared to last year. Honda's lack of production and vehicle availability continue to plague the manufacturer. However, City sales are up 53% compared to May 2011 at 2 802 units. 361 Jazz models were sold along with 175 Civics, 103 Accords and a paltry 14 CR-Vs.

American Acura/Honda Sales for June 2011

Honda posted June sales of 83,892 vehicles, a decrease of 24.3 percent, based on the daily selling rate, the company announced today. American Honda year-to-date sales reached 607,442, an increase of 1.6 percent versus last year, based on the daily selling rate. Although production limitations caused by the March 11 earthquake in Japan continued to improve, reduced vehicle supplies adversely affected June sales results.

Honda Division posted June sales of 75,184, a decrease of 24.5 percent versus June 2010. The Civic was the top-selling Honda model for June with sales of 17,485, a decrease of 36.5 percent compared to last year. The Accord posted sales of 17,107, a decrease of 38.6 percent. Sales of the sub-compact Fit increased 20.0 percent to 4,912, demonstrating continued strong demand for versatile, fuel-efficient vehicles.

Acura Division recorded June sales of 8,708, a decrease of 22.8 percent versus June 2010, and year-to-date sales of 60,680, a decrease of 1.4 percent. The MDX was the top-selling Acura model for the month with sales of 3,374, down 15.7 percent. 

Canadian Acura/Honda Sales in June 2011

Combined June sales of 9,584 units by the Honda and Acura divisions represented a 19% decrease over last year's sales.  The Honda Automobile Division reported June sales of 8,451 units, down 19% from last year. The Acura Division reported June sales of 1,133 units, down 21% over last year. "Once again, our sales results were impacted by lack of supply for some models, for which we apologize to our customers," said Jerry Chenkin, executive vice president of Honda Canada Inc. Honda Canada Inc. has sold more than 3.4 million Honda and Acura passenger cars and light-duty trucks in Canada over the past 38 years.  More than 96% of the Honda and Acura vehicles sold in Canada in June were produced at the company's assembly plants in North America, up from 92% for the same month last year.

Disappointing Forecast

Honda's annual operating profit forecast is not conservative, given the yen's strength and soaring raw materials prices, the automaker's chief financial officer said on Tuesday.

Japan's No.3 automaker this month forecast a worse-than-expected 65 percent fall in annual operating profit to 200 billion yen ($2.5 billion) for the year to March 2012. Many analysts consider its guidance overly conservative, with consensus forecasts putting the profit at 412 billion yen, according to Thomson Reuters I/B/E/S.

"I don't think assuming 80 yen to the dollar is conservative at all," Fumihiko Ike told a small group of reporters in an interview, explaining the expected sharp drop in earnings. 

"The same goes for raw material prices."

Ike said potential shortages of electricity in Japan following the nuclear disaster caused by the March 11 earthquake and tsunami likely meant resources-poor Japan would need to step up its imports of natural gas and other energy sources.

"And for that, a stronger yen is better," Ike said. "We in the manufacturing sector may cry out for relief but...I suspect such forces may be at work."

Honda's assumption that a rise in raw material prices would have a negative impact of 80 billion yen on profits this year was also not overly pessimistic, he said.

"Before, it used to be about rising precious metals prices. Now, on top of that, we're dealing with an incredible surge in rare earth prices as hybrid cars become more popular," he said.

Precious metals such as platinum are used in catalytic converters needed to reduce tailpipe emissions, while rare earth elements such as dysprosium and neodymium are needed for electric motors fitted in fuel-efficient hybrid cars.

Honda said on Tuesday it had received 12,000 orders for the new Fit Shuttle station wagon in Japan, about three times the monthly sales target. Of that, 86 percent chose the hybrid option.

Rare earth prices have been soaring since China, which controls more than 95 percent of global supply, restricted exports late last year. The China offer price of dysprosium now hovers around $3,600-$3,800 a kg, up from $300 a year ago, and neodymium is traded above $450, up from $45.

Honda's cost and sales assumptions translate into a cost increase of around 24,000 yen per car this year. Honda is expecting a 6 percent drop in its global car sales to 3.3 million vehicles.

ACURA DRIVE

Honda's 200 billion yen profit forecast would yield an operating margin of 2.4 percent, less than half of rival Nissan Motor Co's projection of 4.9 percent for 2011/12.

Nissan on Monday mapped out a business plan to boost that margin to a sustainable 8 percent within six years, partly fuelled by a global expansion of the Infiniti luxury brand.

Ike said Honda was also preparing a big model offensive for its premium Acura brand, which sells about the same number of cars as Infiniti, or around 160,000 a year.

