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Why? To be able to buy the new one? Because if the NSX was any indication, even if the new s2000 is a home run, the original s2000 will become more desirable and more expensive. Selling the original should only happen if it's a desperate need for money.
Why? To be able to buy the new one? Because if the NSX was any indication, even if the new s2000 is a home run, the original s2000 will become more desirable and more expensive. Selling the original should only happen if it's a desperate need for money.
...or lack of space to store yet another car which is what I'm running into.
I highly doubt the new s2000 will be light years better than the original. Better overall? Possible. Way better? Doubtful. Why you'd be interested in selling a car that is now climbing in value, for one that is guaranteed to plummet in value is beyond me. Maybe the 2G s2000 will go up in value one day... but are you willing to wait 15-20 years?
It's your hard earned money... but financially, your decisions don't make much sense especially since it sounds like you want to ditch your s2000 prior to the new one coming out. You're just assuming the 2G will be great. With that being said, you don't see people fighting tooth and nail for a first year AP1, but rather, people are fighting for the later and improved AP2.
Hey, if you want to be the first to own it, so be it... but you'll be paying one hell of a price for it.
If the NSX and even the Civic (as mentioned in the other thread) are any indication, this S2000 successor will outperform it in almost every way.
It will probably be quite different as well.
Really though, the S2000 is almost a 20 year old design. I feel that people will be disappointed with what Honda delivers initially (if they actually do) only to discover the brilliance behind it later.
It remains to be seen if the next s2000 actually goes MR, as Honda vaguely hinted at previously.
Ok, fine, if that happens, go sell your s2000, Sam. I can understand why you would then. It remains to be seen if it would be sold with an A or an H, though. And if it does have an A, would it have electric motors? And be AWD?
Naw, I hope it's not Sport Hybrid AWD. But I wouldn't be opposed to adding an electric motor to the engine, and if it ends up being turbo'd, maybe another electric motor to spool it faster? Shiiiiiet.... there's a lot of stuff Honda could do. I highly doubt they would keep it high revving NA.Maybe high revving turbo, though.
I highly doubt the new s2000 will be light years better than the original. Better overall? Possible. Way better? Doubtful. Why you'd be interested in selling a car that is now climbing in value, for one that is guaranteed to plummet in value is beyond me. Maybe the 2G s2000 will go up in value one day... but are you willing to wait 15-20 years?
It's your hard earned money... but financially, your decisions don't make much sense especially since it sounds like you want to ditch your s2000 prior to the new one coming out. You're just assuming the 2G will be great. With that being said, you don't see people fighting tooth and nail for a first year AP1, but rather, people are fighting for the later and improved AP2.
Hey, if you want to be the first to own it, so be it... but you'll be paying one hell of a price for it.
If I sold mine, to be honest, I don't think I'd buy the new one unless it came with more of the creature comforts and NVH reductions that make up a modern car. The S2000, as fun as it is, gets old when you take it for a multi-hour drive down the freeway. Sure, blasting through curvy roads is an absolute delight...but that's like 5% of the driving I do. And at this point, even the modern Civic Si is better (and faster) at blasting through those corners than even the CR.
I'm not sure though. Every time I think about selling, I go drive it and immediately decide otherwise. I'll make a call next year though. Also, I don't think I'd get another convertible either. My next convertible will be a Wrangler.
If I sold mine, to be honest, I don't think I'd buy the new one unless it came with more of the creature comforts and NVH reductions that make up a modern car. The S2000, as fun as it is, gets old when you take it for a multi-hour drive down the freeway. Sure, blasting through curvy roads is an absolute delight...but that's like 5% of the driving I do. And at this point, even the modern Civic Si is better (and faster) at blasting through those corners than even the CR.
I'm not sure though. Every time I think about selling, I go drive it and immediately decide otherwise. I'll make a call next year though. Also, I don't think I'd get another convertible either. My next convertible will be a Wrangler.
Just wait until you actually sold yours.... then you will know....
i meant when you sold yours, you will truly appreciate it.
All the comfort that you thought you wanted or anything else is not comparable.
Oh, yeah you're probably right. I don't know though, I see cars as experiences and one (that I'd buy at least) isn't the same as another. So if I did sell, it would be for a different experience not for a replacement.
Yes. But i did not have a lot of choices with the 2nd one, since it was falling apart, literally for a 70k miles car. Too many issues with the car mechanically and cosmetically. So much for Honda Certified Used car.
