Motortrend: We Hear: Honda Profits Down at End of 2011, Better Sales in 2012?

Things are either looking down or up for Honda, depending on how you look at it: the company’s operating profit may have been down 65 percent in the last quarter of last year, but it is promising a sales bump in the coming fiscal year, starting April 1.

Honda’s operating profit was just 44.3 billion yen ($581 million) in the last three months, drastically below where industry analysts said it would be. It now projects that it will end the year with an operating profit of 200 billion yen ($2.62 billion). It’s about 35 percent lower than Honda’s own estimate that it released sometime in August.

There are a number of factors behind these numbers, but chief among them is the one-two punch of the Japanese earthquake and Thai floods that rocked east and southern Asia. Honda was, without doubt, the hardest hit of the three Japanese automakers — the company estimates it lost the production equivalent of 260,000 cars in the quake and flood. Meanwhile, both Toyota and Nissan returned to full production much earlier than Honda, and have regained market strongholds in the months since both natural disasters happened.

Honda executives haven’t backed down, however, and said that they were bullish about this calendar year. The company predicts a 25-percent increase in sales in North America alone over the calendar year 2011. The goal sounds ambitious–and it is–but a 25 percent increase in American Honda and Acura sales would put the company at about 1.43 million units this year, or bring it back to 2007-2008 levels. It must also grapple with big currency fluctuations — at the end of 2007, the best of Honda’s last five years, one dollar bought 112.64 yen; at the end of 2011, its worst of the five years, that dollar only bought 77.63.

One bright spot? Honda promises that it’ll complete the all-important refresh of the current Civic this year, either to be debuted late this year or early next. We’ll have to see if it spells more sales for the embattled company soon.

Source;
http://wot.motortrend.com/we-hear-honda-profits-down-at-end-of-2011-better-sales-in-2012-163843.html

Woman takes Honda to small-claims, wins big in fuel economy case

Ouch.
By Linda Deutsch Associated Press

Los Angeles— A Southern California woman took Honda to small-claims court and won in a big way.
Los Angeles Superior Court Commissioner Douglas Carnahan ruled Wednesday that the automaker misled Heather Peters about the potential fuel economy of her hybrid car and awarded her $9,867 — much more than the couple hundred dollars cash that a proposed class-action settlement is offering.
"At a bare minimum Honda was aware ... that by the time Peters bought her car there were problems with its living up to its advertised mileage," Carnahan wrote in the judgment.
Honda disagrees with the judgment rendered in the case and plans to appeal the decision, company spokesman Chris Martin said in a statement.
Peters, a former lawyer, said she is renewing her legal license after a 10-year lapse so she can represent other Honda owners who have the same problems she did.
"Wow! Fantastic. I am absolutely thrilled," she said when the Associated Press informed her of the judge's decision. "Sometimes big justice comes in small packages. This is a victory for Honda Civic owners everywhere."
Carnahan included in his 26-page decision a long list of misleading representations by Honda that he said Peters had correctly identified. Among them were that the car would use "amazingly little fuel," "provides plenty of horsepower while still sipping fuel," and that it would "save plenty of money on fuel with up to 50 mpg during city driving."
"Actual performance of plaintiff's vehicle did not live up to these standards," he said. He noted that when she began receiving much less than the advertised mileage, "she knew she had a problem."
Peters opted out of the class-action lawsuit so she could try to claim a larger damage award for her 2006 Honda Civic's failure to deliver the 50 mpg that was promised.
The proposed class-action settlement would give aggrieved owners $100 to $200 each and a $1,000 credit toward the purchase of a new car. Legal fees in the class action would give trial lawyers $8.5 million, Peters said.
In small claims court, there are no attorneys' fees and cases are decided quickly.
Peters had hoped to inspire a flood of small-claims lawsuits by the other 200,000 people whose Honda Civic hybrids are covered by the proposed settlement. If all 200,000 owners sued and won in small claims court, she said, it could cost Honda Motor Co. $2 billion.
Peters launched a website, DontSettleWithHonda.org, and said she was contacted by hundreds of other car owners seeking guidance on filing small claims lawsuits if they opted out of the class-action case. But legal experts say it's unlikely that many owners would take the small-claims route because of the time and energy involved in pursuing such lawsuits.
Carnahan found that Honda did commit fraud, but he could not find intentional fraud and thus did not award punitive damages. Most of the damages Peters was awarded were for extra money spent on fuel, both in the past and future, the cost of the car battery, and the decrease in the car's value because of its problems.
A judge in San Diego County is due to rule in March on whether to approve Honda's class-action settlement. Members of the class have until Feb. 11 to accept or decline the deal.

