2008 Honda Cr-v Ex-l Sport Utility 4-door 2.4l on 2040-cars

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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.

2015 Honda CR-V

Predicting the future direction of Honda's compact CR-V would have been difficult based on the Civic-derived model that first arrived on our shores for the 1997 model year. The newcomer, selling alongside the body-on-frame Passport (a hastily rebadged Isuzu Rodeo), was a cute compact crossover with four doors and an awkward curb-side hinged tailgate thanks to its Japanese home-market design. The five-passenger CUV offered generous interior room, but its wheezy 2.0-liter four-cylinder, with an output of just 126 horsepower and 133 pound-feet of torque, required 11.7 seconds to bring the 3,153-pound vehicle to 60 miles per hour. Rear drum brakes didn't help much in the stopping department, but Honda offered safety-minded consumers optional anti-lock brakes on the premium trim.
Nearly two decades after its introduction, the CR-V has matured in spectacular manner. The refreshed 2015 Honda CR-V, now in its fourth generation, is dimensionally within two inches of its ancestor in overall length and nearly identical in height and wheelbase. That consistency of dimension is impressive in this age of size and segment creep, and it stands as a testament to how 'right' Honda engineers got the model's original packaging. Of course, the CR-V hasn't stood still - nearly everything else about the best-selling compact CUV has improved in leaps and bounds.
But Honda is not the only player in this hotly contested segment today, so the automaker has taken the unusual step of updating its fourth-generation model just a few years after its introduction in an effort to keep it seated on the podium. To learn more about the automaker's improvements, and form our own impressions, we spent a day driving the CR-V in sunny Southern California.

Honda boss says Chinese drivers don't want green cars

According to The Wall Street Journal, Honda CEO Takanobu Ito believes that China's nascent car-buying demographic isn't all that interested in hybrid cars - at least not yet. The emissions story doesn't resonate with them, and certainly not for the higher purchase premium such models usually carry. What they really want, Ito believes, is reliable, affordable cars that fit their needs. When it comes to Honda sales, the numbers would appear to jibe with his thoughts: Honda sold 598,577 vehicles in China last year through its two joint ventures, yet just 542 of them were hybrids - not even a tenth of a percent. However, Toyota sold 840,500 cars in China last year, and two percent of that total, 17,300 units, were hybrids, which is closer to the still-piddling three-percent ratio of sales that Toyota posted in the US last year.
Honda offers the Insight, Fit Hybrid and CR-Z in China and plans to make components for its Integrated Motor Assist hybrid system there from next year, the hope being it will reduce the cost of hybrid cars for local buyers. That was one part of the plan Honda laid out last year to popularize its IMA system in China. Other initiatives include the introduction of a new hybrid system for mid-sized and large vehicles and a plug-in hybrid. Among the four new vehicles Honda showed during this weekend's press day for the Shanghai Motor Show (including the Concept M minivan pictured above) there was not a single hybrid among them.