RON430

No clue as to what is going on but with the dollar plunging relative to the yen, it probably is not good news. A loss of $200M for every yen the the dollar drops is pretty impressive. If this lasts very long, expect all the Japanese car companies to be raising prices. While there may be something else involved, Toyota, Nissan, etc., are not in the slightest bit immune from currency swings. Even mfg plants here don't totally isolate you as you are going to repatriate profits just as the US auto cos. do and the dollar alone is probably really hurting.

Honda stock drops ahead of urgent announcement
Tuesday December 16, 11:27 pm ET
By Yuri Kageyama, AP Business Writer
Honda stock drops ahead of urgent news conference, fears of global auto slowdown


TOKYO (AP) -- Honda shares dropped 4.6 percent Wednesday morning on worries about a serious slump in the global auto market after the president's year-end press conference was suddenly moved up two days.

Japan's No. 2 automaker declined to give a reason for the urgency for the news conference to later Wednesday, except for "internal factors."

In recent years, the annual media event has usually been an occasion for Honda to announce ambitious plans for growth in key global regions and outline its strategy in green technology such as hybrids and fuel cell vehicles.

But speculation is rife this year's news will be dismal as the industry gets hammered by the global recession set off by the U.S. financial crisis.

Japan's top business daily, The Nikkei, reported Wednesday that Honda will revise its profit forecast lower -- its third revision this year -- and will scale back some of its planned investments to rein in costs.

Honda officials declined to comment on the report.

The company's shares, which have fallen to about half their value since the beginning of this year, ended the morning session at 1,883 yen ($21) in Tokyo, down 90 yen.

In a news conference earlier this month, Honda President Takeo Fukui warned the industry may have entered a critical period of transition because of the financial crisis.

"It is difficult to foresee what lies ahead, and it is beyond our imagination," he said on nationally televised news.

Particularly damaging to Japanese automakers has been the plunging dollar, which has declined to below 90 yen. For every yen the dollar declines, Honda loses about 18 billion yen ($200 million) in operating profit. In trading Wednesday, it was at 88.99 yen.

Until recent months, Honda had averted the woes of its cash-strapped U.S. rivals, General Motors Corp., Ford Motor Co. and Chrysler LLC, which are asking for a government bailout.

Like other Japanese manufacturers, Honda makes models such as the Civic and Accord, which have a reputation for fuel-efficiency. Such products had been relatively popular amid surging gas prices.

But the recent drop in auto sales is proving too much for even Honda. In November, when U.S. auto sales plunged 37 percent to their worst level in more than 26 years, and Honda's vehicle sales sank 32 percent on year.

http://biz.yahoo.com/ap/081216/as_japan_honda.html?.v=4

FKL

No company is immume from this disaster. They cannot share any real blame for the market deterioration.

UDel

I believe the big announcement is they are postponing the start of the Acura brand in Japan and making other domestic cutbacks. Not really big urgent shocking news and not something I think should make investors too worried but still not a good sign in this economy.

http://www.marketwatch.com/news/stor...%7D&dist=msr_2

LexFather

^^They already announced Acura won't be in Japan for sometime. I think they hate their own brand lol.

I think its b/c Honda dumped tons of money into the new insight and this hydrogen car and demand will be limited with gas being cheaper and the credit crunch.

bitkahuna

iTrader: (20)

I wouldn't be surprised if they announce they're halting production on some models due to lack of demand.

DrUnBiased

The Acura brand was originally scheduled to launch in Japan in 2008. However, after Acura saw the way Lexus has been struggling in Japan, they postponed the launch until 2010 in order to revise their strategy. Until this press conference, Acura was still set to launch in 2010.

leedogg

Perhaps Honda is dropping or selling off its Acura brand.

I8ABMR

even the good car companies will suffer.

LexFather

Acura is barely IN America with such a limited lineup. We have heard so much rumors/delays/crap about Acura the last 3 years from Honda themselves no one knows what the hell they are doing.

They have no strategy. They need an EXIT strategy

They can say Lexus is struggling all they want, Lexus is in markets and areas they can only dream of.

They should put up or shut up. Period.

