2012 Honda Accord Lx Sedan 4-door 2.4l on 2040-cars

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Honda Accord Hybrid sales capacity constrained

Honda might be selling more hybrids if it could just get them to dealers. While the second-generation Insight never lived up to sales expectations and production is ending, the Japanese automaker is seeing strong demand for the Accord Hybrid here and abroad. However, there is so much global consumer desire that it can't keep them in US showrooms.
The problem limiting the sales of the Accord Hybrid is its battery pack and its popularity in Japan. "There's a waiting list for the product," said Jeff Conrad, Honda general manager, to Ward's Auto about the sedan's US popularity. While the American Accord is built in Marysville, OH, the batteries are imported from Japan, where the model is quite popular. According to Ward's data, the automaker sold 2,414 examples of the hybrid version from October 2013 to February 2014 in the US, but it shifted 6,000 units in Japan in its first three months on sale. Conrad also admitted that the constrained supply is limiting the amount of marketing the automaker can do for the hybrid.
Honda spokesperson Chris Martin told Autoblog the company is working on a solution to increase production for the near future. "We are going to resolve the battery issue," he said.

Average new-vehicle transaction price hits a whopping new peak in December

Elevated prices for products and higher borrowing rates led to record high transaction prices for new vehicles in December, with the average cost in the U.S. rising to a record $49,507, according to data from Kelley Blue Book released today. The report notes that ATPs — average transaction prices — have climbed above suggested retail prices — MSRPs — for more than a year. Sales volumes were up in December on a year-over-year basis by more than 5%, a situation Kelley attributed to improved supply. Overall sales for 2022, however, were off 8% year over year. “The transaction data from December clearly indicates overall prices showed no signs of coming down as we headed into year-end,” said Rebecca Rydzewski, research manager of economic and industry insights for Cox Automotive. “Luxury prices fell slightly in December, but non-luxury transaction prices were up. Truck sales were particularly strong last month, and with many trucks selling for more than $60,000, a new record was all but inevitable.” Industry analysts claim the most obvious headwinds in the new car market are generated by higher interest rates, forced by the Federal Reserve's rate hikes intended to tame inflation, and by generally limited inventory. A recent report from J.D. Power showed that the average monthly payment for a new vehicle loan in December was $718, up $47 from a year ago. But 16% of consumers in December took out loans with monthly payments of over $1,000. Consumers think vehicles, and electric vehicles especially, are way too expensive. Fortunately, manufacturersÂ’ incentives, all but extinct in the past two years, are returning, especially in the electric-vehicle and luxury market, the Kelley data suggest. Plus, "With the new tax credits on the way, electric vehicle ATPs will drop lower for qualifying vehicles,” Rydzewski said. Non-luxury brands, such as Honda and Kia, showed particularly strong performance in December, with the average price paid at $45,578 — a record high and an increase of $994 month over month. Meanwhile, the average luxury buyer paid $66,660 for a new vehicle last month. Mercedes-Benz and Land Rover showed the most price strength in the luxury market, transacting between 2.6% to 6.5% over sticker price. But luxury brands Audi, BMW, Infiniti, Lexus, Lincoln, and Volvo showed the least price strength with some discounting in effect, selling 1% or more below MSRP in December, according to the survey.

Honda ditching Takata for next Accord's airbags

Today brings unsurprising news that Honda will move away from Takata and source airbags for the next-generation Accord, among other models, from one of the embattled company's competitors. Both companies have been in headlines of late after the former recalled millions of vehicles that were fitted with the latter's airbag inflators, which had the unpleasant tendency to spew shrapnel at consumers. The move, as Reuters explains it, is particularly devastating for Takata. Honda is the company's largest customer, and the Accord represents its biggest product, accounting for over a quarter of the company's sales last year. It gets worse, though, as a confidential source with knowledge of the situation is reporting to Reuters that both the 2016 CR-V and Odyssey will source their airbags from Toyoda Gosei. If true, that'd mean that Takata will be losing out on more than half the cars Honda sells in the US market. At this point, Takata, Honda and Toyoda Gosei have all passed on opportunities to comment to Reuters.