2012 Honda Pilot Touring Leather Navigation Rear Camera on 2040-cars

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Honda could halve its US lineup without crimping its sales much [w/video]

Taking a detailed look at the Honda lineup in the US, it isn't hard to see the strength of some models and the weaknesses of others. A recent report on Autoline Daily points out that its five core models - the Accord, Civic, CR-V, Odyssey and Pilot - make up a full 93 percent of Honda's sales in the US. Through April, Honda has sold 419,798 vehicles, and 389,474 of them were from these core models; not to mention the fact that the Accord was the top-selling car in the US last month.
This means that Honda could technically cut six of its 11 models and only lose about 5,000 sales per month. Of course, this is just some data crunching and there is no reason to believe that Honda is planning to kill off any of its models in the near future. In fact, it seems to be committed to the Ridgeline, while Japanese-made models that may actually lose money for Honda still fill unique voids. Scroll down for the video report - fast-forward to the 1:43 mark for the Honda info.

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 opening first new motherland plant in almost 50 years

Despite opening dozens of overseas plants in the past several decades in locations all over the globe, Honda Motor Co. has not expanded its car manufacturing capabilities in its home market of Japan since opening a facility in Sayama back in 1964.
But all of that is set to change this July when Honda opens the doors to a new assembly plant in Yorii, about two hours north of Tokyo. According to Bloomberg, the new facility has a projected annual capacity of 250,000 vehicles. The plant is part of the automaker's reorganization efforts, plans that include scaling back its older Sayama plant and bringing Yorii online with more efficient and innovative technology. There are additional benefits, too, as the Yorii plant is expected to create 3,800 jobs, both on-site and at its suppliers, and boost the local economy as other businesses ramp up to accommodate the influx of new workers.
While the automaker has not released specifics about which models will be produced at Yorii, Honda is expected to consolidate production of models including the Fit, a best-seller in its domestic market.