TOKYO — Honda CEO Takahiro Hachigo has joined the chorus of global executives sounding the alarm about the seismic changes looming over the auto industry.
But he is vetoing one common strategy for confronting that change: There will be no capital tie-ups for Honda.
"We do have a sense of crisis," Hachigo told Automotive News last week at the automaker's global headquarters. "Things are changing drastically. So we should not be late in responding.
"But," he emphasized, "it's not the case where we have any plans for such equity holdings."
Hachigo's rejection puts Honda — a medium-size player globally — on a different course than its two nearest competitors, Toyota Motor Corp. and Nissan Motor Co. Toyota and Nissan have built auto empires by taking shares in smaller competitors. Toyota has stakes in Subaru, Mazda and Isuzu as well as a partnership with Suzuki. Nissan owns a controlling stake in Mitsubishi on top of its global tie-up with Renault and its affiliated companies.
Honda remains stubbornly independent in an age of consolidation.
But even as Hachigo rules out cross-ownership arrangements, Honda's go-it-alone days are coming to a close, with the industry beset by a rush of new technologies and new competitors. Honda's revised strategy calls for loose partnerships to cover its weak spots, and it has been signing deals at a steady clip this year. Hachigo said that will continue.
"Next year, too, we will build such partnerships speedily," he said.
Hachigo's assessment came just days after his company announced it will partner with SenseTime Group, of China, to develop artificial intelligence.
That followed an announcement last month that it will team with Japanese telecom giant Softbank Corp. to research superfast 5G next-generation mobile networks for use in vehicles.
The push continues at next month's CES in Las Vegas, where Honda's high-tech incubator program, Honda Xcelerator, will announce a raft of new startups it plans to support.
Honda Xcelerator exemplifies the new mantra at Honda. The program intends to canvas the globe for up-and-coming potential partners, seeking expertise the old automaker lacks — in fields such as energy innovation, smart materials, robotics and autonomous vehicles.
Honda's outreach kicked off this year. It said it would partner with Hitachi Automotive Systems to produce and sell electric motors for a future wave of electric vehicles, as well as form a joint venture with General Motors to build costly hydrogen fuel cell stacks for green vehicles at a factory in Michigan.
Hachigo's comments echo those of other leaders, such as Toyota President Akio Toyoda, who said last month that his company faces a now-or-never race "about surviving or dying."
But Hachigo dismissed any notion his company's future was at stake.
"We don't think it's business as usual," Hachigo said. "But we must recognize our strengths. If we continue to play to our strengths, we can gradually adapt to these changes and make whatever changes are necessary."
Honda's top strength is a product base extending beyond automobiles to motorcycles, power products, robots and even jet aircraft, he said. Through those offerings, Honda commands the loyal following of more than 30 million customers worldwide, he said.
In a move that underscored Hachigo's resolve to change with the times — regardless of the pain — the Honda boss in October took the rare step of shuttering a Japanese assembly plant. In announcing the closure of its aging Sayama factory, Honda said it will rearrange its domestic manufacturing know-how toward electrified cars.
Hachigo believes efficient EV manufacturing remains a big hurdle of the new era.
"One technical challenge on our side is to try to make it possible to produce gasoline-engine cars, hybrids, plug-in hybrids and battery EVs in the same way at the same factory," he said.
"The biggest challenge for us is how to make that happen."
Hachigo's assessment came just days after his company announced it will partner with SenseTime Group, of China, to develop artificial intelligence.
That followed an announcement last month that it will team with Japanese telecom giant Softbank Corp. to research superfast 5G next-generation mobile networks for use in vehicles.
Why is Honda partnering with a new start-up company for AI and Softbank (i.e. the shittiest mobile provider of the main 4 in the U.S. and the smallest and weakest mobile provider of the main 3 in Japan)?
Honda says it is recalling 437,000 vehicles in the U.S. to fix a fuel-pump issue.
The recall covers model-year 2016-2018 Acura MDXs, 2015-2019 Acura TLX V6s and 2015-2017 Honda Accord V6s.
The automaker says the vehicles’ software needs to be updated, and in some cases, have their fuel pumps replaced.
That’s because sodium particulates in some U.S. gasoline can stick to internal components in the fuel pumps, reducing the pumps’ performance. In hot weather, this could limit the vehicle’s acceleration or cause its engine to stall, increasing the risk of a crash.
Honda says it has received no reports of crashes or injuries because of the issue.
Owners will be notified by letter in late March, after which they are advised to take the vehicles to authorized dealers.
