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Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Acura built just 91 examples of the ILX last month, here's why

The short life of the Acura ILX has been vexed by one glaringly odd standard equipment choice, mediocre reviews, getting outsold by its competition as it posted slower-than-projected sales and a pledge by Honda to upgrade its supposedly upgraded offering. Therefore, when Automotive News reports that just 91 of the Civic-based Acura sedans were manufactured last month - after a string of production months in double-digits - it would be easy to press the button for the alarm bells.
But that would be hasty, because it is actually the 2013 Honda Civic that is crimping the production pipeline of the ILX. The vastly higher sales numbers of the Honda meant that all three North American plants that produce it needed to crank up output to satisfy dealer inventory needs, including the Greenburg, Indiana plant that makes both the Civic and the ILX. As the classic guns-vs-butter Economy 101 lesson taught us - in which making more of one necessarily means making less of the other - well, the Civic is the gun.
Honda prepared for this eventuality by cranking out the Acuras while it got ready for Civic production. The ILX has held steady at about 500 units shy of company projections every month, and the current inventory represents about 90 days worth of sales. That makes Greenburg's ostensibly low numbers in line with the realities of the ILX, and the situation probably won't change much as Acura gets ready for the improved 2014 ILX.

Honda CR-Z will run Pikes Peak with full-EV power

Honda is running a CR-Z at Pikes Peak this year. But as you might have guessed, this is no ordinary CR-Z. This particular racing prototype packs an experimental powertrain. Though precise technical specifications remain a closely guarded secret at this point, our source at Honda has confirmed a few key details. For starters, the CR-Z racer packs a fully electric powertrain, ditching the 1.5-liter inline-four that forms the internal-combustion component of the street-legal model's hybrid propulsion system. This contrary to circulating rumors that it could be packing the hybrid powertrain from the new NSX. Whatever the details of the electric motor (or motors) on board, they'll be driving and steering all four wheels through Honda's proprietary Super Handling All-Wheel Drive (SH-AWD) and Precision All-Wheel Steer (P-AWS) systems. The technologies ought to make the CR-Z racer pretty adept at tackling the 156 twists and turns of the world-famous Race to the Clouds. The aero package is obviously pretty aggressive as well, and the bodywork appears to have been modified to an even greater extent than the carbon-fiber prototype we drove in Japan. Driving duties will be handled by Tetsuya Yamano, a Japanese driver known in the Super GT series (where he won the GT300 title in 2004 in an NSX) and for running Civics in Gymkhana events back in the 90s. It'll be competing in the Pikes Peak Challenge Exhibition class, but the idea behind the CR-Z prototype is as much about experimentation as it is about results. The project will serve to train some of Honda's younger engineers. They won't be alone on the mountain, though, as Honda also recently announced that it would be fielding its new ARX-04b Le Mans prototype at Pikes Peak this year as well. Related Video: Featured Gallery Honda CR-Z SH-AWD P-AWS Pikes Peak News Source: Honda Green Motorsports Honda Green Culture Hatchback Electric Racing Vehicles pikes peak hill climb