Honda Civic sales cooling off, down 22%
03-16-07, 09:52 AM
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Honda Civic sales cooling off, down 22%
Honda's Civic Cooling
Sales were hot, now they're not
By KATHY JACKSON | AUTOMOTIVE NEWS
AutoWeek | Updated: 03/12/07, 1:49 pm et
http://www.autoweek.com/apps/pbcs.dl.../70312012/1528
Sales were hot, now they're not
By KATHY JACKSON | AUTOMOTIVE NEWS
AutoWeek | Updated: 03/12/07, 1:49 pm et
LOS ANGELES - U.S. sales of the once-hot Honda Civic have cooled considerably this year.
What's going on? Dealers say American Honda Motor Co. has eased off on Civic advertising and focused on pushing Accords.
Honda sold 316,638 Civics in 2006 after an autumn 2005 redesign. That was 2.7 percent above 2005, making Civic the sales leader in the lower mid-range segment.
But 2007 has not been so kind. Sales in the first two months of this year fell 22.4 percent, to 38,419.
"Lack of attention is what's hurting Civic," says Jim Smail, of Smail Auto Group in Greensburg, Pa. Smail is the Honda dealer council chairman.
"Unfortunately, Honda has not advertised Civic because it was in such great demand," Smail says. "We've told the company we think advertising is critical. We have a big job to do with the Civic this year."
Other dealers say an aggressive push by the factory on the Accord also has hurt the Civic.
The Accord will be redesigned for the 2008 model year, so the company wants to push out all the 2007 models.
"Honda dealers are talking about Accord because that's what Honda is talking about," says Dave Conant, a Honda dealer in Cerritos, Calif. Conant says volume targets on the Accord are the most aggressive he has seen.
"Dealers are using their incentives on Accord, so Accord is overlapping Civic," he says. "Accord is cannibalizing Civic."
Honda's Web site offers a "value package" base Accord with manual transmission for $19,220, including shipping.
The top-end Civic EX sedan with manual transmission stickers for $19,305 with shipping.
John Mendel, American Honda's senior vice president for automobile operations, admits the company wants the Accord to go out with a bang. But he doesn't think Accord prices are hurting the Civic.
Mendel says part of the problem is Honda hasn't had the proper mix of vehicles for customers.
Dealers need more base models and more high-end models with navigation systems, he says.
"We're rectifying that. We're not worried about Civic."
Jeff Conrad, vice president of advertising, says Honda began a national and regional TV push for the Civic in late February.
"Civic was hot so we let Civic carry itself ever since we introduced the product," Conrad said. "Now all of a sudden gasoline prices have dropped, and Civic is not new, so we've got to put more emphasis on it - to remind people that Civic is out there."
What's going on? Dealers say American Honda Motor Co. has eased off on Civic advertising and focused on pushing Accords.
Honda sold 316,638 Civics in 2006 after an autumn 2005 redesign. That was 2.7 percent above 2005, making Civic the sales leader in the lower mid-range segment.
But 2007 has not been so kind. Sales in the first two months of this year fell 22.4 percent, to 38,419.
"Lack of attention is what's hurting Civic," says Jim Smail, of Smail Auto Group in Greensburg, Pa. Smail is the Honda dealer council chairman.
"Unfortunately, Honda has not advertised Civic because it was in such great demand," Smail says. "We've told the company we think advertising is critical. We have a big job to do with the Civic this year."
Other dealers say an aggressive push by the factory on the Accord also has hurt the Civic.
The Accord will be redesigned for the 2008 model year, so the company wants to push out all the 2007 models.
"Honda dealers are talking about Accord because that's what Honda is talking about," says Dave Conant, a Honda dealer in Cerritos, Calif. Conant says volume targets on the Accord are the most aggressive he has seen.
"Dealers are using their incentives on Accord, so Accord is overlapping Civic," he says. "Accord is cannibalizing Civic."
Honda's Web site offers a "value package" base Accord with manual transmission for $19,220, including shipping.
The top-end Civic EX sedan with manual transmission stickers for $19,305 with shipping.
