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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Honda recalling nearly 900,000 Odyssey minivans over fire fear

Honda is recalling nearly 900,000 2005 to 2010 model year Odyssey minivans due to a fault with the fuel pump that could cause them to catch fire.
According to the National Highway Traffic Safety Administration filling, if exposed to "acidic chemicals and a high temperature environment," the cover of the fuel pump strainer could crack and cause a gasoline smell in the minivan or possibly allow the fuel to leak out. Denso supplied the fuel pumps on the vehicles, and the report says that Honda first began studying the problem in October 2012 but didn't finally confirm the cause until March 6, 2014. The recall affects 886,815 Odysseys, and Honda has received 187 warranty claims related to the issue. However, there have been no fires or injures reported.
Unfortunately, Honda says that it currently doesn't have enough replacement fuel pumps to fix all of the vehicles and doesn't expect to have the parts ready until this summer. It's sending a letter to owners telling them about the recall and is sending a second notification when the pieces are at dealers. The entire notification including affected VINs can be viewed as a PDF here, and the shortened version from the NHTSA can be viewed below.

Honda Odyssey Hybrid greens up your minivan

Almost neglected completely at the Honda press presentation at the Tokyo Motor Show today was what could be a true game changer. Lots of people drive minivans. Lots of people like hybrids. There are even some hybrid minivans for sale in Japan. But Honda has never offered its popular Odyssey premium minivan with a gas-electric powertrain. That's about to change. Too bad this fact was not mentioned at all during the press conference. The hybrid Odyssey was on the show floor, though, and a press pack distributed by Honda says that the minivan will have an updated dual-motor Sport Hybrid i-MMD powertrain "for outstanding environmental performance and powerful acceleration." Honda also says that this is the first time is has put the IPU (the Intelligent Power Unit, made up of the battery and Power Control Unit) under the front row seats. Overall, the powertrain update offers a, "new hybrid driving experience," Honda says, and that now, "the Odyssey Hybrid makes minivan travel more enjoyable than ever." The van also seems to be of a high specification, with plush seats, dark micro-fiber decorating the dash and forward areas, and captains chairs that look primed for napping. Hauling your family the green way comes with some creature comforts, it seems. Honda isn't any details about the environmental benefits of putting a hybrid powertrain into the Odyssey, but when the rumor of this vehicle first appeared, there was talk of a 50-percent reduction in fuel use. For a number of reasons - most important being that the American and Japanese Odysseys are very different vehicles – it's unlikely that a hybrid Odyssey will be available in the US any time soon. Featuring updated SPORT HYBRID i-MMD for outstanding environmental performance and powerful acceleration The most comfortable environment possible for transporting a large number of people. In fulfillment of this concept, the Odyssey premium minivan brings together a generously roomy cabin, distinctive styling, and an exhilarating yet steady driving experience. And now the Odyssey will also be available as a hybrid vehicle. Featur- ing a new power control unit with a compact and concentrated structure for outstanding power density, the innovative dual-motor SPORT HYBRID i-MMD hybrid system offers both outstanding environmental performance and the powerful acceleration of an electric motor.