Toyota is already facing a huge crisis as it has recalled a large number of vehicles in order to fix the sudden acceleration of pedal. Now, Honda has to recall around 167,000 Acura TSX cars over the complication of power steering hoses. The problem is very serious as it could cause fire in the car. So far, news of only one minor fire incident has been reported, but no body was injured.
The recall involves TSXs from the 2004-2008 model years. The National Highway Traffic Safety Administration says on its website that high temperatures under the hood could cause the power steering hose to crack and leak power steering oil.
No doubt, it is very dangerous and Honda should collect all the models sold in between 2004 and 2008 and fix the problems. Otherwise, it could have a long lasting impact on the company’s reputation. Honda may face some financial lose, but a big accident could cause an irrecoverable loss. Toyota should also do the same thing, if it wants to keep its reputation intact.
Honda Motor Co. has seen huge operating profit in the last financial year. A Nikkei report revealed that the Japanese automaker almost doubled its operating profit in the year ending to March as its yearly profit increased by 90% to 360 billion yen which is even more than company’s expected profit of 320 billion yen. Honda saw excellent success in the emerging markets like India and China and it is now planning to grab more market shares in those markets. Honda is also getting huge response for its hybrid cars in the US.
While Honda is going through a good time, its domestic rival Toyota is facing a tough time. Toyota is all set for a huge recall leading to its share falling down. Naturally, Honda would like to capitalize on its huge demand in the emerging markets, while under pressure Toyota would have to find out ways to get out of the tough situation and regain its shares in the market.
Japanese car maker Honda has introduced a small concept car which is named “New Small” in the currently ongoing Delhi Auto Expo 2010. Smartly designed, the new concept car reflects the futuristic view. The company is planning to launch this small concept car in India and Thailand in 2011. This new small car is different from other small cars currently available in the market mainly in terms of its attractive design.
The front has a pair of striking pulled back headlamps with LED being the source of illumination, giving it a very futuristic look. The grille has a prominent arrow shaped which extends over to the engine bonnet and the large Honda logo taking centre stage. Below you can see the gaping air inlet split horizontally by a thin bar which ends in cool looking fog lamps.
This car will feature 1.0L version of VTEC engine from Honda and it could also feature 1.2L version of Jazz engine. The price and the fuel efficiency are the points where this New Small car could exploit in the market.
China is definitely one of the most lucrative automobile markets in the world as it is growing rapidly. So, it is natural that automakers would like to have a strong foothold in China’s auto market. In fact, China is one of the fastest growing auto markets in the world. Keeping this in mind, Japanese auto maker Honda is now planning to open up a new plant in China, having seen demand rising in India.
Honda already has 4 car plants in China and the new plant will help Honda increase its production capacity in China significantly. This fifth plant will churn out 120,000 units per year, and thus, leading Honda’s total China production to 730,000 per year, 20% increase from the current capacity of production.
It is pretty much understandable that Honda does not want to lose its market to any other automaker in this highly potential Chinese market. After the economic recession is over, China’s auto market is gradually becoming stronger and stronger as government has also taken some good initiatives.
After getting elected, president Obama is strongly advocating the idea of fuel efficiency and better and less environment pollution from cars. You know that in USA, there are nearly eight hundred cars against one thousand persons and they have the highest number of cars in the world despite the fact that both India and China have more than three times population than USA. So, now the Obama administration is trying to push the car companies to produce more fuel efficient cars. It was very interesting to see that the top three companies in this sector are all Asian. In the first place, there is Honda, Hyundai and then Toyota. Honda and Toyota are Japanese companies where as Hyundai is from South Korea. US car companies are much behind than Asian and European companies.
Well, I think that fuel efficiency is a very important thing for a country like USA where almost everyone has a car. Car is a very bad thing and it can really affect the environment. I think that the Obama administration should make the government agencies to buy fuel efficient cars. The main problem is that most consumers are not yet conscious about it. Of course in net I am of economic recession fuel, most people can not think of efficiency or any other factor and are not eager to change their car or pay more money. So, I think that they will have to wait a little longer about this matter. Environment pollution is a big problem for the whole world not just for USA.
