RECALL NUMBERS

Honda Canada is recalling 135 142 models, Honda China is recalling 760 000 vehicles while a few hundred thousand other models are being recalled through Honda Siel Cars of India and several countries in Central/Southern Asia where Honda operates, however the majority of the recall, 1.5 million Honda models were purchased in the United States. For a full look at which cars are involved and what the recall is about, check the blogpost below. More to come ...

Honda Suspends Swindon Union Leader

The top union leader at the local Honda Swindon plant has been suspended.

Paddy Brennan represents thousands of workers at the car plant, but was yesterday revealed to have been have been put on paid suspension by the company.

The move came just hours before the factory’s two-week summer shutdown began at the end of Friday, last week.

The reasons for the suspension are unclear, with Honda refusing to comment and his Unite union claiming to be left in the dark. Mr Brennan also refused to comment.

But the move has been condemned as an attack on the trade union itself, which represents around 1,500 of the 3,000 staff at the plant, and Unite has pledged to do “everything in its power” to back him.

Tony Murphy, Unite’s national officer for the car industry, said: “We don’t know what the charges are, but a number of recent incidents on site indicate there’s an attack on trade unions at Honda.

“The company states it has neutrality in its role with trade unions. What is factual is those attacks on the union, Paddy and other stewards are connected to a possible attack on existing terms and conditions of employment.

“If we haven’t got the union on site, it’d be easier to change things.”

He said there has been a ratcheting up of pressure in recent months, with a de-recognition bid for the union appearing to have the tacit support of the company, and a clampdown on holding meetings during company time or even posting bulletins on noticeboards.

In London, the RMT trade union recently threatened four days of strike action on the underground after two of its union representatives were sacked. It was called off when the pair were reinstated.

But Mr Murphy would not go into details of exactly what action his union may take at the Honda plant.

He said: “We’re hopeful it can be resolved amicably. If not, as you say Paddy Brennan is one of our senior people, and we’ll do everything in our power to protect him. There will be ramifications.”

Meanwhile, Mr Brennan’s case has been taken up by the National Shop Stewards’ Network, a campaign group for trade union representatives, which called the move “a provocative attack on a prominent trade union fighter and by extension an attack on the right to organise at Honda”.

Spokeswoman Linda Taaffe said: “We believe it’s over some minor misdemeanour. But the real reason of course is to try and render ineffective the trade union activities at the factory.”

A spokesman for Honda simply said: “Honda doesn’t comment on individual associates’ cases.”

Canadian Acura/Honda Sales in July 2011

Sales of Honda's 2011 Accord are falling sharply in Canada to competitors

Combined July sales of 8,818 units by the Honda and Acura divisions represented a 24 per cent decrease over last year's sales.  The Honda Automobile Division reported July sales of 7,654 units, down 25 per cent from last year. The Acura Division reported July sales of 1,164 units, down 19 per cent over last year. "Our July sales results reflect the full impact of the disaster that struck Japan in March, but now that the worst is behind us, we fully expect that the situation will improve significantly over the coming months," said Jerry Chenkin, executive vice president of Honda Canada Inc.  "Once again, we apologize to our valued customers as we work hard to recover from this very difficult period."

Bi-Winning

Over the past two weeks, Honda Canada used the Toronto Honda Indy and Edmonton Indy to petition race fans to donate to Make-A-Wish Canada; they announced July 25 that they managed to raise over $90,000 for the charity.

Honda also donated space Paul Tracy's Honda Indy race car to help raise awareness, and for a donation let fans sign the driver's suit.

For chipping in, fans got to witness a Friday practice run during "Free Friday" at the Toronto Indy, and also got to take part in activities like racing simulators. 

Make-A-Wish Canada will use the funds to grant wishes to children with life-threatening medical conditions.

Class-Action Lawsuit

Honda Canada is facing a $200 million dollar class action lawsuit over a privacy breach that was reporter earlier this year. Affected Honda customers are suing Honda over hacked documents that left their identity, bank account numbers and debit/credit cards vulnerable to theft. They believe Honda failed to adequately protect clients' personal and confidential information and failed to notify customers immediately. Honda announced on May 13th that 283 000 customers had their personal information stolen after unknown third parties gained illegal data access to myHonda/myAcura websites. Financial records reportedly were not taken but the compromised data includes names and vehicle VIN numbers. A representative of the legal rights company at the head of the lawsuit believes that Honda Canada should've learnt its lesson after Honda USA was breached last December in a similar hacking. Honda Canada was not aware of this lawsuit at time of the report. 