LexFather

Honda CEO confirms NSX is canceled

http://www.motorauthority.com/honda-...successor.html

Amid the announcement of its third profit warning of the year, Honda has confirmed that it has canceled plans for the launch of a successor to the NSX supercar. The new V10-powered model was expected to arrive in the United States next year as an Acura, but sadly all development work on the car has come to an end.Honda CEO Takeo Fukui confirmed the plan in his end of year speech, saying that all development of the car would cease. Fukui also revealed that plans to introduce the Acura brand to Japan in 2010 have all been canned, reports Automotive News.

The news comes less than two weeks after Honda announced that it planned to pull out of next year’s Formula One season, citing financial constraints as the main reason.

Honda also announced today that it is lowering its annual operating profit forecast by 67% - its third profit warning of the year. The carmaker now expects its operating profit for the business year to March 31 to be ¥180 billion ($2 billion) - down 81% from last year.

Instead, Honda will focus on developing more fuel-efficient hybrid and diesel models, especially in the compact car segments. Plans for a minicar positioned below the Fit (Jazz) are still on track, as are plans for the CR-Z hybrid sports car.

rogers2

ha ha Acura = losers

I understand why but give me a break. Honda should kill off Acura and make every car they sell a Honda. What I fail to understand is that if these so call companies are so rich or whatever. Shouldn't they have some money save up some where in the Cayman islands or something. That's a joke
As far as making an NSX I hope they never make another one. At least I can say I once own the best car Honda ever made.

wmb0000

I see no issue here. With the economy on the downturn all companies are cutting back or delaying things. It's make good business sense. Every good company is hurting and all their sale are dropping. Toyota also do similar things. It's all good business stragy, why so much hating on this ?

LexFather

If you say its hating, i will say you are blindlessly saving them. So cut the crap. Rogers2 SAID HE OWNED A NSX. What the hell is with people just saying "hating" whenever they don't agree with something?

The FACT is
1. They CANCELED the last NSX when the economy was GREAT.
2. We have seen 2 or 3 versions of the "next" NSX.
3. Now they CANCEL the next NSX which they now blame the bad economy on.

I think a lot of it has to do with public reaction to a front engine, ugly looking on the road/concept next NSX. Seems Honda blames everyone/everything but themeslves for the NSX and Acura.

Yeah, it sounds like great business sense but all we see with Acura is them blowing smoke up blindless followers skirts and bringing NOTHING to the table.

More excuses. Period.

wmb0000

Granted everything you say was truth, you think it's make good business sense now trying to introduce a new NSX with our current economy condition? How could this be blindlessly saving them. Base on what you said it seem to you think that somehow Honda is immune to this economy downturn because you think it's just an excuse for canning the NSX.

The dollar are dropping it's value daily and as you can see no one is immune in this economy. NSX is not going to be the savior of Acura but just to display it's technology capabilities as a car company. Right now all company should be very frugal in all their investment so everything will get re-evaluated. I see no issue here with Acura canceling the NSX for the time being.

Doesn't Lexus have a similar issue with a certain car that keep delaying?

LexFather

This has nothing to do with Lexus. While Lexus actually produces luxury vehicles, Acura has done nothing but "talk" while Lexus "walks" it. For the last 10 years we have heard, V-8, V-10, RWD, coupe, Tier I, yadda yadda yadda crap from Acura. Lexus rarely says much anything, they just DO.
As for the LF-A, this is the latest word.
The point is;Acura just TALKS, no matter WHAT the economy is. When the economy is good, they can the NSX. They say "we don't need V-8s". Then they cancel the NSX saying "the economy is bad". It doesn't matter WHAT the economy is like, they don't produce. PERIOD.

Its not like Honda won't be profitable. Its just that profits are down. IF they were SERIOUS about Acura, they would go forward with plans. They continue to have no idea/strategy on what Acura is or what they want it be.

The economy won't be bad forever. It WILL turnaround. Acura will continue to be a Tier III or whatever brand passed by everyone by 2015.

Heck the NSX in 1990 didn't debut during great economic times either. They might have lost 800 mill on it but they made ONE OF THE GREATEST CARS EVER which helped sell OTHER vehicles for the brand.

This is the same brand that will seemingly bring a useless and ridiculous "MSX" or whatever X6/FX fighter. X6+FX sales in a month= RX sales in a week. It will give Acura 3 sedans and 3 SUVS. It makes NO sense.