2001 Honda S2000 Roadster on 2040-cars

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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.

The Honda Neowing is a future-retro GoldWing trike

Honda hasn't made a flat-four powered GoldWing since 1987, so it's not that odd to call this trike styled like a Transformer more traditional than the current 'Wings. Then again, with that extra wheel up front and a hybrid drivetrain, it couldn't be less traditional. The styling is decidedly modern, marrying the unabashed futurism of the NM4 with some sport-touring cues. Honda says the Neowing is intended to explore whether the company can combine higher-speed engagement (read: leaning) with low-speed stability. A rider can't fall over at a stoplight on a Neowing, an important consideration when the current GoldWing weighs 904 to 933 pounds. The leaning ability is provided by a proprietary linkage, and even though its method of operation isn't specified, don't be surprised if it's largely the same as a Piaggio MP3 – a pioneer in the leaning three-wheel category.If you're wondering if the Neowing can make it to production, or whether it will look anything like this concept, consider the NM4, pictured at right. That motorcycle pairs pure concept styling with unconventional mechanicals, like the six-speed dual-clutch transmission that allows for full automatic operation. Both the styling and the DCT are intentionally disruptive in the segment; Honda wants to bring in nontraditional riders, and perhaps new riders. The DCT will appeal to those intimidated or uninterested in manually shifting, and the Neowing might appeal to riders looking to tour without fear of dropping a half-ton motorcycle. Honda will have the Neowing in Tokyo, and perhaps the company will shed more light on their plans for the wild-looking concept there.

Honda exec says US market near capacity, could hurt subprime buyers

Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
According to Automotive News, Mendel believes that finding more customers in the market could require pursuing subprime buyers and offering longer-term loans. However, he refuses to use those tactics. While selling models this way can improve things briefly, the strategies hurt resale prices and lower vehicle profits over time. The company won't do "stupid things in the short-term that damage the person who bought yesterday," he said to Automotive News. "It's a very, very short-term tactic especially in the subprime area."
American Honda, which combines the Acura and Honda brands, has seen market share decline from 9.7 percent to 9.1 percent through July 2014, according to Automotive News, and Autoblog's By the Numbers stats showed it posted falling sales in five of the seven months with data this year. Though, Mendel claims that was partially because the company focused on retail sales over fleets. The delays of the launches for the Honda Fit and Acura TLX likely didn't help either.