TOKYO – Honda will shutter assembly plants in England and Turkey by 2021 as the automaker pushes toward electrification and confronts changing trends in trade relations.
The global restructuring move comes amid uncertainty about Britain’s so-called Brexit withdrawal from the European Union and the implementation of a new free trade pact between Europe and Japan.
Honda CEO Takahiro Hachigo announced the move Tuesday at the company's global headquarters in Tokyo.
The production overhaul has nothing to do with Brexit and the decision was timed to the end of the current Civic's lifecycle, Hachigo said. It is part of a wider adjustment of Honda’s global production base to improve efficiency and better tailor product to local markets, he said.
"We have decided to carry out this production realignment in Europe in light of our efforts to optimize production allocation and production capacity globally as well as accelerating electrification," Hachigo said. "We have made this announcement today due to the timing for deciding on a production base for the next Civic. So, this decision has nothing to do with the Brexit."
Honda has global production capacity for 5.4 million vehicles, but it sold only 5.24 million vehicles last year, giving it a utilization rate around 97 percent. After the changes, Honda’s global capacity will be trimmed to 5.1 million vehicles and the utilization rate will exceed 100 percent through overtime, Hachigo said.
Honda's Europe boss, Ian Howells, said the automaker will focus its investments on China, the U.S. and Japan. "This is not a Brexit-related issue for us. This decision has been made on the basis of global changes," Howells told BBC Radio.
The Swindon plant, opened in 1985, currently builds the Civic five-door hatchback for global markets including Europe and the U.S. It employs 3,500 people and produces about 150,000 vehicles a year. The factory has operated at less than full capacity in recent years as demand in Europe slumped, prompting Honda to suspend a production line with a capacity of 100,000 units in 2014.
With the start of the next-generation Civic, other regions will pick up the output that came from Swindon, Honda said. This includes a bigger share for Honda's North American plants. About 55 percent of Swindon's output is exported to North America.
"Given our efforts to optimize production allocation and production capacity on a global scale, we have concluded that we will produce the Civic for North America in North America," Hachigo said.
Honda’s European headquarters will remain in the UK, Honda said.
Honda will also close its Turkish plant, which builds the Civic sedan and produces about 38,000 vehicles a year, but intends to continue sales and marketing operations in the country, Honda said.
As part of the realignment, Honda said it will commonize the European lineup with the brand’s offerings in China, where environmental standards put similar demands on emissions. Future product for Europe will be exported from Honda plans in Japan and China, Hachigo said.
The UK has long been a Japanese hub for European auto production, with Honda, Nissan and Toyota owning three of the country’s six largest carmaking factories. That has quickly unraveled, with Nissan this month reneging on plans to build the X-Trail SUV in Sunderland -- partly due to the unresolved status of EU-UK trade after Brexit.
EU-Japan deal
UK-built products also risk being disadvantaged by a new treaty that will gradually eliminate tariffs on Japanese imports to the EU.
The EU-Japan Economic Partnership Agreement, in force since Feb. 1, ensures that the bloc’s 10 percent tariff on Japanese car imports will be reduced to zero over the next 10 years.
The treaty makes it easier for Japanese automakers to localize production at home for sale in the EU, consulting firm LMC Automotive said in a report this month. The UK is most at risk because almost half of the cars made in the country are Japanese branded, and Japanese automakers want to increase utilization of plants at home.
"Should Britain leave without a deal and WTO tariffs are applied to UK vehicle exports, the same cars made in Japan may well end up costing less to import into the EU than those produced just over the Channel in England," LMC’s director of global production forecast, Justin Cox, said in the Feb. 11 report.
Hachigo said the trade pact will improve the competitiveness of Japanese exports in the European market.
The UK auto industry has already been battling Brexit-related slowdown, potential tariffs and supply bottlenecks ahead of the exit from the EU on March 29. UK lawmakers have yet to find a solution to avert a no-deal split from the EU.
Ford Motor announced thousands of job cuts in Europe last week and said a hard Brexit would be "catastrophic" for the UK auto industry and its own engine-production facilities in the country. Jaguar Land Rover, Britain's biggest automaker, said in January it would scrap 4,500 positions in response to a sales slowdown blamed on reasons including Brexit. PSA Group’s Vauxhall Ellesmere Port site is in doubt as it mulls plans for the next Astra.
As the political impasse over Brexit drags on, investments in the British automotive industry nearly halved last year to 589 million pounds ($760 million), the lowest since the global financial crisis, according to the Society of Motor Manufacturers.
EV shift
Honda is revamping its global production footprint as it tries to tackle overcapacity at Japanese factories and the need to produce more electrified vehicles to meet more stringent emissions standards. Honda wants to get two-thirds of global sales from electrified vehicles by 2030.
“The significant challenges of electrification will see Honda revise its global manufacturing operations, and focus activity in regions where it expects to have high production volumes," Honda said in a release. "The restructure comes as Honda its commitment to electrified cars."
In October 2017, Honda said it would take the rare step of shuttering a Japanese assembly plant as it shifts manufacturing know-how toward electrified cars.
It said the aging Sayama assembly plant would wind down by March 31, 2022 and consolidate operations around the nearby Yorii plant, one of the automaker’s newest.
Yorii, which opened in 2013, will be positioned as a worldwide center for developing cutting-edge manufacturing technologies as well as techniques for producing electrified vehicles.
As part of the changes, Honda said it will also appoint a chairman to the currently vacant position. Toshiaki Mikoshiba, who currently oversees global sales and marketing as well as North American operations, will take the chairman’s role.
Unlike the way the Big Three manage their unionized plants—a boom-and-bust cycle of mass hiring followed by mass firing—Honda said it won't lay off any of its 4700 salaried and hourly non-union employees in Marysville. Instead, it said it will find new roles for workers on the displaced shift. Honda has never resorted to layoffs in its 37-year history in this country, a quiet fact that many inside Honda respect over long, steady careers.
Honda reports fiscal quarterly loss, to streamline models
May 8, 2019
TOKYO (AP) — Honda reported a loss for January-March Wednesday, despite growing sales, as an unfavorable exchange rate, income tax expenses and other costs hurt results.
Honda Motor Co. reported a 13 billion yen ($118 million) loss for the fiscal fourth quarter, a reversal from a 107.7 billion yen profit the previous fiscal year.
Quarterly sales rose 3% to 4.05 trillion yen ($37 billion).
For the fiscal year through March, Honda recorded a 610.3 billion yen ($5.5 billion) profit, down 42% on year because of an absence of a U.S. tax break, which boosted earnings the previous year.
Chief Executive Takahiro Hachigo announced Honda will streamline its product offerings, consolidating model variations, and increase parts-sharing to cut costs, with the first model developed under the new "architecture" launching next year.
Inter-regional cooperation will reduce manpower needs by a third, which will instead be used for research and development, he said.
In North America, a critical market for the Japanese automakers, Honda will reduce model options to realize growth, he added.
For the fiscal year through March 2020, Honda expects a 665 billion yen ($6 billion) profit, up 9 percent.
Honda forecasts 6 percent rise in annual profit on Europe factory revamp
May 8, 2019
(Reuters) - Honda Motor Co forecast on Wednesday a 6 percent increase in operating profit for the current fiscal year due to cost reduction efforts and a restructuring of its production network in Europe.
Japan’s third-largest automaker signaled that it was looking to reduce global production costs by 10 percent by 2025 and scale back the number of model variations, underscoring the cost pressures facing traditional automakers as they compete in a market that is being reshaped by tech companies and ride-sharing.
Honda expects profit to rise to 770 billion yen ($7 billion) in the year to March 2020, compared with the 834 billion yen average of 22 analyst estimates compiled by Refinitiv.
Operating profit was 726 billion yen in the year ended March, versus an average estimate of 803 billion yen.
Honda’s profit forecast is based on the assumption that the yen will trade around 110 to the U.S. dollar in the current financial year, compared with 111 yen in the year just ended.
Honda Celebrates 40 Years of Manufacturing in America
Sep 10, 2019 - MARYSVILLE, Ohio
Honda associates today celebrated the 40th anniversary of the historic start of production at Honda of America Mfg., Inc. in Marysville, Ohio, in 1979, when the first 64 associates began producing the Elsinore CR 250 motorcycle, which began the rapid growth of Honda in America.
After Honda became the first Japanese automaker to build products in the U.S., automobile production quickly followed on Nov. 1, 1982, at the adjacent Marysville Auto Plant in Ohio. Honda now has five U.S. auto plants and in 2018, nearly two-thirds of all Honda and Acura automobiles sold in the U.S. were made in America. With 12 major plants in the U.S., Honda also produces engines and transmissions, ATVs and side-by-side vehicles, a variety of power equipment products and the HondaJet in America.