John Mendel, American Honda's senior vice president for automobile operations, admits the company wants the Accord to go out with a bang. But he doesn't think Accord prices are hurting the Civic.
Mendel says part of the problem is Honda hasn't had the proper mix of vehicles for customers.
Dealers need more base models and more high-end models with navigation systems, he says.
"We're rectifying that. We're not worried about Civic."
Jeff Conrad, vice president of advertising, says Honda began a national and regional TV push for the Civic in late February.
"Civic was hot so we let Civic carry itself ever since we introduced the product," Conrad said. "Now all of a sudden gasoline prices have dropped, and Civic is not new, so we've got to put more emphasis on it - to remind people that Civic is out there."
03-16-07, 09:55 AM
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No need to waste money on advertising. Civic sale is about to get HOT again since gas prices is on the way back up FAST!! Those greedy bastards will always come up with some lame excuse to justify price increase. I wouldn't be surprise if they found a way to blame Al gore if gas price hits $4 a gallon.
Last edited by RiceMaster; 03-16-07 at 09:59 AM.
03-16-07, 10:03 AM
#3
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The Civic always has been an excellent and extremely well-built small car...and one of the most popular small cars on the marketplace. It still sells well, but I think the 22% downturn is due to something Honda just doesn't want to admit....the split-dash/gauge design, with the digital speedometer far ahead at the base of the windshield, was a mistake. Honda has to learn the same lession that Saturn (Ion), Toyota/Scion (Echo, Yaris, xA,xB), and Nissan (Quest) are learning with their unconventional dashes......if it ain't broke, DON'T FIX IT.
03-16-07, 10:07 AM
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No need to waste money on advertising. Civic sale is about to get HOT again since gas prices is on the way back up FAST!! Those greedy bastards will always come up with some lame excuse to justify price increase. I wouldn't be surprise if they found a way to blame Al gore if gas price hits $4 a gallon.
If the "bastards" WERE that "greedy", we wouldn't have enjoyed the low gas prices for the last 8-9 months that we did.
03-16-07, 10:09 AM
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The Accord will be redesigned for the 2008 model year, so the company wants to push out all the 2007 models.
03-16-07, 10:23 AM
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So wait, Civic sales are actually down because of mistakes Honda is making, not because production is limited like many have been saying 
.
It's a relief to see an article that finally puts this silly debate to rest. I was certain the drop in Civic sales had nothing to do with limited production. The Civic's combination of rather high price, strange design, and the low price for the Accord is what's hurting it.
This also explains why Accord sales have suddenly increased, which is due to incentives.
Simply put, the new Civic is not doing as well as Honda expected.
.It's a relief to see an article that finally puts this silly debate to rest. I was certain the drop in Civic sales had nothing to do with limited production. The Civic's combination of rather high price, strange design, and the low price for the Accord is what's hurting it.
This also explains why Accord sales have suddenly increased, which is due to incentives.
Simply put, the new Civic is not doing as well as Honda expected.
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03-16-07, 10:32 AM
#8
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I have Civic friends in Mexico (at my track, in clubs) and they won't touch the new model. It is not well-like here nor in other places in Latin America, and people still favor the old design. Additionally, keep in mind vehicles are more expensive here than in the U.S.
03-16-07, 10:42 AM
#9
Hmmm
I guess that this does explain the sudden jump in Accord sales.
I also think that the design may have turned some people off: not just the dash but also the aggressive front/windshield. When their new factory gets built & starts producing Civics, we shall see if production of the CR-V did indeed cut into Civic's.
On a side note: they did a good job on the sedan's tail lights -- they look like they might be LEDs until u get up close.
I also think that the design may have turned some people off: not just the dash but also the aggressive front/windshield. When their new factory gets built & starts producing Civics, we shall see if production of the CR-V did indeed cut into Civic's.
On a side note: they did a good job on the sedan's tail lights -- they look like they might be LEDs until u get up close.