Honda has decided to transfer its motorcycle production from its Barcelona plant in Spain to Italy in its pursuit to revive its motorbike market in Europe. Though the Japanese automaker has been pretty much successful in the motorcycle market of India, it has lost significant chunk of market share in Japan, Europe and in the US. Naturally, Honda is working to revive its European market.
However, Barcelona production capacity will continue making motorcycle until March next year, and after the company will produce parts in Barcelona plant. Honda is traditionally a strong player in motorcycle market, and it is one of the most popular brands for the two-wheeler. So, the auto maker would now try to capitalize on that advantage in the European and US markets.
Honda has revealed that November 20 would be the launching date of 2010 Honda Accord Crosstour. Price would start at $29,670 and $710 would be added to the price as the destination and handling charge of the vehicle. The car features 3.5-liter V-6 engine besides the automaker’s fuel-saving technology.
Accord Crosstour comes in two models: EX and EX-L. EX model features dual-zone air conditioning, a stereo system featuring seven speakers and it also has a moonroof as well as chrome detailing. Among the features of EX-L include leather trim, Kevlar cone speakers, USB audio interface as well as optional satellite navigation.
Japanese automaker Honda is planning to introduce the concept model of CR-Z hybrid car in the Tokyo Motor Show 2009 this month. However, Honda has also declared that it would bring out the North American Production model of CR-Z car in Detroit Auto Show 2010 due to take place in January.
The only difference between the concept and the production model is that Honda CR-Z model does not feature any rear seat, and thus, accommodating only 2 persons. The North American production model has a sporty look and its six-speed manual transmission will allow the riders feel comfortable ride.
You know that Hybrid car has been very successful over the last one year in the US mainly because US consumers have become more conscious about fuel economy and environment friendly vehicles. Specially, the economic recession struck heavily in US economy has led people to take hybrid cars very seriously. At the same time, environmentalists have been able to create a consciousness about emission and its impact on environment. Overall, hybrid car market is getting stronger day by day.
You know that Toyota is leading the market with big margin, while fellow Japanese car maker Honda takes the second place in the hybrid car market in the US. However, now it seems that Ford is trying heart and soul to overtake Honda to clinch the second spot in the hybrid market. Ford marked huge growth in its hybrid sales in the first three quarters of the year. The company sold 26,016 hybrid cars in the first three quarters, 73 percent year-on-year increase. For the same period, Honda observed only 8 percent year-on-year growth in the US, selling 29,958 hybrid vehicles in the first nine months of the year.
It is pretty much clear that Honda is going to face some strong challenge from Ford in the near future and there is every possibility Ford could overtake Honda at the second place in the hybrid car market. However, Toyota does not need to worry a lot yet as the Japanese automaker still has a very strong foothold in the hybrid market, but Toyota should remember the fact that hybrid market is still in its infancy and has not been explored fully yet. So, it would continue growing in the years to come. So, other automakers have lot of rooms to grow their share in the hybrid car market.
Considering the theme of the upcoming Tokyo Motor Show 2009: Fun Driving for Us, Eco Driving for Earth- Japanese automakers like Toyota and Honda are going to unveil some of their eco-friendly concept car models at the show. The 13-day-long Tokyo Motor Show will start from 23 October and continue till 4 November at the Makuhari Messe in ChibaCity of Japan.
All the futuristic models will highlight environment friendly technology as well as fuel efficiency Toyota will come up with EV II concept model which is an ultra compact electric car. The specialty of the car is that it saves space by giving all the driving controls including accelerator, brakes and steering wheel in a hand-held joystick. That means, it does not feature the conventional accelerator and brakes paddle. The car can accommodate 4 passengers including driver.
Another Japanese automaker Honda will introduce its Skydeck hybrid minivan concept car. The six-seater features a sliding door for the front row passengers and a scissor-wing door for the second and third row passengers. The car places its hybrid system in the central tunnel, in stead of placing it conventionally behind the back seats.
Motorbike maker Honda has recently unveiled VFR1200F sports motorcycle which will be released in the first half of 2010. Honda will show the two-wheeler in December and the price will be released in December too. VFR1200F would be the latest addition to Honda’s traditional VFR family and use V-4 technology. The 1237cc bike will feature eye-catching design targeting the new generation riders. Honda 2010 VFR1200F was introduced by the company at a pres conference arranged in Honda’s USA headquarter located in Torrance, California.
