Hey, ... Look! ... Honda's not making cars that Americans are willing to buy.

[Bozita]

Source: Dayton Business Journal

Friday, December 12, 2008 - 11:07 AM EST
Honda cutting production again


Related News
Honda cutting production again
Honda sales plunge 32 percent in November
Honda Motor Co. Ltd. is reducing production again in response to dwindling sales.



The automaker will cut another 119,000 units from its plan across all North American facilities in the remaining months of its fiscal year, ending March 31, including a 58,000-vehicle cut at its Marysville and East Liberty auto assembly plants. Honda will also make cuts at its newly opened Civic plant in Greensburg, Ind.

The company previously announced a 38,000-unit cut in October and an 18,000-unit reduction in November.

Honda’s sales for the first 11 months of the calendar year were down 6 percent to 1.34 million vehicles, from 1.42 million through the same period of 2007, including monthly declines of 24 percent in September, 25 percent in October and 32 percent in November.

The 175,000 total cut in planned production is a 12 percent drop from Honda’s original plan for the year of 1.46 million vehicles.

Read more: http://www.bizjournals.com/dayton/stories/2008/12/08/da...


Doesn't sound to me like Honda is making cars that Americans are willing to buy.

Perhaps it's a quality thing. Or maybe they pay their workers too much.

[notadmblnd]

1. Careful, your going to ruin some anti union pro foreign labor advocate's day

And we wouldn't want that, would we?

[Bozita]

2. But Honda workers get healthcare. They include those costs in the pricing of the cars.

And, I don't have healthcare. Why should I pay for some grungy auto worker's healthcare?

:sarcasm:

[Jack Bone]

3. I think they just have a piss poor business model! nt

[hobbit709]

4. Unwilling or unable?

I can't afford a new car of ANY make. I can barely afford to keep the one I got running.

[ogneopasno]

5. But but but! EVERYONE wants to buy Japanese cars! BUT!

[IDemo]

6. As someone posted yesterday, it's not about the brand or quality

No one is buying vehicles now, foreign or domestic, big or small. Makes no difference who made them or where.

[Andy823]

8. You are 100% right!

The vast majority of americans are not buying cars, and won't be in the coming year, maybe into 2010! Those that are buying are buying used, not new. I am sure that there will be some great deals coming up next year, but few will have the money, or the high credit scores to buy them. When people are losing their jobs, they are not going to be buying cars, but selling the extra ones they may already own.

[stray cat]

7. Have they asked for a bail out to keep them going?

[Bozita]

9. Sweden just bailed out Saab and Volvo. I don't know about Japan and Honda.

http://news.bbc.co.uk/2/hi/business/7777395.stm

BTW, the Detroit 3 are asking for a loan.

Google AIG and discover what a real bailout looks like.

[riqster]

10. Japan is VERY supportive of its manufacturing sector already nt

[notadmblnd]

16. in fact they haves asked their auto companies not to lay off people recently.

[LSK]

11. no, most of their worldwide workers have universal healthcare

[Kalyke]

14. They don't need one.

Their government already subsidizes them.

This policy has flood Japanese cars into the U.S. that harm the economy and cost American jobs by giving Japanese automakers an unfair and unearned advantage over American automakers.

The artificially low yen has helped fuel our trade deficit with Japan, which hurts the U.S. economy and gives Japanese automakers an unfair advantage over American automakers. Nearly two-thirds of that deficit, or $56 billion out of a total $88 billion, is exclusively a result of Japanese auto products.

With a yen valued at 118 to the dollar, Japanese automakers enjoy an average windfall $4,000 cost advantage per vehicle more than they would if the yen traded at its true value. The overall subsidy Japanese automakers gain for the 2.2 million vehicles they import totaled $8.8 billion in 2006.

The total yen subsidy provided to Japanese automakers in 2006 was $13.4 billion – $8.8 billion for car & truck exports to the U.S. and $ 4.6 billion for imported parts used in American-made Japanese cars.

More than half (52%) of all automobiles manufactured in Japan were designated for export in 2006, exceeding 50% for the first time in 19 years. In fact, even as demand within Japan for new autos is declining, Japanese companies are adding production capacity to Japan-based facilities, reactivating assembly lines, adding workers and postponing planned factory closures as they move to export ever greater numbers of vehicles.

[SidDithers]

12. Nobody's making cars Americans are willing to buy right now...nt

Sid

[FKA MNChimpH8R]

17. Give that gentleman a cigar

for he has answered the question correctly!

[LSK]

13. psst: Theres this recession thing going on

:hi:

[Kalyke]

15. I like this thread.

:thumbsup: