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Honda reworking Civic in plan to boost sales

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Honda Motor Co. is sprucing up its Indiana-made Civic sedan, which received poor ratings, after less than a year on the market as part of a plan to boost U.S. sales by 24 percent in 2012 for its namesake brand.

Honda will unveil “upgrades” on its 2013-model Civic, going on sale late next year, Tetsuo Iwamura, the automaker’s top North American executive, said in an interview yesterday. The current Civic failed to receive the “recommended” status its predecessors had from Consumer Reports magazine, which criticized it for a decline in interior quality, choppier ride, and more road noise.

“Building a good car isn’t enough for us, we have to build a great car,” John Mendel, Honda’s executive vice president of sales in the U.S., said in the same interview. “We think we can do better and the customer expects that and we will.”

U.S. sales of the Civic have fallen 13 percent this year to 200,690, according to researcher Autodata Corp. Honda’s U.S. sales declined 5.3 percent through November while industrywide deliveries gained 10 percent as the company suffered inventory shortages caused by floods in Thailand in October and a March earthquake and tsunami in Japan.

The company has about 117,000 models in inventory, or a 41-day supply, less than half what it should have, Iwamura said.

“Hopefully, by the end of March next year” Honda will have full inventory, Iwamura said. “If John could sell more, then it will be the end of April or May.”

Japan’s third-largest automaker counts on the U.S. for the largest portion of its global sales. Tight inventory and competition from rivals including Hyundai Motor Co. and Kia Motors Corp. cut Tokyo-based Honda’s U.S. market share to 9 percent through November from 10.5 percent a year earlier. Combined share for South Korean affiliates Hyundai and Kia rose to 9 percent from 7.8 percent during the same period.

The automaker has set a target to increase U.S. sales of its namesake brand to 1.25 million models next year, from about 1 million this year, Iwamura said. It plans to boost sales of its Acura luxury line by 43 percent to 180,000 from about 126,000 this year, he said. The new compact ILX, also to be built at Honda's Greensburg plant, goes on sale in early 2012.

“It looks like quite a high jump, but because of the availability problem we had a really low year this year,” Iwamura said. “That is the reason why growth looks huge, but for us, it’s a natural growth.” Honda brand’s U.S. sales totaled 931,885 through November while the Acura brand sold 110,170 vehicles, according to New Jersey-based Autodata.

Sales growth will be driven by replenished inventory and a 2013 lineup with more than 70 percent new models, Iwamura said. Upgrading the Civic, Honda’s second best-selling car in the U.S., and other models is an important part of that growth strategy, he said.

“Civic is a good product; of course the expectation of the marketplace for Honda product is quite high,” Iwamura said. “We have to once again make it great.” Competitors’ small cars are improving, which is challenging Civic, Iwamura said.

“The gap between Civic and the competitors has been narrowed,” Iwamura said. “We have to once again make the gap wider.” Honda will upgrade the styling, driving characteristics and comfort of the Civic and other models for the 2013 model year, Iwamura said.

The 2012 Civic “ranks near the bottom of its category,” David Champion, senior director of Consumer Reports’ auto-test center, said in August. Other reviews marked down the Civic for having a 5-speed automatic transmission, while competitors offer fuel-saving six-speed gearboxes.

“We disagree with” the magazine, Mendel said. “Did they make some points? Yes they did.” While competition is growing with new small cars such as Ford Motor Co.’s Fiesta, General Motor Co.’s Chevrolet Cruze and Korean models, Honda’s sales decline this year is due to inventory constraints, not product shortcomings, he said.

“We haven’t gotten worse, everybody else has gotten better,” Mendel said. “Where we used to be four or five laps ahead in the race, there’s more people on the same lap with us.”

Honda withdrew its profit forecast after net income fell 56 percent in the three months ended Sept. 30, to 60.4 billion yen ($761 million), from 135.9 billion yen a year earlier. Honda said Nov. 30 that it would give a full-year profit forecast at the end of January, after releasing fiscal third-quarter results.

 

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  1. liek the rest of America

  2. These quaint,obsessed musings by the stalkers are certainly entertaining, but I'm trying to figure out what, if anything, all the yelping below has to do with Zak Brown.