Moreover, Honda's initial $35 million investment in the Marysville Motorcycle Plant has grown to more than $11 billion in Ohio, and an investment of over $21 billion in Honda's U.S. operations. Honda now employs more than 25,000 associates at its 12 plants in America. Honda also has steadily increased its local purchasing of parts and materials with more than 600 original equipment suppliers in America and cumulative parts purchases of over $440 billion.
"Honda's success in Ohio has always been driven by the dedication and innovative spirit of our associates and this 40th anniversary milestone is a tribute to Honda associates, past and present, who have provided their energy, ideas and passion to create high-quality products for our customers," said Mitsugu Matsukawa, president of Honda of America Mfg." Based on the team we have in Ohio, and the opportunities ahead, I'm excited for the future of Honda in America."
In addition to the commitment to local manufacturing, Honda has invested over $1.1 billion in Honda's U.S. R&D operations, including major centers in Ohio, California, North Carolina and Florida. This year, Honda also marked the 60th anniversary of its business in the U.S., with sales operations established in Los Angeles, California, in June 1959.
Quick Facts: Honda in Ohio
Since Honda began production in Ohio in 1979…
Employment has grown to 15,000 Honda associates in Ohio.
Investment has surpassed $11 billion in its Ohio operations.
Auto production totals nearly 20 million vehicles at Honda's three Ohio auto plants.
Engine and transmission production exceeds one million units per year.
Purchasing of parts and materials has grown to $10 billion annually.
Operations expanded to include R&D and parts procurement.
Charitable contributions top $100 million to Ohio community organizations.
40 Years of Honda Manufacturing in America
Honda marks its 40th anniversary of manufacturing products in America in Sept. 2019. Honda was the first Japanese automaker to produce products in America, beginning with motorcycles in 1979, followed by the start of automobile production in Marysville, Ohio, on Nov. 1, 1982.
Over the course of four decades, Honda has steadily grown its manufacturing capabilities in the region. Honda now employs more than 25,000 associates at 12 plants in America with the capacity to produce more than one million automobiles, three million engines, 400,000 power equipment products and 330,000 powersports products each year, using domestic and globally sourced parts. In 2018, nearly two-thirds of all Honda and Acura automobiles sold in the U.S. were made in America.
Honda also manufactures the HondaJet advanced light jet and GE Honda HF120 turbofan engines in America. Cumulatively, Honda has invested more than $20.2 billion in its American manufacturing capabilities, including more than $5.9 billion over the past five years. The company also works with more than 600 original equipment suppliers in America with cumulative parts purchases of nearly $400 billion over 35 years.
Honda on Wednesday announced plans for a six-day production suspension at all of its vehicle assembly and components plants in North America, reducing output by around 40,000 vehicles as it anticipates a slowdown in sales due to the coronavirus pandemic.
The temporary closure starts Monday, March 23 at all five of Honda’s U.S. vehicle assembly plants, its Ohio transmission and engine plants, and its components plant in Georgia, plus five plants in Mexico and Canada. Honda’s current plan is to resume production at all North American plants on March 31.
The move affects roughy 27,600 employees across four states and three countries, who will continue to receive full pay. Honda said it would use the down time to give its production facilities and common areas a deep cleaning to protect workers when they return. “Maintaining a clean and safe work environment is an ongoing priority at Honda, but in light of the current environment, we have instituted more frequent sanitization efforts at all of our facilities,” the automaker said in a statement.
Those include instituting screening measures at all of its U.S. facilities in Ohio, Indiana, Alabama and Georgia for all visitors, and enforcing “social distancing” practices through practices including staggered lunchtimes and allowing employees to work from home whenever possible. It also offers temporary paid personal leaves of absence for employees who contract the virus or whose families members fall ill. The company said all of its U.S. facilities remain open and knows of no employees who have been infected with coronavirus.
Honda has already suspended production in the Philippines, where it operates a vehicle-assembly plant that employs 650 workers. In its announcement Wednesday, Honda said it was carefully monitoring conditions with an eye on aligning production with demand. Its announcement comes as the Detroit Three automakers and the United Auto Workers union agreed to slow down production and stagger shifts, among other measures, to protect factory workers. It also follows an order directing Tesla to temporarily shut down its Fremont, California plant, where it is ramping up production of the new Model Y crossover, amid a three-week shelter-in-place order in the Bay Area.
Honda has confirmed a cyberattack on its corporate computer networks that has brought some of its worldwide operations to a standstill. According to a statement, “Work is being undertaken to minimize the impact and to restore full functionality of production, sales and development activities.” The company also says no data has been breached, just held for ransom, hence the name.