Success In China

Honda's CR-V, a mini-SUV sold in China

Honda announced that Guangqi Honda Automobile Co., Ltd. and Dongfeng Honda Automobile Co., Ltd., Honda's automobile production and sales joint ventures in China, ranked No.1 and No.2, respectively, in authorized dealer after-sales service in the J.D. Power Asia Pacific 2011 China Customer Service Index (CSI) Study.

The J.D. Power Customer Service Index Study, started in 2001 and now in its 11th year, measures satisfaction among vehicle owners who visit an authorized dealer during the period of 12 to 24 months after the purchase of the vehicle. Five measures related to maintenance and other services are examined to determine overall satisfaction with dealer service. Overall satisfaction is reported as an index score based on a 1,000-point scale.

Guangqi Honda earned the highest score in three of the five measures: service initiation, service advisor and service facility, and ranked first in overall satisfaction with a score of 896 points, followed by Dongfeng Honda at a score of 891 points.

Honda's automobile production and sales joint ventures have always earned high ranks in past J.D. Power's after-sales customer satisfaction studies, but earning the highest rank demonstrates that Honda's after-sales service has been well-received and earned the trust of its customers in China. Honda's goal is to continue providing after-sales service that satisfies its customers in China.

American Acura/Honda Sales for July 2011

American Honda Motor Co., Inc., posted July sales of 80,502 vehicles, a decrease of 25.6 percent, based on the daily selling rate*, the company announced today. American Honda year-to-date sales reached 687,944, down 2.6 percent versus last year.

Honda Division posted July sales of 71,100, a drop of 25.7 percent versus July 2010. The Accord was the top-selling Honda model for July with sales of 18,308, a decrease of 25.1 percent compared to last year. The all-new Civic, which continues to be produced at reduced levels, posted sales of 14,006, down 37.4 percent. The Pilot SUV posted sales of 9,954, an increase of 8.0 percent versus last year.

"We look forward to improved inventory levels in the coming months as most of our North American facilities begin to return to full production in August," said John Mendel, American Honda executive vice president of sales. "On top of that good news, customers will have two significantly updated Honda products to choose from this month with the refreshed 2012 Pilot and Fit hitting dealer lots soon."

Acura Division recorded July sales of 9,402, a decrease of 25.0 percent versus July 2010, and year-to-date sales of 70,082, down 5.5 percent. The MDX was the top-selling Acura model for the month with sales of 3,438 down 14.9 percent. 

Thailand Drop

Honda exports from Thailand this year are expected to fall for the first time in 14 years thanks to the devastating March 11 earthquake and tsunami in Japan, says Bangkok-based Honda Asian Motor Co.

Exports of Thai-built automobiles, motorcycles and power products dropped 11% year-on-year in the first half to 46.1 billion baht. Exports for the full year are expected to slide by 7% from last year to 90 billion baht.

Since Honda started exporting from Thailand in 1987, the value and volume of products has grown consistently.

Chief executive Hiroshi Kobayashi said the disaster in Japan on March 11 affected Honda's operations in Japan and resulted in a parts shortage for manufacturers in Thailand.

Automobile production in Thailand is gradually recovering and is expected to normalise this September.

Honda's Thai unit was said to suffer the most among local Japanese carmakers as parts dwindled, said an industry source.

However, strong motorcycle exports in the first half helped salvage the period, said Mr Kobayashi.

Total exports of automobile products in the first six months of 2011 reached 20.29 billion baht, 37% lower than the same period last year. Fully built Honda vehicle exports during that period declined 48% to 17,441 units and 8.54 billion baht, a 52% dip.

Honda exports the City, Jazz, Civic, Accord and CR-V models from Thailand to more than 30 countries. In 2011 it expanded to Mexico by supplying 2,430 units of the City in the first six months.

Honda kit exports in the first half declined 16% to 11.75 billion baht. Key markets include Asean, India, Pakistan, Taiwan, China, Turkey and Brazil.

Fully built motorcycle and kit exports grew 44% to 15.31 billion baht in the first half.

