Hoovey689

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Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now – just ask Peugeot – but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.

Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

http://www.autoblog.com/2013/02/12/a...t-the-economy/

mmarshall

Honda has never had the cheapest prices out there.....particularly back in the days when demand consistantly exceeded supply and dealers often added surcharges. Nor did the factory often give price-incentives, either. But there was a reason for that. Hondas usually sold on word-of-mouth and their quality reputation. The problem, today, though, is not so much the fact that Honda has slid (although there is some evidence of cost-cutting in design), but that other manufacturers are catching up. As the article correctly points out, Nissan, among other manufacturers, is able to better-compete with Honda today in turning out quality vehicles at lower prices.

spwolf

Nissan has rock bottom prices, Honda has premium prices.... Qashqai is priced at the level of base Civic, not CRV, which is very expensive.

LexFather

Honda has been struggling there awhile. The Euro Accord (tsx) and legend (RL) rot on dealer lots. Hondas avg age of buyer is like 60+ there.

Lets see if they figure it out

Gen2IS26

Their young aged people market has dropped. Mainly because Honda has nothing that appeals to them. The Civic is horrible looking, a nicely equipped Accord coupe runs you well over 30k. They moved away from what made them what they were and geared their interests towards economy and a family brand.

spwolf

this is thread about european sales, it has nothing to do with US Honda at all...

mmarshall

Dunno, Mike. Maybe with some of their vehicles. But the CR-V is extremely popular with young soccer-moms. And the Accord, for years, has appealed to people across the board, in many different age-gropus.....one reason for its enormous sales.

Honda, though, did blow it with the CR-Z. It may boast the only hybrid conventional three-pedal 6MT in the American market, but it still isn't selling....strange, considering the cult-like status of the old CRX. I discussed this at the D,.C. auto show with some of the Honda reps there, and suggested that they do a conventional gas-powered version, especially an Si. The old CRX Si was like gold in the marketplace (a close friend of mine owned one for years). Most of the people who would probably buy the CR-Z are probably not interested in a hybrid. Of course, in Europe, diesels are also quite popular.

LexFather

In Europe, not here. Honda is struggling with its small cars now and their large cars in Europe. The CR-V sells very well here but not in Europe.