Honda cautious about Accord's future, predicts sales decrease in U.S.
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Honda cautious about Accord's future, predicts sales decrease in U.S.
YUZO YAMAGUCHI | Automotive News
Posted Date: 11/5/04
TOKYO -- Honda Motor Co. expects U.S. sales of the Accord to fall this year as much as 7 percent to about 370,000.
"We're cautious about the Accord," says Honda Executive Vice President Koichi Amemiya. "We'll spend (incentives) mainly on the Accord."
Amemiya says that gasoline prices of about $2 a gallon in the United States, delivered "a body blow" to the industry.
The cautious outlook for Honda's most important model pushed the automaker to cut its North American sales estimates for the fiscal year through March to 1.56 million from the 1.565 million it projected earlier.
Amemiya expects 16.5 million to 16.6 million light vehicles to be sold in the United States this year.
"I'm not so optimistic" about the prospects for the industry, he says.
Last year, 16.7 million light vehicles were sold in the United States.
In the fiscal first half ended Sept. 30, Honda's North American operating profit slid 12.2 percent to 165.8 billion yen, or $1.55 billion at current exchange rates. The decline was the result of increased incentive spending on the Civic and Accord in the first quarter.
Unit sales in North America for the six months fell 3.2 percent to 757,000.
But operating profit in Europe jumped 37.2 percent to $216.6 million, thanks to the well-received diesel-powered Accord, the Civic and Jazz.
Business at home also was healthy with a 17.5 percent leap in operating profit to $781.6 million.
Robust profits in Japan and Europe, along with cost cutting and other efforts more than offset the North American results.
For the April-to-September period, Honda's consolidated, or group, operating profit rose 4.7 percent to $3.0 billion. Net income edged up 0.9 percent to $2.17 billion on top of revenues of $37.52 billion, up 3.5 percent.
I wonder how the camry is doing sales wise thus far? I know they cite gasoline prices for the lower sales figures, but does anyone think there are any other main contributers? I know the body is already 2 years old, but the sedan has still yet to grow on me and i think that holds true for many potential consumers out there. And while the coupe looks good imo, it still doesn't look as good as the 6th gen coupe.
I wonder how the camry is doing sales wise thus far? I know they cite gasoline prices for the lower sales figures, but does anyone think there are any other main contributers? I know the body is already 2 years old, but the sedan has still yet to grow on me and i think that holds true for many potential consumers out there. And while the coupe looks good imo, it still doesn't look as good as the 6th gen coupe.
i think gas prices...and people desire to hold on to there older vehicles..especially if they are paid for...i know i wanted a new accord but i figured why buy a new one when the one i have right now still runs perfect
i think gas prices...and people desire to hold on to there older vehicles..especially if they are paid for...i know i wanted a new accord but i figured why buy a new one when the one i have right now still runs perfect
Good point. Vehicles like the accord are bought for the long run by a lot of consumers i think too. I know we had our 90 accord in the family for a very long time. I still would have hung on to my 99 had i not run into financial issues as far as paying off school tuition and credit cards.
I haven't been keeping up with the new accords, but how do they compare price wise with the previous gen?
One last thing, the previous Accord seemed to have been a lot more conservative as far as styling, options, etc... Like the Altima/maxima, it seems to have gained a more sporty (and luxurious) look and feel. Kind of a big departure from the more pedestrian accord we've had for the last 6 gens. I see it as a warm welcome, but does this hand sales over to the more conservative, bland, and boring camry? It just almost seems like the more conservative a family car is, the higher its sales numbers.
Good point. Vehicles like the accord are bought for the long run by a lot of consumers i think too. I know we had our 90 accord in the family for a very long time. I still would have hung on to my 99 had i not run into financial issues as far as paying off school tuition and credit cards.
I haven't been keeping up with the new accords, but how do they compare price wise with the previous gen?
