Despite Honda’s comparatively small drop in September sales – down just 1.1 percent – and increasing global demand for its products, the automaker’s operating profit fell nearly 81 percent in North America during the second quarter. Honda says that reduced demand – down 9.9 percent overall during the quarter – hurt its operating profit.
Honda has revamped its North American production to focus more on the efficient Civic and four-cylinder Accord rather than its Odyssey minivan and Ridgeline pickup, but the automaker still expects 2008 to post a sales decline in North America.
Honda expects North America to be the only market to decline in 2008 and current company estimates put the drop at about 6.6 percent lower than last year.
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10/28, 11:47 AM
posted by:
rds130
How in the HELL does your proft fall 81% yet, North American demand for your North American product is up over nearly all of your competitors? The Ridgeline, Odyssey and Pilot haven’t done THAT bad. lmao
10/28, 11:59 AM
posted by:
coolguy8157
It seems to be that they are selling everything below invoice just like everyone else out there…
10/28, 12:15 PM
posted by:
johnnycanuck
At least they’re still turning a profit. The last time Detroit heard anything starting with a ‘p’ the Lions were on 4th down.
10/28, 12:24 PM
posted by:
gehrhardt
I have a feeling it has to do with the yen – USD exchange rate.
10/28, 1:05 PM
posted by:
carstuff
Not really, Honda is the one importer that actually makes a very high percentage of their vehicles here. I think that they just made a lot of profit on the larger vehicles (trucks, minivans, V6’s) and very little on their small/inexpensive vehicles. If Honda has it bad Toyota is going to be a lot worse as will the domestics.
10/28, 2:57 PM
posted by:
Borat
carstuff is right. ’cause smaller cars deliver smaller profits margins are down, but not out. In any event making profit is better then loosing shirt.
Then again, US taxpayers will rescue Detroit at huge cost. Those fat cats will cut even larger bonus checks to themselves. Perhaps Detroit is SMARTER then japs.
10/28, 6:07 PM
posted by:
1c3d0g
D@mn…I wanted this to happen to Toy Ota. Oh well…there’s always next quarter…
10/29, 9:07 AM
posted by:
ricky_b
Borat – that should be a condition in any bailout… all Execs should be required to take significant paycuts and all bonuses should be eliminated until their debt is paid back in full to the taxpayers. It’s time to hold Execs accountable for their mistakes.
10/29, 9:17 PM
posted by:
t-ak-box
@ricky_b
I go one better.
Executives shouldn’t get paid until the company starts to regain profitability. There’s no reason these NA Exec’s should make 550% more than the lowest employee in their company as their company continues in a death spiral.