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Honda profit declines on semiconductor crunch and raw material costs

TOKYO — HondaÂ’s fiscal first quarter profit fell 33% from last year as a global computer chip shortage, a pandemic-related lockdown in China and the rising costs of raw materials hurt the Japanese automaker. Tokyo-based Honda Motor Co. reported Wednesday that its profit totaled 149.2 billion yen ($1.1 billion) in the April-June quarter, down from 222.5 billion yen ($1.7 billion) a year earlier. Quarterly sales slipped 7% to 3.8 trillion yen ($28 billion). Honda kept its profit forecast for the full fiscal year through March 2023 unchanged at 710 billion yen ($5.3 billion). The semiconductor shortage has hurt all the worldÂ’s automakers, including Honda, despite strong demand, and the manufacturers have been scrambling to secure alternative suppliers. Honda, which makes the Accord sedan, Odyssey minivan and Civic compact, sold about 815,000 vehicles last quarter, down from 998,000 vehicles the same period a year earlier. Auto sales dropped in almost all regions around the world, including Japan, the U.S. and Europe. “I ask for the understanding from all those who are still waiting for their vehicles and vow that our whole company is doing its utmost to make the deliveries even a day sooner,” Chief Financial Officer Kohei Takeuchi said. Takeuchi said the semiconductor shortage curtailed motorcycle production as well as car production, adding to uncertainty about future prospects. Honda said the recent lockdown in Shanghai was among the causes of the shortage in computer chips supply but declined to give specifics. Although U.S. sales are potentially facing a dent from recession worries and other economic hardships, Takeuchi acknowledged he was more worried about the shortage problem and producing the cars customers were waiting for. Takeuchi noted that motorcycle sales for the quarter, which grew to 4.25 million motorcycles from 3.88 million a year earlier, were going strong, especially in India. The cheaper yen and cost cuts helped maintain profitability overall, he added. The yen has been at a two-decade low against the U.S. dollar. A cheap yen has historically worked as a boon for exporters like Honda by boosting the value of their overseas earnings when converted into yen. But it also increases costs for imported components and materials. JapanÂ’s top automaker Toyota Motor Corp. reported recently that its fiscal first quarter profit fell nearly 18%. Nissan Motor Co. saw its quarterly profit plunge to less than half of what it was a year earlier.

Acura is getting back into the performance game

Acura has had a tough time over the last few years determining its identity, but it seems that the brand is now settling on providing performance. At the Detroit Auto Show, Acura announced an expansion of the A-Spec trim, the revival of the Type-S moniker, and a new engine. That new engine is particularly interesting since it's a turbocharged V6, and only Acura will be using it. So don't expect to see some sort of Accord Type R with a crazy V6. Acura also revealed the engine will only be used with the company's Super Handling All-Wheel Drive (SH-AWD). Type-S is another big deal, since no Acuras have worn the badge since the 2008 Acura TL Type-S. It will be a step above the current A-Spec trim, which is mildly sporty. Past Type-S models have always had the most powerful engines available. The company didn't give an estimate for when the Type-S trim will appear, nor what model will get it first. All new Acura models will have an A-Spec option in the future. The first new A-Spec addition will be the TLX with the 2.4-liter four-cylinder. The V6 version already has an A-Spec option. After that TLX, the new RDX will launch with an available A-Spec trim. The company already announced the RDX will have a version of the 2.0-liter turbo four-cylinder from the Civic Type R and the Honda Accord connected with a 10-speed automatic and SH-AWD. An Acura representative said that the engine has been reworked for the RDX, and it will make more power than the Accord with the 2.0-liter engine. Related Video:

Jay Leno finally gets his hands on the 2017 Acura NSX

It has been five years since Jay Leno and Jerry Seinfeld starred in a commercial about which one of them would get the first example of the new Acura NSX. After a long wait, they finally get a chance, but Leno is the first to check out the coupe in the latest video from Jay Leno's Garage. The denim-clad host spends over 30 minutes with lead designer Michelle Christensen and Ted Klaus, global development chief engineer, to get the full scoop on the hybrid supercar. Leno and Christensen get into the nitty-gritty about the design process for the latest NSX, and she points out her favorite parts of the finished product. She had quite a challenge creating the new supercar. Over the model's long gestation, every adjustment to the shape forced changes elsewhere to direct the airflow correctly, and then the decision to switch to a different engine configuration added even more time. Klaus focuses on the engineering side, like using the Ferrari 458 and original NSX as the major benchmarks for the new one. He also takes a ride with Leno, and the comedian even cracks a grin driving it. Leno doesn't usually show much emotion behind the wheel, so the little smirk is high praise from him. Carve out some time for a detailed walk-through about the 2017 NSX in the latest clip from Jay Leno's Garage. Related Video: