Honda to Sell Entry-Level Compact in U.S. in 2006...
Honda to Sell Entry-Level Compact in U.S. in 2006
Dec. 24 (Bloomberg) -- Honda Motor Co., Japan's third- largest carmaker, plans to export a compact car from Japan aimed at young drivers in the U.S starting in 2006, following the success of Toyota Motor Corp.'s entry-level range of cars.
``We are bringing a car from Japan for entry level and young people in the U.S.,'' Honda President Takeo Fukui said in an interview this week, without naming the model. The U.S. first-time buyers' market has been left ``vacant'' by Honda, he said.
The compact car, which will be smaller than the Civic model, is among a range of vehicles that Fukui, 60, plans to release to compete with Toyota, