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Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

Honda HR-V could spawn Acura variant

We've been saying it for months now, but the compact CUV is the next big thing. Everyone, and we mean everyone, is at least considering getting in on the action, if they aren't already actively designing or selling, and that's true whether they're a premium or mainstream automaker. That, of course, includes Acura, whose parent company, Honda, has a compact CUV of its own coming to market very, very soon. With the arrival of the Fit-based HR-V, that begs the question of whether the near-premium marque will join this burgeoning segment. The idea of building a car below the company's entry level CUV, the RDX, is an appealing one to Honda Executive Vice President John Mendel, who called it "potentially the only place you could go," and would occupy the "white space" the company is looking to fill. While we might chuckle about the idea of a luxurious, Fit-based CUV, it's fair to say it could do well for Acura. It could certainly provide a foil to the very hot selling Buick Encore, and may even capture some sales from the luxuriously outfitted Jeep Renegade Limited/Fiat 500X Lounge. It remains to be seen, though, if Acura could build an HR-V capable of tangling with the new entries from Lexus, Audi and Mercedes-Benz.

2015 Honda Fit

The last time we left our subcompact hero, the plucky Honda Fit was getting a bit long in the tooth. But the second-generation model was still holding its own rather well, and for the enthusiast on a tight budget who wanted it all, it remained the car of record in its class. If you desired an endlessly practical and reliable little hatch that was fun to drive, it didn't get much better than the Fit. Even with nearly every competitor having been fully freshened since the model's introduction in 2009, the Honda managed to fight off also-ran status simply because of how incredibly functional and great to drive it was. Long story short: we loved this car.
Of course, there were a few caveats to the Fit's superhero status. It wasn't particularly fuel efficient, only mustering up, at best, 33 miles per gallon on the highway in a segment where 40-mpg quickly became the new benchmark. What's more, its onboard technology and infotainment was seriously showing its age. While we'd praise the Fit's behind-the-wheel goodness all day long, this shining beacon of great steering and suspension tuning never proved to be all that wonderful for long-distance highway cruising.
Now, say hello to the 2015 Fit, hitting dealerships this spring. Worry not - it's still clever as ever from a packaging standpoint, and comes fitted with lots of newness both inside and out. It's a far more competitive vehicle than its predecessor, and has everything it takes to fight even the toughest of classmates. But just as before, our recommendation doesn't come without a few caveats.