“Snake” ransomware encrypts files and documents and holds them for ransom, usually some form of untraceable cryptocurrency.
According to Techcrunch and Brett Callow, a threat analyst at Emsisoft, the malware was uploaded to VirusTotal, a malware analysis service. It referenced an internal Honda subdomain.
“The ransomware will only encrypt files on systems capable of resolving this domain but, as the domain does not exist on the clear net, most systems would not be able to resolve it. Mds.honda.com may well exist on the internal nameserver used by Honda’s intranet, so this is a fairly solid indicator that Honda was indeed hit by Snake,” said Callow.
Work at a U.K. plant has been suspended, as have other operations in North America, Turkey, Italy and Japan.
Beazley, a business insurer, told the BBC that it has seen a 25% spike in ransomware in the first quarter of 2020, suggesting hackers are using COVUD-19-related lures to get people to download malware.
"Organizations must ensure their security systems and protocols are up to date and ensure that colleagues working from home are extra-vigilant,” said the firm’s Katherine Keefe.
“At this point, we see minimal business impact,” Honda says.
We've contacted Honda for the latest developments and will update this story as it evolves.
Honda suspends Facebook, Instagram ad spending as boycott grows
June 26, 2020
Honda Motor Co.’s U.S. automobile division is joining a Facebook ad boycott, making it the first automaker to publicly pledge to join a movement that is gaining momentum by the hour.
“For the month of July, American Honda will withhold its advertising on Facebook and Instagram, choosing to stand with people united against hate and racism," Honda said in a statement. "This is in alignment with our company’s values, which are grounded in human respect.”
The move includes spending for the Honda brand as well as Acura, Honda's luxury brand.
Verizon, Unilever and other big consumer goods makers have pledged to halt Facebook and Instagram spending in response to civil rights groups, while calling out the social media giant for failing to prevent the spread of disinformation and hate speech.
Unilever took its pause a step further, including Twitter, and extended the suspension in the U.S. through the end of the year. An American Honda spokeswoman said the automaker would continue spending on Twitter.
Honda is the nation’s 33rd-largest ad spender, according to the latest figures from the Ad Age Datacenter.
Honda spent roughly $693,000 in the past 30 days on Facebook, according to digital intelligence platform Pathmatics, which tracks where and how brands spend ad dollars. Unlike its rivals, however, the automaker scaled back ad spending on the social media platform significantly in late May, according to Pathmatics.
“We deeply respect any brand’s decision and remain focused on the important work of removing hate speech and providing critical voting information," Carolyn Everson, vice president of the global business group at Facebook, said this week. "Our conversations with marketers and civil rights organizations are about how, together, we can be a force for good.”
November 7, 2020 — MARYSVILLE, Ohio & TORRANCE, Calif.
Auto manufacturing operations will combine and merge with auto product development to form a new company in North America
Auto design will become part of American Honda Regional Operations
Auto Field Operations to be streamlined to more quickly address dealer & customer needs
Honda of South Carolina Mfg. to become part of American Honda Powersports Business Unit
Honda today announced plans to combine all of its automobile manufacturing facilities in the U.S. related to frame, engine, transmission, and related engineering and purchasing operations into one new company, to be named Honda Development & Manufacturing of America, LLC (HDMA). The new company also will integrate the automobile product development operations of Honda R&D Americas, LLC (HRA). The unification of Honda’s manufacturing operations and merger with auto product development will be effective April 1, 2021.
"Today, we are announcing a number of changes to our business operations that continue the journey we began last year, to become a more lean, nimble and unified company in North America," said Shinji Aoyama, chief officer of North American Regional Operations of Honda Motor Co., Ltd., and president & CEO of American Honda. "Each change is vital to our ongoing effort to make Honda in America stronger and more responsive to the customer, better able to invest in advanced technology, and prepared to meet future market needs."
In addition, with the move of auto product development functions to the new HDMA company, the automobile product design and certain market research functions currently part of the HRA Los Angeles Center will be integrated into the Regional Operations of American Honda Motor Co., Inc., based in Torrance, Calif.
Honda Development & Manufacturing of America, LLC (HDMA)
Honda will unite all auto creation functions into HDMA with a focus on achieving seamless development of new products with improved efficiency and quality, thus positioning its North American operations for the future. These changes will effectively bring all auto development, planning, purchasing, strategy and manufacturing into one company, thus strengthening what Honda calls a "one-floor" approach to the product development process. This includes:
Centralizing key business functions to become more efficient and eliminate redundancies;
Executing new product development with increased speed and accuracy; and
Improving manufacturing characteristics with a focus on quality, cost competitiveness and the ability to deliver vehicles that appeal to customers in a timely manner.