Honda exports the PCX, CBR125R, CBR150R and CBR250R motorcycle models from Thailand to 45 countries, with key markets in Europe, Japan, the US, Australia and Asean.

Demand for fully built motorcycles remained strong in the first half with growth of 224% to 63,022 units totalling 4.29 billion baht, up 265%.

Mr Kobayashi said total exports of power products in the first half remained strong with growth of 22% to 1.18 million units totalling 7.05 billion baht, up 23%. Honda exports a wide range of power products to 80 countries with important markets in Asia-Oceania, the US and Europe.

In addition to the three primary export product lines, Honda also exports spare parts, accessories, jigs and moulds, with first half figures up 4% to 3.41 billion baht.

Parent company Honda Motor Co also announced from Tokyo yesterday its second-quarter profit tumbled to 31.7 billion yen (12.2 billion baht) from 272 billion yen a year earlier, a decline of almost 90%. Japan's No.3 automaker said it managed to remain in the black thanks to its growing motorcycle business.

Honda now expects a 230-billion-yen profit for the fiscal year ending in next March 31.

That is less than half of Honda's 534-billion-yen profit in the previous fiscal year, but is better than the 195-billion-yen forecast made in June.

Honda also raised its annual sales projection to 8.7 trillion yen, down 3% from the previous year but better than the 8.3 trillion yen it expected in June.

Honda Pakistan Sales

Pakistan’s Automobile Industry has always played a commendable role in the field of manufacturing, says a press release. Honda Atlas Cars (Pak) Ltd employs a staff of more than 1000 people and has achieved the mark of selling more than 180,000 units in the local market. Honda has not only played a positive role in the economical stability of the country but has also contributed an amount of more than Rs 61.65 billion as taxes to the Government exchequer. The company has paid 225pc cash dividends and 75pc bonus shares till now to its shareholders.

Honda's Japan Fallout Continues to be Felt

Honda's domestic output fell almost 51% on the year to more than 43 000 units in June, down again for the seventh straight month. Exports fell 60% to 12 561 while domestic sales fell 36% to 38 780 units. Overseas output fell 42.1% to 125 084 units while domestic production between January and June fell 45.7% to 266 473 units.

Honda's Hiring Spree

Honda has hired more than 100 of the 1 000 people it is planning to add by October to introduce a second production shift at its Greensburg plant west of Cincinnati. Honda currently employs 1 000 workers that produce Civics at the Indiana plant. Applicants do not need experience but must be 18 and have a high school degree and live in 20 targeted countries. For more information, visit, http://www.indiana.honda.com

Honda Korea

Honda is attempting to regain its number one position in the Korean import market by importing cars made in Europe, helping to take advantage of the free-trade agreement between Korea and the EU. Honda produces the CR-V and Civic in the U.K. and bringing them into Korea will create a price advantage for Korean customers because of the lowered tariff on imported cars. Honda's market share has steadily dropped from a booming share in 2008 and continues to fall in Korea with only a 16.7% market share, down almost 27%. 

In 2008, Honda sold more than 10 000 units and was the top importer, selling almost 12 400 vehicles. "The reason why sales have struggled recently is not due to our own quality or performance but due to external factors such as the high yen and the earthquake in Japan," Chung Woo-young, Honda Korea CEO states. New models will also be introduced in Korea later this year to help bring in customers. The CR-Z, the new redesigned Civic and Civic Hybrid are just some of the models that Honda Korea's CEO is hoping to woo in buyers. 

Chung hopes to double the sales in the second period of this year, aiming to sell about 3 300 vehicles and within a few years, be back to its 2008 levels by utilizing aggressive strategies.

Honda Dongfeng's 1 Millionth Vehicle

Dongfeng Honda's millionth vehicle has rolled off the production line, cnhan.com reported today. The joint venture has finally entered the esteemed circle of Chinese manufacturers making over a million vehicles.

Since its establishment in 2003, Dongfeng Honda has followed a strategy of promoting large-scale investment, hiring top-of-the-line production staff and manufacturing high-quality products. Dongfeng Honda's vehicles sales have brought in a total of 18.59 billion yuan ($2.9b) in taxes, becoming Wuhan province's largest tax earner.

Chen Binbo, deputy executive president of Dongfeng Honda, was pleased with the milestone achievement. He hopes that the JV will continue to bring products to satisfy customer demand, and will be bringing an additional eight models in the upcoming months.

