Honda’s US sales drop in its fiscal second quarter, global results for which were announced on Monday (31 October) was the “worst quarterly drop off we have on record” [back to 1991], according to Edmunds.com analysts in Los Angeles. US sales in the quarter were off 20.8% to 252,355 units, according to their data.
The Civic redesigned for 2011 [panned by key critics such as Consumer Reports and popular consumer magazines – ed] has just had its worst quarter “in quite some time”, according to Edmunds. Numerous recent reports in the US have said Honda has pulled forward a mid-life refresh of its usually strong selling ‘compact’ (sold as a sedan and coupe in North America rather than the hatchback offered in Europe) to 2013 from the originally planned 2014.
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“While Honda market share is down 2.3 percentage points since last year, the average transaction price for a Honda is up 5.8% and the average incentive on a Honda is down 11% year to date. This speaks to the inventory shortages the company has been experiencing since the earthquake,” Edmunds said.
In the United States, tight inventories meant it took Honda a mere 40 days to sell a vehicle once it arrived at the dealer. Still, Honda didn’t have many vehicles to sell so sales were down nearly 21% at a time when US auto sales in total were up 6%. As a result, Honda dropped 2.7 percentage points of market share.”
“One of Honda’s venerable high-volume leaders along with the Accord, the so-called ‘new’ Civic has been highly criticised by the automotive media and did not make the cut as a candidate for the journalists-awarded North American Car of the Year honours,” noted Edmunds.com senior analyst Michelle Krebs.