Honda's V-4 heritage and VFR tradition is fully realized in the VFR1200F. It has been re-created in astonishingly innovative form through the fusion of advanced technology imported from the MotoGP world and other cutting-edge environments. Net result: a futuristic sport motorcycle created for the sheer joy of riding, custom tailored for experienced hands who ride hard, ride long, ride far and ride often.
So, it is pretty much clear that Honda has a long term plan with VFR1200F model and it is expected that VFR1200F would be the benchmark model for Honda. Depending on the success of this model, Honda would plan its next models.
It was known to all that the current Obama administration in America is very sensitive about environmental issues. One of the biggest challenges for environment in America is the matter that against every 1000 people, there are nearly 800 cars. So, it is one of the major causes of environment pollution in the country. Thus, environmental friendly cards are becoming very attractive for many consumers and car manufacturers. Now, Honda company has stated that they are going to make an electronic car and take it in the American market but it is not clear when it will come out in the market.
A spokesperson for the company, Japan's No. 2 automaker, said it was developing an electric car but had not decided when to launch it.
The company could also not comment on the Nikkei business daily's report, without sources, that a prototype of the car would be unveiled at the Tokyo Motor Show in October.
The vehicle is expected to be around the size of a minicar, the Nikkei said.
The reality is that electronic cars very expensive to produce and it is difficult to charge them in a short time. So, it is obvious that it would take a lot of time before we can find a real good electric car.
It is not only Toyota but also Honda suffering during the time of economic recession in India. I am not surprised with this news because condition of Indian economy has not been good in the last one year. Hardly anyone now talks about high economic growth in the country. Export earning suffered a series of setbacks in 2009 so far. Even in the outsourcing sector, there is less optimism now. In such a time, most people do not want to think of buying a new car.
The two leading Japanese car-makers — Honda and Toyota — saw the fortunes of their Indian operations dip in 2008-09, with Honda Siel Cars India Ltd reporting a loss for the year, while Toyota Kirloskar Motor Pvt Ltd saw its profit fall 41 per cent.
The vehicle sales of the two companies fell, resulting in a drop in income.
Both the companies have said in their annual reports that their operations were affected by the general economic slowdown, rising input costs and the weakening rupee.
I think that both Honda and Toyota should come with some inexpensive car models just for the Indian market. Maruti and Hyundai are successful in Indian market and both of them focus on inexpensive cars.
Honda is going to start production at its Swindon plant from Monday following a four-month halt in production due to slower demand. Now, it has been reported that the workers have come to terms with a 3% cut in their salary for the next 10 months, while managers have agreed to work with a salary reduced by 5%. Production at the Swindon plant was initially stopped for two months: January and February, but the production halt extended till May.
Honda has also reduced its yearly production target at the plat to under 113,000, a sharp fall from the initial target of 228,000 vehicles. Production of Honda Jazz supermini would start at Swindon plant from September. Honda saw 16% decline in sales in April 2009 compared to the same period of last year. First quarter sales of this year were also reduced by 34% in terms of year-over-year comparison. Honda has seen some good success through its newly launched hybrid car Honda Insight in the US. So, I think, Honda should try to promote Insight hybrid car more extensively in the UK too.
Workers started retuning to work at Honda’s Swindon plant in Britain as the company is planning to restart its production for Honda Jazz model. The plant was forced to close down for four months following significant drop in its sales. Honda Jazz is reported to be cheaper, more environment friendly and fuel efficient car.
Initially, work of metal-pressing plant is going to open as the company is planning to start production next month. This seems to be a positive sign for Honda as the company has seen slight increase in its demand thanks to its Honda Insight hybrid car. Now, it is yet to see if Honda can grab more market share with his upcoming model Jazz.
Toyota has started selling the third version of its highly popular hybrid car Prius in Japanese car market. The revamped Prius model goes on sale with a price tag of 2.05 million yen ($21,600). Toyota Prius is the leading car model in hybrid car market and since its launch in 2007, more than 1.25 million Toyota Prius have been sold so far.