Three of the JV's models, the CR-V crossover SUV, Civic sedan and luxury Spirior have become leaders in their respective segments.

The Honda Promise (available only in the United States)

The Honda Promise
- For both existing and new customers, there is a Featured Special Program. If the chosen vehicle is not available, customers are offered the current lease terms or current APR specials (on eligible vehicles) at the future delivery date (they also may choose the best available offer at the time of delivery).
- There also is a $500 Loyalty Offer for existing Honda customers with a lease or Lease Purchase Program purchase of an eligible new vehicle through Honda Financial Services.
- Existing Honda Financial Services lessees will receive a Lease Extension (not applicable with an existing Lease Purchase Program).
- Existing Honda Financial Services lessees also will receive a complimentary 12-months/12,000-mile, zero-deductible Honda Care Vehicle Service Contract (not applicable with an existing Lease Purchase Program or for lessees in the state of Florida).
The Honda Promise Program runs now through Aug. 1. Customers who commit with a buyer's order in July have until the Commitment End Date of Oct. 31, 2011 to take delivery.

A Milestone for Honda Plants

Honda's Alliston plant is one of the 10 plants with zero waste

10 of Honda's 14 North American plants have achieved zero-waste-to-landfill status. The remaining four are functioning with “virtually zero” waste-to-landfill, according to the company, which said it has achieved one of the most important targets in its longstanding “Green Factory” initiative.

Honda’s plant in Lincoln, Alabama became the first zero-waste-to-landfill auto plant in North America when it began production in 2001. Another plant in Greensburg, Indiana also started production similarly in 2008.

Waste sent to landfills has been reduced at Honda’s North American plants from 28.4 kg per vehicle produced in fiscal-year 2001 to an estimated 0.8 kg in the current fiscal year 2012. Among all of its 14 plants, Honda now sends less than one-half of one per cent of all operating waste to landfills, and either recycles or uses the remainder for energy recovery.

“This is an important achievement and a tremendous reflection on the commitment and continuous effort of Honda associates throughout our company over the past ten years to reduce waste from Honda’s production operations,” said Karen Heyob, manager at Honda of America Manufacturing. “This is an even more significant achievement when you consider that we also produce in North America the engines and transmissions that power our products.”

The only two remaining landfill waste streams in all of Honda’s North American production activities are paper, plastic and food waste from cafeterias and break rooms at automobile and motorcycle plants in Mexico, where there is no more environmentally responsible means of disposal; and a non-recyclable byproduct of the paint pretreatment process for aluminum body panels at two Ohio auto plants. Honda is working with the Environmental Protection Agency to identify an alternative means of disposal.

Honda Australia Success

Honda offers a version of the UK 5-door Civic badged as a Civic Si

Honda Australia announced that June 2011 retail sales far exceeded expectations with the CR-V leading the Compact SUV category, the Odyssey leading the People Movers Under $55 000 category and Honda itself ranking second in the Light Model Under $25 000 and with total sales of 4 162 vehicles in June 2011.

Honda Australia's Senior Director, Mr. Lindsay Smalley says that these boosts mean Honda is on its way to regaining its market share again, "Committed to offering our customers engineering excellence and worry-free motoring with an excellent value for money proposition and a fun driving experience, we are delighted that consumers are embracing Honda in Australia. Our business strategy was to add value for customers by delivering products with better specs and adjustments to price where necessary, which has proven effective."

The CR-V sold 675 units with the Odyssey selling 104 units and the Jazz selling 1 074 units, all fantastic results for Honda Australia.

Honda Siel Cars of India June 2011 Sales

Honda Siel Cars of India is reporting sales for June 2011 at 3 455 units, down almost 25% compared to last year. Honda's lack of production and vehicle availability continue to plague the manufacturer. However, City sales are up 53% compared to May 2011 at 2 802 units. 361 Jazz models were sold along with 175 Civics, 103 Accords and a paltry 14 CR-Vs.

American Acura/Honda Sales for June 2011

Honda posted June sales of 83,892 vehicles, a decrease of 24.3 percent, based on the daily selling rate, the company announced today. American Honda year-to-date sales reached 607,442, an increase of 1.6 percent versus last year, based on the daily selling rate. Although production limitations caused by the March 11 earthquake in Japan continued to improve, reduced vehicle supplies adversely affected June sales results.

