Send to a friendhwyhobo February 27th, 2008 2:01 PM Link
Quality of the product and the right price determines desirability. During weak economic times the best survive. Darwin at work.
Honda CEO Says No U.S. Recession
Written By: Dustin P. Walsh
Nissan CEO Carlos Ghosn says recession; Honda Motor Co. CEO Takeo Fukui says oushikuso.
“It is true that in states like Florida and California, the numbers are going down,” Fukui told Automotive News. “But, if you look at the U.S. as a whole, I don’t think we’re seeing a recession. There are still good business opportunities. There is firm demand for automobiles.”
(More details after the jump)
Despite Nissan’s claim of a U.S. automotive recession, Honda’s numbers have been strong – record-setting strong – on the East Coast and Midwest, according to Fukui. And, he said, those markets show no signs of weakening.
Fukui said the markets are swaying away from SUVs and moving toward cars, which he said is great for Honda as its strength is fuel-efficient cars.
While the numbers could be attributed to Honda’s decent incentives, Fukui said Honda doesn’t plan to offer increase them like other automakers. “Rather than relying on increased incentives to sell vehicles,” he said, “it’s more important to offer customers good products at the appropriate price range.”
+ Automotive News: Honda’s Fukui: No recession in U.S.
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8 Comments
Russ Bellinis February 27th, 2008 4:10 PM Link
I’m not sure how much of a recession there really is. Property values have slacked off lately in So Cal, but nobody in their right mind should have expected the values to remain at the heights they were at in early 2007. The lowered property values combined with foreclosures on property that people weren’t too careful with financing has reduced construction, but I wonder if that isn’t somewhat offset in So Cal by the number of houses needing to be rebuilt from the fires last year in San Diego County and the mountain areas.
MJK February 27th, 2008 4:18 PM Link
I am also skeptical about this type of talk. Our company has had a record couple of months sales wise and we are very busy with future projects, which seems to laugh in the face of what you might see on the nightly news.
The Stig February 27th, 2008 4:24 PM Link
Makes sense. When things get tighter (and they ARE getting tighter) people want more value for their dollar and want to buy what will last the longest. Honda’s generally get good mileage and have a reputation for lasting longer with lower maintenance. So, people will turn to those products more for their efficiency and expected service life since they won’t want to have to replace them as soon as they normally might. So I can very well see how their sales could increase while many others are going down.
Mena February 27th, 2008 5:35 PM Link
So, people will turn to those products more for their efficiency and expected service life since they won’t want to have to replace them as soon as they normally might.
While maintaining strict adherence to the buy a new car every 5 years mentality. People might buy new cars that last longer in uncertain times but they still trade or sell for a new one in the standard 4-5 years.
hwyhobo February 27th, 2008 7:10 PM Link
Perhaps I hate waste, but in my entire life I had only one car that I replaced in 5 years. All the others lasted much longer.
detroit9000 February 27th, 2008 8:28 PM Link
Thanks for the good news! When Honda says something like that, it usually has a little more punch.
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