  3. It's evident that Moffett was pushing the right buttons and corporate America is now trying to squash him. He just wanted to withdraw the free pilot services provided to the company by the pilots to try and put some pressure on a company that has not been interested in negotiating a contract in over 5 years. The company does not provide a contract because not having one has saved them a bundle of money. Shame on any Republic pilots not standing behind their union leader just because things are getting tough, can you not see such strategic moves by the company as putting the last union president in a corporate position and into THEIR pocket. Do you really believe the last union president is so appalled at the attempts by Moffett, do you not remember his oppositions to the company? We stood behind him. It has been proven over and over again for thousands of years without fail, a man cannot serve two masters. Anyone that believes people vote contrary to their paycheck and livelihood deserve to be taken advantage of, the recent statements by the former union president are laughable as he denounces the current union president from his new corporate position. Have you ever seen a drafted sports player score points for his previous team, it cannot be done, he is not on the pilots side anymore, he gets his money a different way now than you and I do, and he should not be allowed to remain on the seniority list. A drafted player brings strength, credibility, tactical knowledge, and a strategic advantage to his NEW team, he would not be drafted or paid were it otherwise. We are all forced to choose only one side to play for and support, not doing so has many references in life such as insider trading and shaving points, all illegal for good reason. This basic fact is why corporate moguls, scientist, and engineers all sign non-discloser agreements and non-compete clauses, as protection in case they are lured into switching sides as our former union president has done. No NFL coach ever drafted a player so that both teams could benefit and better understand each other, they are recruited to win the game against that former team, period. Likewise the company does not recruit the former union president by accident or mutual understanding, its strategy. Don't confuse playing the game with good sportsman-like conduct in support of common business and prosperity goals, with the requirement to only play for one side. Good men we all love and favor fall subject to this manipulation, often without their knowledge, and it is not a betrayal of their friendship to oppose them when they switch sides. If we did not love and trust them, they would not have been chosen and lured to the other side in the first place. The deception by the drafted player is not made at a conscious level, it's just human nature and it's all about money and power which corrupts our ability to be objective and loyal to two masters. This is why our court system created the defense attorney, and why our military created counter intelligence. Its strategy and its propaganda, and it works, and that's why the "powers to be" manipulate the chess pieces by sometimes changing their colors. Some players know they are being manipulated when their color is changed, but it brings them more money and power so they do not care. The rest have good intentions but do not even realize they are being manipulated. This tactic is also known by another name, Divide and Conquer. In battle sending an imperfect message with an imperfect team is obviously not ideal, but it's still being sent by YOUR team, your union leader, a leader that has common goals and common rewards with you, they are the best, because we have elected them to do a job for us. If you are not backing Moffett but believing the spin by those that have recently switched sides, you are taking food out of your own mouth. Showing unity and backing an imperfect situation still results in taking just as much ground, it's about unity and bargaining power. It's not necessary to wait around for that perfect attack because it will never come, the company will spin and attempt to destroy anyone that gets in their way. Ultimately it's not about any specific attack anyway, ASAP or whatever it makes no difference, it is and always has been only about power. If this company cared about safety it would not build pairings with 8 hour overnights, come on, are you that naive? Besides, do you really think Hoffa cares, no, he got a call from corporate America and was squeezed into denouncing Moffett. If he didn't they would spin the safety card against him and the Teamsters National with implication for truckers, future contracts, insurance rates etc...saying something like the Teamsters use safety as a bargaining chip, blah blah blah... Do you really think any pilot is going to do something unsafe for the contract, absolutely not, the only ones threatening safety here is the company with reduced rest, fatigue, and poverty. Do you not find it odd that Hoffa and the Teamsters are opposing a Teamster president publicly? Would the Teamsters National not normally support and work with one of their own? Why did they not sit down and help him strategize, correct any mistakes, and charge ahead? Would the Teamsters National not normally support and leverage a contract for all those pilots that have been paying Teamster dues, isn't that why we have all been paying Teamster dues in the first place? I sure haven't been paying dues so that the Teamsters National could come along and write this kind of an article undercutting our union leader and our unity. Whose side is the Teamsters National really on, it's obviously not the Republic pilots side.

  4. No matter what Moffatt does the company is going to spin it like he is the terrorist and brainwash people like you into believing it, wake up, back your players that are trying to change things for you and your livelihood. Where has Hoffa been for the last 6 years, except collecting our dues. Seriously, do you really think an FO going for upgrade, signed off by a checkairman ready for the upgrade, who then fails, is not even capable of returning as a First Officer.

  5. whoa!

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