03-16-07, 11:20 AM
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The thing that gets me is that when prices go up, they jump 20-30cents instantly, but takes 2 weeks or more to drop back, but only to stay a couple of days before going DRASTICALLY back up. It's like these forecastors are predicting DOOM everyday just to have a reason to jack prices. That 8-9 months of low gas prices is just their way of punking the public so we don't go pulling a Rodney King riot or worse yet, drive the SUV market to the ground. Anyone dumb enough and trade the Civic in for an SUV during the last 8-9 months will be hurtin big time when price hits $3 again.
I can understand price going up due to oil rigs getting damaged by Katrina, but purposely not building enough refineries and a switch to new formulations as a way to justify price increase is just flat out LAME!! But it doesn't matter whether I know much about economics or not, just like our justice, economics is just a game. What matters most is that I need to be the Chief so I can feed my style of BS to the Indians all over the world. That's what life is ALL about, forcing your **** onto others and let them whine about it when things don't go their way. Anyone gets out of hand, ban they azzes.
03-16-07, 11:23 AM
#11
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I think the pricing is the issue. The Civic is priced at near mid-size car level. Meanwhile, many low priced compact cars such as Scion, Yaris, Versa, Fit, SX4 have flooded the market. Ford is also dropping the Focus pricing to low-teens. Though Civic is a better car than any of the above in my opinion, they do steal some Civic sales.
03-16-07, 11:29 AM
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Its one thing to be in a bland looking car (old Civic, Corolla, most everthing in this segment). This is now a VERY competative segment, from the Americans, Koreans and Germans (the Golf/Rabbit is very good). It is no longer automatic Corolla/Civic city.
Its another thing to be in an UGLY car. Its ugly. Period. Ugly hurts sales, however in rare cases, "Shallow Hal" syndrome takes over, and people buy ugly cars in droves (think BMW).
Mazda 3 ftw!!!!
Its another thing to be in an UGLY car. Its ugly. Period. Ugly hurts sales, however in rare cases, "Shallow Hal" syndrome takes over, and people buy ugly cars in droves (think BMW).
Mazda 3 ftw!!!!
03-16-07, 11:39 AM
#13
Lexus Fanatic
Its one thing to be in a bland looking car (old Civic, Corolla, most everthing in this segment). This is now a VERY competative segment, from the Americans, Koreans and Germans (the Golf/Rabbit is very good). It is no longer automatic Corolla/Civic city.
Its another thing to be in an UGLY car. Its ugly. Period. Ugly hurts sales, however in rare cases, "Shallow Hal" syndrome takes over, and people buy ugly cars in droves (think BMW).
Mazda 3 ftw!!!!
Its another thing to be in an UGLY car. Its ugly. Period. Ugly hurts sales, however in rare cases, "Shallow Hal" syndrome takes over, and people buy ugly cars in droves (think BMW).
Mazda 3 ftw!!!!
03-16-07, 11:49 AM
#15
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I think the pricing is the issue. The Civic is priced at near mid-size car level. Meanwhile, many low priced compact cars such as Scion, Yaris, Versa, Fit, SX4 have flooded the market. Ford is also dropping the Focus pricing to low-teens. Though Civic is a better car than any of the above in my opinion, they do steal some Civic sales.
) between the Fit and the Accord, but the unconventional dash is the main problem.The SX4 doesn't really compare to the rest of this group because it comes with standard multi-mode FWD/AWD and starts between 15-16K.
The Scion xA, xB, and Toyota Echo/Yaris made the same mistake that Honda did...though in a different way.......an unconventional dash/gauge design that turns some people off, and as a result, their sales have not been what they would have been otherwise. Putting the gauge cluster in the middle of the dash, style-wise and marketing-wise, is a mistake, but the auto companies simply won't admit it (and they use EVERY excuse in the book to convince us otherwise...I've heard it all) because it lowers their costs in making both left and right-hand drive models for different export markets. It boils down to a money issue......just like many other things in the auto industry.
Back to the Civic, though.....although its gauge cluster is not centrally-located like in some other small cars, the split-level design, like the central-location design, does turn some people off.
Last edited by mmarshall; 03-16-07 at 11:53 AM.