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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

Next Honda Civic to get 1.5L turbo

The low-displacement, turbocharged engine is all the rage these days throughout the auto industry, whether considering the 1.0-liter, three-cylinder EcoBoost from Ford or even Ferrari opting for a downsized turbo V8 in the latest 488 GTB. It looks like Honda might be the next one to follow this trend, and it could happen as soon as the next-gen Civic. "Downsized turbocharging will be the base, even for the Civic," Honda Research and Development boss Yoshiharu Yamamoto said to Automotive News. That included the US, he indicated. "Quite a bit will switch over to turbo, but there will still be some naturally aspirated ones remaining." The engine reportedly is a turbocharged 1.5-liter four-cylinder that offers better fuel economy, lower emissions and the power of a naturally aspirated mill of between 2.0- and 2.4-liters, according to AN. Since the current Civic gets 143 horsepower from its 1.8-liter four that suggests a healthy power bump for the future model. Making the news even more tantalizing, the new Civic with the 1.5-liter turbo could be revealed before the end of the year, according to Automotive News. Honda already confirmed a $340 million investment into its Anna, Ohio, plant to build the engines later this year. Honda first mentioned a 1.5-liter turbocharged four-cylinder in 2013 along with the 2.0-liter turbo now in the Civic Type R in Europe. At the time, the brand said these engines would appear in "a number of future global models." The HR-V in the US was also previously rumored to use the same powerplant.

Total auto recalls already on record pace in 2014

If you've noticed that there have been more recalls than usual this year, you may be on to something. According to a report from the National Highway Traffic Safety Administration, the US market is on pace to break a record for recalls. In 2013, 22 million cars were recalled. We're only a third of the way through 2014, though, and we've already halved that figure, with 11 million units recalled. That's wild.
Considering the past few months, it shouldn't be a surprise that General Motors is leading the charge, with six million of the 11 million units recalled coming from one of the General's four brands. Between truck recalls, CUV recalls and the ignition switch recall, 2014 hasn't been a great year for GM.
Other recall leaders include Nissan (one million Sentra and Altima sedans), Honda (900,000 Odyssey minivans), Toyota (over one million units in a few recalls), Volkswagen (150,000 Passat sedans), Chrysler (644,000 Dodge Durango and Jeep Grand Cherokee SUVs) and most recently, Ford (434,000 units, the bulk of which were early Ford Escape CUVs). So while it's been a bad year for GM so far, its competitors aren't doing too well, either.