However, another Japanese auto maker Honda came up with its own hybrid model Insight last February, and since then, Honda Insight has been a threat for Toyota Prius in the hybrid car market. That is why, Toyota has also revamped its Prius model recently in order to stave off the challenge posed by Honda Insight.
Toyota has now decided to sell 10,000 Prius per month in the domestic market (Japan) which is double the domestic target of Honda for Insight. Honda Insight has also become the first gasoline-electric car to have highest monthly sales in Japanese car market. Now, it seems that Honda Insight will also face a strong challenge from the third version of Toyota Prius in the domestic market in Japan.
Automobile industry is suffering a lot due to the global economic recession. Leading car makers like Toyota and General Motors are facing operating loses due to huge fall in demand. General Motors even received government stimulus to survive in the market. Still, Takeo Fukui, the CEO of Honda, has expressed his hope to see a rise in demand in the second half of the current fiscal years ending to 2010.
Despite the economic recession, Honda Motor Inc. could successfully remain profitable in the last fiscal because of decreasing warranty costs. Fukui thinks that the current fiscal year would be better than the last year with demand increasing slightly.
Well, American government is trying heart and soul to come out of ongoing economic slowdown as soon as possible by investing in business companies in the form of stimulus and thus it seems that the condition might be improved very soon, but it is also true that there could be some dangers as well in future because the government is trying to solve the economic problem in an artificial way.
Japanese automaker Honda has seen 25.3% drop in its US sales in April from the year-earlier period. Honda sold 101,029 vehicles in the US in April in which 2096 were second generation Insight hybrid cars which are considered to be a threat for Toyota Prius, a popular hybrid car from Toyota.
Well, you may not be impressed by Honda’s Insight sales in April, but do not forget that the car came into the market late in March and it has been only 1 month. On the other hand, Toyota Prius were sold 8385 volumes in the US market in April which is a sharp 61.5% fall from the amount sold in the same period of last year.
Honda has set their target to sell 100,000 Insight hybrid cars per year in the US market, and wants to sell 200,000 Insight cars per year globally. Well, this is the period of economic recession and car companies are facing huge challenge to survive in the market due to slow demand. However, hybrid car seems to be a good option for the consumers as hybrid cars ensure high mileage, cutting down the fuel cost.
It is now the time of global economic recession and the situation is getting aggravated gradually. Global auto market has also suffered a lot because of economic slowdown as many car makers including General Motors and Chrysler are struggling for survival, while the companies like Toyota is facing operating losses. So, you can see how intense the condition is at this moment.
However, Honda Motors have somehow managed to avoid an operating annual loss for the financial year to March 2009, even though the company experienced $1.9 billion loss in its recently quarterly result. In fact, Honda saw 186.1 billion yen loss during the January-March quarter, compared to a year-earlier profit of 25.43 billion yet. However, overall, Honda recorded 137 billion yen yearly profit, a decline by 77 percent from the profit of the previous year.
Honda also suffered a lot due to economic slowdown. Falling sales and increasing inventories forced the automaker to cut its production. However, the Japanese automaker could see some success through its motorcycle and low-cost car lines. Moreover, the company’s aggressive pricing also helped it remain profitable.
Honda has seen extensive drop in their US sales during the first quarter of 2009. In the first three months of 2009, Honda sold 230,985 vehicles in America, 35 percent drop from year-round volume of 352,642. Honda America’s sales in March declined by 36 percent to 88,379 vehicles, compared to 138,734 vehicles sold in the same period of the last year. The only model which showed excellent prospect last month in the US is Acura’s TSX sedan as sales of this model was increased by 12 percent.
This is the time of economic recession and global auto industry has been badly hit by it. It is not surprising that Japanese automaker Honda is struggling in the USA alongside other market leaders like Toyota and GM. Honda is hoping to have a good business in the America with its Insight hybrid car. Well, I do not think that the hybrid model could turn Honda’s world around in the world’s biggest auto market until the overall condition of global economy improves. Due to economic slowdown, many factories were closed down and some decreased their production volume, and thus, the fuel price has been decreased extensively. So, a hybrid car does not seem to create a big difference.