This approach is similar to restructuring that was announced in February of this year by Honda Motor Co., Ltd. in Japan, including the integration of the automobile development function of Honda R&D Co., Ltd. and key elements of Honda Engineering Co., Ltd. (Honda’s production engineering company) into parent company Honda Motor’s Automobile Operations, including its Production and Purchasing Operations.
Auto-related Honda companies to be wholly or partially consolidated into HDMA include:
Honda of America Mfg.
Honda Manufacturing of Alabama
Honda Manufacturing of Indiana
Honda Transmission Manufacturing of America
Honda Precision Parts of Georgia
Honda Engineering North America
Honda R&D Americas
Honda Accessory America
Streamlining Auto Sales and Parts & Service Field Operations
Separately, in a significant move related to its Auto Sales and Parts & Service Business Units, American Honda announced plans to streamline its Auto Sales and Parts & Service Field operations to enable a more agile response to local market needs.
In January 2021, Honda and Acura zone offices will be restructured in order to improve communication between Dealers, Zone management and National Sales and Parts & Service management. The change includes four new Regional Manager positions that have been created to provide oversight of Honda Sales, Acura Sales and Parts, Service & Technical field operations. The Regional Managers will become the key link between the company’s National and Field operations, ensuring better alignment among all staff who call on Honda and Acura dealers and pushing decision making authority down to local staff to more quickly address dealer and customer needs.
Continued Restructuring of Honda’s U.S. Powersports Operations
Honda companies in the U.S. responsible for Powersports business, including motorcycle, ATV and side-by-side products, began restructuring earlier this year to unite the functions of sales, manufacturing, product development and purchasing. Today, it was announced that Honda of South Carolina Mfg., responsible for powersports manufacturing in the U.S., will formally become part of the Powersports business unit within American Honda. This follows a similar reorganization in Japan, in 2019, when the Motorcycle Operations of Honda Motor and the Motorcycle center of Honda R&D were merged into one organization to strengthen the unity of sales, production, development and purchasing functions.
About Honda in North America
Honda established operations in North America in 1959. Today, the company employs more than 40,000 associates in the region, engaged in the development, manufacturing, sales and service support of Honda and Acura automobiles, Honda power equipment, Honda powersports products, the HondaJet advanced light jet and GE Honda HF120 turbofan engines.
Based on its longstanding commitment to build products close to the customer, Honda operates 19 major manufacturing plants in North America, working with more than 740 suppliers in the region to produce the diverse range of Honda products. In 2019, more than 90 percent of the Honda and Acura automobiles sold in the U.S. were produced in North America, using domestic and globally sourced parts.
Honda also operates 15 major research and development centers in North America which jointly fully design, develop and engineer many of the products the company makes in North America.
Its sales so far this year are down 15% to 1,383 vehicles
Reuters
Dec 30th 2020 at 8:32AMMOSCOW — The Russian subsidiary of Honda said on Wednesday it would stop supplying new cars to official dealers in Russia in 2022 as part of the company's efforts to restructure its operations.
The company said it would keep its presence on the Russian market with motorcycle and power equipment sales, and retain its activities related to the after-sales service of its vehicles.
Honda, which has no plants in Russia unlike other Japanese carmakers such as Toyota and Nissan, sold 79 vehicles in Russia last month, a 50% drop from a year earlier, according to the Association of European Businesses.
Its sales from January to November were down 15% to 1,383 vehicles.
More than 1.3 million new cars were sold in Russia during that period.
Its sales so far this year are down 15% to 1,383 vehicles
Reuters Dec 30th 2020 at 8:32AMMOSCOW — The Russian subsidiary of Honda said on Wednesday it would stop supplying new cars to official dealers in Russia in 2022 as part of the company's efforts to restructure its operations.
The company said it would keep its presence on the Russian market with motorcycle and power equipment sales, and retain its activities related to the after-sales service of its vehicles.
Honda, which has no plants in Russia unlike other Japanese carmakers such as Toyota and Nissan, sold 79 vehicles in Russia last month, a 50% drop from a year earlier, according to the Association of European Businesses.
Its sales from January to November were down 15% to 1,383 vehicles.
More than 1.3 million new cars were sold in Russia during that period.
Honda worldwide production from their 2019 annual financial press release.
For a company that sold 3.2M cars in China and NA, only selling 1.6M cars in the rest of the world is what I would consider underachieving. The fact that they're basically non-existent in the huge EMEA market is a big missed opportunity.