Source;

http://www.detroitnews.com/article/20120202/AUTO01/202020429/Woman-takes-Honda-small-claims-wins-big-fuel-economy-case?odyssey=modnewswelltextFRONTPAGEp

Honda to Race New European Civic Hatch with 1.6-liter Turbo in the WTCC

Honda is getting ready to put on its racing suit for the FIA World Touring Car Championship (WTCC), in which it will participate with the new European Civic hatchback.

“We have made a decision to enter into the WTCC with the European Civic," said Honda CEO, Takanobu Ito, on the announcement. "We will develop a totally new engine for this project and we are all excited about starting this new challenge."

The Japanese automaker revealed that its Research and Development division will design a bespoke 1.6-liter turbocharged four-cylinder racing engine with direct-injection in accordance with FIA’s Super 2000 regulations.

Honda's motorsports partners for this project are Mugen, which will manufacture and maintain the engine, and J.A.S. Motorsport, that will develop the racecar.

The company said that it aspires to join the WTCC as early as this season, with a string of “inaugural rounds” to trial the car and which will likely include Japan (held on 21 October 2012 at Honda’s Suzuka circuit), followed by China and Macau.

Honda then plans to enter a two-car team managed by J.A.S. Motorsport into every race in the 2013 championship season.

The Japanese company noted that its activity in the WTCC is being run independently to the Honda Racing British Touring Car Championship.

Source;
http://carscoop.blogspot.com/2012/02/honda-to-race-in-wtcc-with-its-new.html

Volkswagen Releases Sequel to Last Year's 'Star Wars' Super Bowl Commercial (Video) The Dog Strikes Back!

Autoten: 2013 Toyota Corolla (JDM-Code name 140A) rendering and spyshots

As we know the Corolla is consist of Auris(Hatchback for Europe),Corolla Altis(Wider verions for North American and Asia) and Corolla Axio/Fielder that limit only in Japan.This post, Autointrends have information for JDM specification that including the sedan version-Axio, and wagon version call Fielder.both car is count as the 10th generation’s Corolla start sale since October 2006 in Japan and received latest update in April 2010.

The car is soon to get replacement and Mag-x of Japan have release rendering and spyshot of the car,The Axio call codename 140A and the Fielder called 141A internally.From the rendering we have seen, the headlight look resemble of new Toyota Camry’s headlight (Asia version),Shoulder line have been keep at minimal which not wider than 1700 mm to receive cheaper yearly tax in Japan ( Called 5No.),Tail light is very close to the Chevy Sonic.

The same source also have the computer generate image of the interior console which look simple but have Inherent benefits.Featuring automatic climate control with LCD display,Wood finished,Navigation system and multifunction steering wheel.Body’s size is expect to keep around current model at about 4395 mm long X1695 mm wide and 1460 mm height.Considering the car is smaller than the international version (Altis).

The car will powered by 4 cylinder 1.3 liter,1.5 liter and 1.8 liter petrol engine.The smallest 1.3 liter is expect to be top seller as it got 20k.m./liter fuel consumption in JC08 mode.

The car will be deliver at May 2012 in Japan,As well as the Wagon version.
Admin (Image form Mag-x )

Source;

http://autoten.com/2012/02/02/2013-toyota-corolla-jdm-code-name-140a-rendering-and-spyshots/

Honda goes the diesel route

This car and the diesel are not slated for North America....
by Kushan Mitra
There was an interesting news item in The Economic Times this morning which talked about Japanese carmaker Honda being in the advanced stages of developing a diesel motor. The carmaker recently forecast a massive drop in profits expected for the fiscal year ending March 2012 thanks to a rising yen and massive production issues caused by the earthquake and tsunami in Japan and the recent floods in Thailand. These caused Honda several headaches in India over the past year, production for their new small car the Brio had to halt a few weeks after the vehicle's launch because of a lack of parts coming from Thailand.

But Honda's fortunes in India in 2011 have not only been impacted of a lack of parts from Thailand. Honda's premium products had a significant price premium on their rivals for many years. But existing rivals, particularly Hyundai, have dramatically improved both drivability and looks in the new Verna. The entry of new rivals such as Volkswagen, particularly the new Vento, have hammered the best-selling City sedan.

How bad are things for Honda? During April to December 2011, Honda Siel cars India (HSCI) sales fell to 27,939 units from 43,838 units in the same period last year. Even if natural disasters elsewhere can explain a part of the 36 per cent decline, it cannot explain all of it. Look at the City, which for years on end was the best performing car in its class, it has been outsold 3:2 by the Hyundai Verna, despite the Korean car going through a generation change earlier in 2011. The Volkswagen Vento has also just about outsold the City, and maybe if Honda did not face supply-side issues, it would not have been pushed down to P3 in its segment.

And a lot of the sales of the City and the compact Jazz have come through generous price-cuts. The City which saw prices for the entry-level model cut twice this year, first by Rs 66,000 and then by another Rs 50,000 when a mid-generation facelift was recently launched. This has played havoc with the City's residual value, previously one of the best in the industry. The competition has not just eaten into Honda sales they have also made the Japanese carmaker pretty much admit that their cars were overpriced.

But sales are still not picking up and the problem lies not in prices but in the Indian car consumers' shift towards diesel powered cars. There has always been a price differential between petrol and diesel in India, but in 2011 when the price difference reached Rs 20 per litre and as diesel technology mproved considerably, consumers started to see reason in spending Rs 100,000 extra on a diesel variant of a car over the petrol model (at the same specification level). Driving just a 1000 kilometers a month, the average consumer would make his or her money back in 24-30 months depending on the car. With a large majority of the Verna and Vento's sales being to the diesel variant (Volkswagen is offering discounts on petrol-powered models).

So a diesel engine would make a massive difference for Honda. Despite the price-cuts the brand still holds immense value, and a iDTEC engine as speculated would offer excellent performance. Honda officials admitted to me that Honda is looking at a smaller diesel engine than the 1.6 litre engine which is soon going to be launched in Europe and a 1.2 litre engine will comfortably fit inside the engine bay of the Brio and the Jazz, with the larger 1.6 litre making it onto the City, Civic and C-RV.

But it appears Honda is aware of this, they realise that introducing a diesel in India will lead to huge demand, even if the government gives in to the environmental lobby in India and imposes a Rs 80,000 'surcharge' on diesel cars, which at best would add another year to the break-even point. Maruti and Hyundai already cannot cope with demand, there is a six-eight month waiting period for the Diesel Swift and a Diesel-powered Verna involves a four to five month wait. So will Honda invest in a forging and casting plant in India to make Diesel engines? That remains to be seen.

But even if the engines are imported, Honda officials told me that no diesel powered cars will be sold in India in 2012. But with 11 months of the year remaining and the fact that things change quickly in the automotive industry, take nothing for certain.

Source;

http://businesstoday.intoday.in/story/honda-diesel-cars/1/22058.html

Honda to spend $98 million to build CVT parts at Ohio plant

During trial production, two of Honda's advanced continuously variable transmissions undergo leak testing on the new assembly line at Honda's plant in in Russells Point, Ohio.

DETROIT -- Honda today said it will invest $98 million at its Anna, Ohio, engine plant to build pulley components for the company's continuously variable transmissions.

The CVTs are part of Honda's next-generation powertrain technologies aimed at boosting performance and fuel efficiency.

Production of the pulley components in Anna is to begin in 2013.

"The production of this new CVT technology puts the Buckeye State right in the middle of Honda's global strategy," Hide Iwata, CEO of Honda of America Manufacturing, said in a statement.

The investment in the Anna plant is aligned with a $120 million investment announced last year for Honda's plant in Russells Point, Ohio, where the company will begin producing the CVT this summer.

The modernization and expansion of the Russells Point transmission plant and the new pulley component production at Anna will create a combined 150 new jobs, Honda said.

Since November 2010, Honda has announced more than $500 million in investments for advanced technologies and systems at its four Ohio plants. In January, Honda's Acura luxury brand said the all-new Acura NSX -- which debuted last month at the Detroit auto show -- will be developed in Ohio and built at a new manufacturing operation in central Ohio.

