Despite an auto market that is down more than 10 percent this year, Honda has been able to buck the downward trend and has actually seen a sales growth of just over 1 percent so far this year. Because of this fact, Honda’s gloomy outlook on the future should have other automakers shaking in their tires.
At the Reuters Autos Summit in Detroit, John Mendel, Honda’s head U.S. sales exec, revealed that the Japanese automaker is bracing for the worst in the wake of the recent Wall Street fallout. Mendel says that Honda is expecting a U.S. volume between 13.8 million and 14 million units in 2008, but that volume could dwindle to as low as 13.5 million units in 2009.
Moreover, the market hangover could linger into 2010, pushing back the domestic automakers return to profitability – which is starting to sound like a broken record.
However, despite the less-than-optimistic outlook, Honda has left itself in a rather safe place. Because it is not fully exposed to the collapsing truck and SUV markets, Mendel expects a modest sales gain in 2009. “We’re still looking at a slight increase at least initially in 2009. We have new vehicles coming on,” he told Automotive News. “Given any kind of stability in trucks, we should be able to eke out a little increase in 2009.”
Highly-efficient vehicles like the all-new Fit and Insight hybrid — which will hit the market in late 2008 and early 2009 — should rally Honda sales through 2009, even if gas prices return to record highs.
09/18, 7:23 PM
posted by:
johnnycanuck
Word of advice to Detroit: punt!
09/18, 9:58 PM
posted by:
sprockkets
Oh noes! A .5 million decrease in sales and Honda is done for!
The beautiful part of our economy is that without 3% growth, it cannot survive. And that is 3% from last years growth, which means the growth is exponential. Anybody that thinks exponential growth is feasible for years to come is either a moron or an economist.
09/19, 1:25 AM
posted by:
gooch02000
The reason our economy “can’t survive” is because the Fed keeps printing money out of thin air and bailing out companies, giving banks tons of this fake money (which they then give to poor-credit homeowners as loans, etc)…
The market is just readjusting itself now. In the form of the housing bubble and the collapse of the dollar. You ever wonder why the Fed doesn’t report the M3 (total) money supply stats anymore? Because it keeps increasing at an insane rate (because they print money out of thin air).
That’s why our economy is sucking penix right now.
09/19, 5:57 AM
posted by:
Jessica Ann Simpson
Funny how you mention banks, cause like WAMU just recently filed for bankruptcy. Thank you government!
09/19, 10:21 AM
posted by:
golf4me
what fallout…market’s up 700 points over last 2 days…
just another stupid overreaction.
09/19, 10:22 AM
posted by:
Need more oil for GM
One more victim of GM’s success. Honduh has been in GM’s sightlines for years and will put a final nail in its coffin with the new Equinox, Cruze and Volt.
09/19, 10:39 AM
posted by:
zeeck
well Golf4me, that is only after it fell 500 points in one day, yeah, sounds like the economy is stable alright
Need more Oil: lolz
09/19, 11:39 AM
posted by:
shaver
How can this be when Hyundai, Fiat, Renault-Nissan, PSA, VW-Audi and Toyota all just within the last 9 months announced plans and intentions of huge near future growth.
09/19, 11:59 AM
posted by:
Xile
The fundamentals of this pig with lipstick on the bridge to nowhere are strong
09/19, 12:59 PM
posted by:
RaineMan
We all know that it’s really about God, religion, and guns.