Honda Division posted June sales of 75,184, a decrease of 24.5 percent versus June 2010. The Civic was the top-selling Honda model for June with sales of 17,485, a decrease of 36.5 percent compared to last year. The Accord posted sales of 17,107, a decrease of 38.6 percent. Sales of the sub-compact Fit increased 20.0 percent to 4,912, demonstrating continued strong demand for versatile, fuel-efficient vehicles.

Acura Division recorded June sales of 8,708, a decrease of 22.8 percent versus June 2010, and year-to-date sales of 60,680, a decrease of 1.4 percent. The MDX was the top-selling Acura model for the month with sales of 3,374, down 15.7 percent. 

Canadian Acura/Honda Sales in June 2011

Combined June sales of 9,584 units by the Honda and Acura divisions represented a 19% decrease over last year's sales.  The Honda Automobile Division reported June sales of 8,451 units, down 19% from last year. The Acura Division reported June sales of 1,133 units, down 21% over last year. "Once again, our sales results were impacted by lack of supply for some models, for which we apologize to our customers," said Jerry Chenkin, executive vice president of Honda Canada Inc. Honda Canada Inc. has sold more than 3.4 million Honda and Acura passenger cars and light-duty trucks in Canada over the past 38 years.  More than 96% of the Honda and Acura vehicles sold in Canada in June were produced at the company's assembly plants in North America, up from 92% for the same month last year.

Disappointing Forecast

Honda's annual operating profit forecast is not conservative, given the yen's strength and soaring raw materials prices, the automaker's chief financial officer said on Tuesday.

Japan's No.3 automaker this month forecast a worse-than-expected 65 percent fall in annual operating profit to 200 billion yen ($2.5 billion) for the year to March 2012. Many analysts consider its guidance overly conservative, with consensus forecasts putting the profit at 412 billion yen, according to Thomson Reuters I/B/E/S.

"I don't think assuming 80 yen to the dollar is conservative at all," Fumihiko Ike told a small group of reporters in an interview, explaining the expected sharp drop in earnings. 

"The same goes for raw material prices."

Ike said potential shortages of electricity in Japan following the nuclear disaster caused by the March 11 earthquake and tsunami likely meant resources-poor Japan would need to step up its imports of natural gas and other energy sources.

"And for that, a stronger yen is better," Ike said. "We in the manufacturing sector may cry out for relief but...I suspect such forces may be at work."

Honda's assumption that a rise in raw material prices would have a negative impact of 80 billion yen on profits this year was also not overly pessimistic, he said.

"Before, it used to be about rising precious metals prices. Now, on top of that, we're dealing with an incredible surge in rare earth prices as hybrid cars become more popular," he said.

Precious metals such as platinum are used in catalytic converters needed to reduce tailpipe emissions, while rare earth elements such as dysprosium and neodymium are needed for electric motors fitted in fuel-efficient hybrid cars.

Honda said on Tuesday it had received 12,000 orders for the new Fit Shuttle station wagon in Japan, about three times the monthly sales target. Of that, 86 percent chose the hybrid option.

Rare earth prices have been soaring since China, which controls more than 95 percent of global supply, restricted exports late last year. The China offer price of dysprosium now hovers around $3,600-$3,800 a kg, up from $300 a year ago, and neodymium is traded above $450, up from $45.

Honda's cost and sales assumptions translate into a cost increase of around 24,000 yen per car this year. Honda is expecting a 6 percent drop in its global car sales to 3.3 million vehicles.

ACURA DRIVE

Honda's 200 billion yen profit forecast would yield an operating margin of 2.4 percent, less than half of rival Nissan Motor Co's projection of 4.9 percent for 2011/12.

Nissan on Monday mapped out a business plan to boost that margin to a sustainable 8 percent within six years, partly fuelled by a global expansion of the Infiniti luxury brand.

Ike said Honda was also preparing a big model offensive for its premium Acura brand, which sells about the same number of cars as Infiniti, or around 160,000 a year.

"We've got quite a number of new models in the pipeline," Ike said, declining to provide details. He added, however, that unlike Nissan, Honda had no plans to spread the brand into more markets. Honda sells Acura cars in North America and China.