"We've got quite a number of new models in the pipeline," Ike said, declining to provide details. He added, however, that unlike Nissan, Honda had no plans to spread the brand into more markets. Honda sells Acura cars in North America and China.

Honda Jacks Up Chinese Plant Wages

Honda has hiked wages around 30% at a Guangdong Province autoparts plant that was plagued by work stoppages last year, it was revealed Monday.

Average monthly wages for assembly line workers have increased as much as 611 yuan to 1921 yuan or around 24000 yen at the automaker's transmission factory in Foshan. An agreement was struck with labor this past March, with the pay raise taking effect the following month.

In the wake of the May 2010 strikes, the automaker lifted starting pay by 25%. Although raises have averted strikes, Honda has seen its production costs swell. The latest hike is due to a rise in prices and the local minimum wage.

The Japanese Top American-made Cars List

Honda's Accord took 2nd place in a ranking of credibility in claiming Made in the USA. The American Made Index ranks vehicles based on the parts percentage that are made domestically, location of assembly and the amount of sales to U.S. buyers. Honda's Odyssey took 5th place.

"In today's global economy, there's not an easy way to determine just how American a car is," Patrick Olsen, Cars.com's editor in chief said. "Most cars built in the U.S. are assembled using at least some parts that come from somewhere else. Additionally, many U.S. automakers assemble vehicles in Canada and Mexico while foreign automakers have opened plants on U.S. soil."

Canadian Milestone

Honda Canada announced today the Acura division just sold its 400,000th vehicle in Canada since its launch in 1987.

"And after nearly 25 years of sales in Canada, four of every five Acura vehicles are still on the road, which is a testament to Acura's renowned durability," said Jerry Chenkin, Executive Vice President, of Honda Canada Inc. in a press release this morning. "Another important fact is that of the 400,000 Acura vehicles sold in Canada, more than one-third of those were built right here in Canada."

Honda Has Least Insurance Claims in the UK

MB&G Insurance in the UK has named Honda the most reliable vehicle after a compilation of insurance claims put together from the past 12 months. Honda generated the least amount of insurance claims. Honda had the fewest cover payouts following vehicle incidents.

Honda Canada Production Update

Honda Canada has informed its workers that because of an improving parts situation for the 2012 Honda Civic, the plant at Alliston will be able to resume 2 shifts in September. Plant 1 will be back to 800 units per day by the end of September. Plant 2 which produces the Civic, Acura MDX and ZDX will be back to full production in mid-October and following that, will be able to ramp up its production values if needed. Honda is also able to restart its recruiting process and are now accepting applications for contract employment.

Sign of things to come ...

Pacific Honda, a dealership in North Vancouver, British Columbia, Canada

Honda is telling its American and Canadian auto dealers to honor discount offers on vehicles that they do and do not have in stock. Honda realizes that they have low inventories on models such as the Civic and are going forth with these discounts because they do not want to send people away without taking care of them. The offer is not available on cars built in Japan such as the Honda Fit and the Honda Insight. Acura dealerships across North America are also making a similar offer. Discounts are given to encourage existing inventory sales. Earlier this month, Honda warned that its operating profit could fall as much as 65% this year due to the Japan earthquake because of the delays in launching several models such as the Fit Shuttle and major problems with the launch of the new 2012 Civic. Toyota is equally hurt in this battle while the Korean and American manufacturers have gained at the Japanese's loss.

Honda's New Carbon Emissions Goal

Honda is looking to set a goal of reducing carbon emissions from its vehicles by 30% by the end of 2020. Honda says it will attempt this goal by reducing greenhouse gases produced during the production of its vehicles along with pushing the development of hydrogen vehicles. To a previous goal that Honda made in 2006, to reduce CO2 emissions by 10% by 2010 has been accomplished. Best of luck to Honda for this endeavor.

Honda Tops JD Power Study

Honda has earned its best ranking, at 2nd place in a recent J.D. Power and Associates Initial Quality Study for 2011. Honda led the industry having 7 models earn the top initial quality spots including the Honda Accord and Honda Civic. Honda's premium brand, Acura was next in line, topping out at 3rd place. This is the first time since 2002 that an automaker has won to the amount 7 1st place awards out of 11 models. Honda received 2nd overall but 1st among non-luxury brands.

Honda's Ridgeline earned the highest in the truck category while the Odyssey improved upon its initial quality score from last year's model. The Element and the CR-V earned 1st and 2nd place respectively while the mid-size crossover Accord Crosstour also earned the top initial quality. The Honda Fit and Honda Insight joined the list as well.

The Initial Quality Study surveys new car buyers to measure the initial quality of new vehicles after the first 90 days of ownership, it is recognized as a measure of vehicle quality and owner satisfaction. The study recognized Honda's Indiana, Ohio and Japan plants for superior manufacturing quality.