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Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

Honda CR-Z will run Pikes Peak with full-EV power

Honda is running a CR-Z at Pikes Peak this year. But as you might have guessed, this is no ordinary CR-Z. This particular racing prototype packs an experimental powertrain. Though precise technical specifications remain a closely guarded secret at this point, our source at Honda has confirmed a few key details. For starters, the CR-Z racer packs a fully electric powertrain, ditching the 1.5-liter inline-four that forms the internal-combustion component of the street-legal model's hybrid propulsion system. This contrary to circulating rumors that it could be packing the hybrid powertrain from the new NSX. Whatever the details of the electric motor (or motors) on board, they'll be driving and steering all four wheels through Honda's proprietary Super Handling All-Wheel Drive (SH-AWD) and Precision All-Wheel Steer (P-AWS) systems. The technologies ought to make the CR-Z racer pretty adept at tackling the 156 twists and turns of the world-famous Race to the Clouds. The aero package is obviously pretty aggressive as well, and the bodywork appears to have been modified to an even greater extent than the carbon-fiber prototype we drove in Japan. Driving duties will be handled by Tetsuya Yamano, a Japanese driver known in the Super GT series (where he won the GT300 title in 2004 in an NSX) and for running Civics in Gymkhana events back in the 90s. It'll be competing in the Pikes Peak Challenge Exhibition class, but the idea behind the CR-Z prototype is as much about experimentation as it is about results. The project will serve to train some of Honda's younger engineers. They won't be alone on the mountain, though, as Honda also recently announced that it would be fielding its new ARX-04b Le Mans prototype at Pikes Peak this year as well. Related Video: Featured Gallery Honda CR-Z SH-AWD P-AWS Pikes Peak News Source: Honda Green Motorsports Honda Green Culture Hatchback Electric Racing Vehicles pikes peak hill climb

Honda charged another $363 million over Takata airbags

The Takata airbag recall is growing increasingly expensive for Honda. In the latest hit to the automaker's bottom line, the company is revising the expected costs of its global safety campaigns by an additional 44.8 billion yen ($363 million) after the massive expansion in May. Months ago, Honda announced that it had set aside 50 billion yen ($425 million at the time) to meet the predicted expenses. According to Automotive News, due to the rather arcane laws of accounting, these new costs will actually be applied to the fiscal year that ended on March 31, rather than the current one. Honda's revised earnings will be announced in late June. The company previously reported an operating profit of 651.7 billion yen ($5.3 billion), which was down 13 percent from the previous year. There has been no change to planned dividends for investors. In the US, Honda and Acura have a total of about 6.28 million vehicles in need of a replacement airbag inflator, and the automaker says about two million of those are already repaired. In addition to the Takata campaign, the company has faced other financial setbacks during this calendar year. For example, in early January, it received a $70 million fine from the National Highway Traffic Safety Administration for failing to report 1,729 cases of injuries or deaths over 11 years. As part of a strategy to improve quality globally, Honda cut back its global sales forecasts for the coming year, and it also decided not to make any volume predictions through 2017. To: Shareholders of Honda Motor Co., Ltd. From: Honda Motor Co., Ltd. 1-1, Minami-Aoyama 2-chome, Minato-ku, 107-8556 Tokyo Takanobu Ito President and Representative Director Notice of Events after the Reporting Period Regarding Product Warranty Expenses Honda Motor Co., Ltd. (the "Company") and its consolidated subsidiaries have been conducting market-based measures in relation to airbag inflators, such as product recalls and a Safety Improvement Campaign. Due to factors arising since May 2015 such as an expansion of the scope of these market-based measures based on an agreement between our supplier and the U.S. National Highway Traffic Safety Administration, a change has arisen in the estimate relating to product warranty expenses. The amount of product warranty expenses now expected to be incurred is 44,800 million yen.