One last thing, the previous Accord seemed to have been a lot more conservative as far as styling, options, etc... Like the Altima/maxima, it seems to have gained a more sporty (and luxurious) look and feel. Kind of a big departure from the more pedestrian accord we've had for the last 6 gens. I see it as a warm welcome, but does this hand sales over to the more conservative, bland, and boring camry? It just almost seems like the more conservative a family car is, the higher its sales numbers.
Prices on the new accords are about the same as the prices for the 6 gen. I remember reading a thread posted on SHO saying that Camry sales were higher than the accord. I think people are still trying to adjust to the Accord design, especially the sedan.Toyota has become alittle more agressive with the Camry's to keep up with Nissan and Honda. You can add lip kits and upgrade to a bigger set of rims now. I think most people who go looking for a family car don't really care for huge amounts of horsepower or aggresive looks trend going on.They want a reliable car that gets them from A to B that doesn't look to bad and has good fuel economy. Of course at the end of the day, Honda's, Nissan's and Toyotas sell themselves. Look at the Civic: They have practically had the same engine with minimal gains since the early 90's but people continue to by them because there affordable and reliable,not to mention there fuel economy...
how bout Hybrid SUVs... i bet that will affect all the light car sales in US. Lexus got one.. Ford got one....uhm... who else gonna sell hybrids? well Jeep liberty sell diesel now.. so... i bet these mini SUVs that easy on the gas will become the popular vehicles.
how bout Hybrid SUVs... i bet that will affect all the light car sales in US. Lexus got one.. Ford got one....uhm... who else gonna sell hybrids? well Jeep liberty sell diesel now.. so... i bet these mini SUVs that easy on the gas will become the popular vehicles.
hybrids aren't making much of an impact just yet, they're expensive and still not too well received. i would agree with Honda and Toyota about the rise in gas prices as the main cause for lowered sales. people are more cautious fiscally, with respect to their car purchases, paying more and more attention to running costs of ownership than ever before. i know none of the Japanese automakers make all of their cars stateside, so they must be absorbing more and more cost from exporting to the US because of the higher fuel prices in order to maintain the prices of their cars fairly level.
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Honda made a mistake by making the accord design from Japan...now they are scratching their scalp on why does the 6th generation was MORE SUCCESSFUL compared to the 7th gen...especially with the coupe sales. I wish somebody would knock Tom Elliot's and whoever decided that they should redesign Accord back in their Tokyo Office's head and call them stupid for a year long!
The new accord sedan is sooo ugly even though I like honda I would easily by a camry or anything over it. I don't understand why they dont just look at the styling, thats the main reason people buy cars anyway.
for the month of october the camry sales went up +7.2 %, while accord decreased by 4.5%.
the main reason is the styling. it doesnt grow on many people. the accord styling is more of either you like it or you dont, theres no in between.
they should just cancel the two region design BS. i hate american designs.
well the day honda cars designed in US the sales started goin down and it getting too big and its no more midsize sedan. come on the 6thgen almost as long as an S-Class
for the month of october the camry sales went up +7.2 %, while accord decreased by 4.5%.
the main reason is the styling. it doesnt grow on many people. the accord styling is more of either you like it or you dont, theres no in between.
they should just cancel the two region design BS. i hate american designs.
don't forget camry sales are also combined with rental car fleet sales. The accord has out sold the camry in 9/10 years now if it just measured on a customer basis. Fleet sales are deeply discounted.
don't forget camry sales are also combined with rental car fleet sales. The accord has out sold the camry in 9/10 years now if it just measured on a customer basis. Fleet sales are deeply discounted.
yea, but the last gen accord beat the camry sales (even with the fleet).
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Is the styling really that bad? Although it spurs the same argument here in my country, most people agrees that the Camry design is more elegant but the Accord design is more young, hip and trendy (especially with large rims, and kits). And because the ratio of mid life crisis people and those who seeks status are the same here... Both cars are in the same level of sales... Not counting the newly released Nissan Teana/Maxima though, it might spoil Toyota and Honda feud.
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. They tried to inmitate a cheeta too hard 
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