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Profit at Honda doubles on strong global sales of cars and motorcycles

TOKYO — Honda reported Wednesday that its April-June profit more than doubled on healthy sales of its motorcycles and cars, as the Japanese company also received a perk from favorable exchange rates. Honda Motor Co. said its fiscal first quarter profit totaled 363 billion yen ($2.5 billion), up from 149 billion yen. Quarterly sales jumped 21% to 4.6 trillion yen ($32 billion). HondaÂ’s financial service division also reported growing sales. Honda said its profitability improved, especially in North America, where production recovered. Automakers around the world were slammed by supply shortages because of production delays related to social restrictions caused by the COVID-19 pandemic. But such restrictions have eased, allowing production to pick up again. Auto sales were about the same in Japan in the latest quarter as in the previous year, while dropping significantly in China because of intense competition from makers of battery electric vehicles, Honda said. Honda is banking on growth in EVs in the U.S. market, where it recently announced it is joining six other companies in the creation of a high-powered charging network across North America. Worries about climate change have helped set off a dramatic shift in the auto industry toward battery electric vehicles, allowing for relative newcomers like Tesla and BYD to prosper, while catching some Japanese makers off guard with their hybrids and regular gasoline-powered models. Honda said a computer chip shortage crimped its motorcycle sales in India, while sales rebounded in Indonesia as production recovered. Honda said it sold 901,000 vehicles in the latest quarter, up from 815,000 a year earlier. It also sold more motorcycles worldwide at nearly 4.5 million, up from 4.2 million. Honda added 23 billion yen ($160 million) to its quarterly operating profit because of the impact of currency exchange rates. A weaker yen, trading lately at about 143 yen to the U.S. dollar, is a boon for Japanese exporters by boosting the amount of its overseas earnings when converted into yen. Honda stuck to its full year projection of an 800 billion yen ($5.6 billion) profit, up from 651 billion yen a year earlier. Honda shares slipped 0.9% on the Tokyo Stock Exchange. Related video: Earnings/Financials Acura Honda

2019 Acura RDX crossover gets turbocharged power, A-Spec version

NEW YORK — Calling the RDX that Acura showed at this year's Detroit Auto Show a "concept" was stretching that term to the limits of credulity. The production version of the 2019 RDX is here, and this turbocharged crossover with available AWD looks darn near identical. While it offers all-wheel drive like its Lexus NX and Audi Q3 competitors, Acura's next-generation SH-AWD should be a serious selling point. Let's cover that "Super Handling All-Wheel Drive" system for a moment. It takes power from the 2.0-liter, 272 horsepower and 280 pound-feet of torque engine and routes it up to 70 percent rearward, and there's real torque vectoring (rather than brake-based faux vectoring) to shift 100 percent of that rear axle power to either wheel. The broad strokes are similar to the outgoing model's system, but there's much more available rear power bias — in the 2016 model, up to 40 percent could be sent to the rear. And that was up from 25 percent for pre-2016 models. The takeaway is that the RDX should handle a lot better on both dry and slippery pavement, and feel a bit sportier doing it. A new engine may help as well. The outgoing 3.5-liter V6 is replaced by a turbocharged four-cylinder, almost certainly related to the unit in the Accord and Civic Type R, and tuned somewhere in between those cars (252 and 306 horsepower, respectively). We expect the new engine to be lighter than the old V6, and less weight off the front end should improve steering feel and handling. For those keeping track, the new engine is down 7 horsepower but up 28 pound-feet in torque, and thanks to turbocharging the torque band starts down low and is relatively flat, so more oomph from a stop and on through the rev range. The six-speed automatic is gone, replaced by a 10-speed automatic. Most of its competitors use six- or eight-speed units, so that'll be a marketing focus. As you'd expect, the individual ratios are closer-spaced but the total ratio spread is, according to Acura, 62 percent wider than the outgoing automatic. There are steering-wheel-mounted paddles if you'd like to shift yourself. Since the styling is very much a lightly retouched Prototype RDX from the Detroit show, it's nice to be able to give a sense of the new car's proportions with hard numbers. First of all, it's riding on a 2.6-inch longer wheelbase. Overall length is 187 inches, up from 184.4, and width is unspecified.

Sony Honda EV venture's plan for online sales has dealers squirming

TOKYO/DETROIT — A new joint venture formed by Japan's Sony Group Corp and Honda Motor plans to introduce a premium electric vehicle later this decade, and the automaker's U.S. dealers are anxious to be part of the sales process. Sony Honda Mobility said on Thursday it was aiming to deliver the first of the unnamed EV by 2026, starting in the United States, and will sell them online. The success of Tesla at selling EVs without franchised dealers is putting pressure on established automakers to overhaul their retail networks. That leaves dealers across most brands concerned about their place in the changing world and whether profits will be squeezed. The online aspect of the Sony Honda plan, as well as the lack of details around how the vehicle will be sold and serviced, has raised questions with the Honda and Acura brand dealers. Many nonetheless expect Honda to work through the existing retail network. "These issues are certainly a concern," said Brian Benstock, general manager and vice president of Paragon Honda and Paragon Acura in Queens, New York. "The best path forward is with the dealers." "We have a role (automakers) can't replicate," said Benstock, who also is on the Acura national dealer advisory board and has spoken with Honda officials about the new vehicle. "There's no way that Honda wants to hurt their existing dealer body." Some dealers questioned why Honda would even consider trying to work outside the current U.S. sales network given its national reach. Honda has about 1,100 Honda dealers and 270 Acura dealers. A Honda spokesperson referred questions about the joint venture to the new company. Sony Honda spokesperson Mai Nagadome said there are still a lot of details to finalize, but selling through the dealers has not been ruled out and customers would feel uneasy without some kind of after-sales service process. "The cost of continuing to develop (internal combustion engine) products along with EVs and autonomous tech and software for the next generation vehicles is proving to be quite the challenge," said Peter Hennessy, dealer principal of Atlanta-based Hennessy Automobile Companies, which includes a Honda store. "I get teaming up with Sony, but it should be done in conjunction with the dealer network, not outside it," he added.