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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 and Acura electric crossovers will be built by General Motors

General Motors will partially offset the cost of developing electric technology by manufacturing battery-powered cars for Honda and Acura, according to an unverified report. Ultium battery technology is at the center of the deal. Without citing sources, industry trade journal Automotive News wrote that Honda has agreed to enlist rival-turned-partner General Motors as one of its EV suppliers during the first half of the 2020s. The factory that currently builds Chevrolet's Blazer and Equinox in Ramos Arizpe, Mexico, will begin manufacturing a Honda crossover in 2023, meaning it likely won't arrive until the 2024 model year. On the other side of the border, the former Saturn plant in Spring Hill, Tennessee, will churn out an Acura crossover beginning in 2024, about two years after it starts making the Cadillac Lyriq. Neither model has been revealed, and Honda hasn't commented on the report. Insiders familiar with the contents of the firm's product pipeline told Automotive News that both crossovers will be about as big as the Lyriq (pictured), which will be close in size to the 190-inch long XT5. Power for the two models will come from the Ultium battery technology that General Motors is developing for over a dozen electric cars, including the GMC Hummer and a Chevrolet-badged pickup we might discover next week during CES 2021. Both EVs will be built by General Motors, and they'll be powered by General Motors-developed technology (some will even receive OnStar and the hands-free Super Cruise driver assistance system), but everything motorists see and touch will be Honda- or Acura-specific. We're not expecting that the tie-up will spawn a pair of blandly badge-engineered crossovers; stylists will likely give each one its own design identity inside and out. Honda had previously confirmed plans to build at least two electric models on General Motors bones, and it announced that its American partner would also handle manufacturing, but this is the first time executives are throwing Acura onto the stage. What remains to be seen — assuming the report is accurate — is whether the Lyriq will compete directly against its Acura-branded sister model, or if they'll be positioned in different segments. Related video: Featured Gallery Cadillac Lyriq show car Green Acura Honda Electric

Japanese automakers ramping production for renewed American sales

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.
Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.
Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.