PRESS RELEASE: Honda to Invest $98 Million in Anna Engine Plant for Production of Advanced Transmission Components
Honda will build new continuously variable transmission (CVT) in Ohio;
Total recent Honda investment in Ohio operations exceeds $500 million

ANNA, Ohio, Feb. 1, 2012 – Honda announced today that it will invest $98 million at its Anna Engine Plant as part of a strategy to build the company's next-generation powertrain technologies in Ohio. The move is aligned with a $120 million investment, announced last year, for the production of a new continuously variable transmission (CVT) in nearby Russells Point, Ohio.

The Anna Engine Plant will manufacture high-tech pulley components for Honda's new CVT technology, which is part of the new Honda 'Earth Dreams' powertrain technology lineup, to be deployed for the first time in the U.S. in the all-new, more powerful and fuel-efficient 2013 Honda Accord.

Honda will produce its technically advanced CVT on a new assembly line at Honda Transmission Mfg. of America, Inc. in Russells Point. The modernization and expansion of the Russells Point transmission plant, along with the new pulley component production at the Anna plant, will create 150 new jobs.

Since November 2010, Honda has announced new investments exceeding $500 million in its two auto plants and two powertrain plants in Ohio.

"For decades, our two Ohio powertrain plants have worked together to deliver advanced products for our customers," said Hide Iwata, president and CEO, Honda of America Mfg., Inc. "The production of this new CVT technology puts the Buckeye State right in the middle of Honda's global strategy."

The new transmissions will debut in the all-new 2013 Honda Accord models that will come to market later this year. The Accord for the U.S. market is built only in Ohio at the Marysville Auto Plant.

"Applying Honda's new Earth Dreams Technologies in the production of engines and transmissions will greatly enhance the driving performance of Honda vehicles, and help us achieve fuel economy leadership in every segment over the next three years," said Iwata.

While the Anna plant prepares for its production launch, the Russells Point transmission plant will proceed with CVT production this summer. These transmissions require highly sophisticated pulley components. Initially, these components will be supplied from Honda operations in Japan, before CVT production for U.S. models is taken up by the Anna plant in 2013.

"Our associates have incredible experience and we are counting on them to help us introduce an even higher level of powertrain technology for our customers," Anna Engine Plant Manager, John Spoltman, said. "The new CVT technology will be mated with Honda's new Earth Dreams 2.4-liter direct-injection engine, which will also be produced here at the Anna Engine Plant."

Earth Dreams technology defines Honda's next-generation engine and transmission strategy to realize advanced levels of both performance and fuel efficiency. Introduction of the new CVT for mid-size cars, will improve fuel economy by approximately 10 percent compared with the current five-speed automatic transmission.

The new component production operation at Anna will utilize 84,000 square feet of plant space for lathing, heat-treating, grinding and subassembly of precision CVT pulley systems. With the capacity to manufacture 1.18 million V-6 and four-cylinder engines annually, the Anna Engine Plant is the largest automobile engine factory in Honda's global production network
At the Russells Point transmission plant, CVTs will be manufactured on a sophisticated assembly line that is being constructed as part of a $70 million, 200,000-square-foot expansion of the facility. An additional $50 million is being invested in a 75,000-square-foot expansion of the facility for additional aluminum casting operations to support the CVT assembly line.

Honda Transmission Mfg. of America currently employs 1,050 associates. In addition to automatic transmissions, the Russells Point plant also manufactures four-wheel-drive systems. Both plants manufacture the precision steel parts for engines and transmissions, and four-wheel-drive components.

Today's announcement continues a series of major initiatives by Honda in its Ohio operations. In January, the Acura luxury brand revealed that the all-new Acura NSX supercar will be developed in Ohio and built at a new manufacturing operation in central Ohio. And since November 2010, Honda has now announced more than $500 million in investments for advanced technologies and systems at it four existing Ohio plants.

Other major initiatives now under way include construction of on-site parts consolidation centers at Anna and East Liberty, a sophisticated new stamping press at the Marysville Auto Plant, and several major projects at East Liberty to expand assembly lines, implement new paint technologies and consolidate vehicle quality operations.

Source;

http://www.autonews.com/apps/pbcs.dll/article?AID=/20120201/OEM01/120209993/1424

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