For a company that sold 3.2M cars in China and NA, only selling 1.6M cars in the rest of the world is what I would consider underachieving. The fact that they're basically non-existent in the huge EMEA market is a big missed opportunity.
I am surprised at the low(er) numbers in Europe. Figured they'd sell better there. Be interesting to see a breakdown by Euro country, my assumptions is that a lot are in the UK.
The market seems to agree with me: Honda's stock price and market cap has been stagnant over the past 15 years. Sure, there has been headwinds in the entire automotive sector, but their closest comp Toyota trended up during that same time.
I am surprised at the low(er) numbers in Europe. Figured they'd sell better there. Be interesting to see a breakdown by Euro country, my assumptions is that a lot are in the UK.
Honda Motor Europe senior vice president Tom Gardner contends the brand has performed well: “Honda has maintained consistent UK market share over the past five years, in excess of 2%, highlighting strong brand presence in the UK, with a committed dealer network offering outstanding customer satisfaction.”
However, insiders and experts identify weak product planning as one of Honda’s missteps. Among them are the Pilot 5+2 SUV not making it to the UK in 2002, the on/ off Civic Tourer estate, the niche model strategy, on/off hybrids and being slow to market with diesel at a time when it was a must-have in every manufacturer’s armoury. Another example is when, having built a customer base for the Stream and its FR-V successor, Honda pulled out of the MPV market without a replacement, deserting the loyal customers the two models had won.
“Fundamentally, Honda has misjudged the European market, and they simply don’t have the volume to justify production here,” says Bailey.
Talking to former Honda employees, there is a feeling that a switch was flicked around the time of the 2008 financial crisis. “Honda lost its spark. The model range definitely lost its spark,” says one former executive who spoke to Autocar on condition of anonymity. “The product line wasn’t as exciting and the commitment wasn’t the same.”
Another insider identifies a senior management team with a focus more on the home market in recent years and reduced interest in Europe. “The new generation seem more nationally focused,” says the former exec. “The post-World War II generation who were around in 1992, and who looked to Europe, are gone. The new people are less interested in Europe.”
The market seems to agree with me: Honda's stock price and market cap has been stagnant over the past 15 years. Sure, there has been headwinds in the entire automotive sector, but their closest comp Toyota trended up during that same time.
Unfortunately, your lack of knowledge is easily checked since Honda and Toyota stock prices since 1976 are up ~5000% and ~4400% respectively.
Past 15 years they are close with Toyota ahead by about 20%, but Honda is not flat they trend closely over time.
If one knew anything about business and indicators, they'd know something about revenue per car and gross profit as well.
Toyota has seen a near flat sales volume over the last 3 years. It has stayed at around 9 million units from 2017 to 2019. Trefis estimates sales volume to improve a little to around 9.2 million in 2020 (ended March 2020).
Meanwhile, Honda has seen a constant increase in sales volume over the past few years. It rose from 5 million units in 2017 to 5.3 million in 2019. Trefis estimates the trend to continue and sales volume to reach around 5.4 million units in 2020 (ended March 2020).
2) Average Revenue per Vehicle
Toyota’s average revenue per vehicle has seen a small drop in 2018 to $26.5K per vehicle but recovered in 2019 to around $27.1K per vehicle. Trefis estimates the metric to further improve to around $27.7K per vehicle in 2020 (ended March 2020).
Similarly, Honda has also seen continuous fluctuation of the average revenue per vehicle metric as it increased to $18.8K per vehicle in 2018 but fell to $18.7K per vehicle in 2019. Trefis estimates the metric to increase to $19.1K per vehicle in 2020 (ended March 2020).
Have to give Toyota credit as they have typically done better with higher gross profit per vehicle which they do with a more tiered line of products
But one also has to remember Toyota started cars in 1963 while Honda started cars in 1937 so a 26 year headstart, but Honda is slightly more diversified as they also are #1 in world motorcycle sales.
Interesting companies, but both are also unique and stubborn as they do things their way as well in terms of business strategy and culture.
Keep it up Mr. Auto Executive
As I've said may times before, Honda makes great cars, but Honda as a global business underachieves pretty bad.
09-10-2017, 08:42 PM
especially since it sounds like you want to ditch your s2000 prior to the new one coming out. You're just assuming the 2G will be great. With that being said, you don't see people fighting tooth and nail for a first year AP1, but rather, people are fighting for the later and improved AP2. 
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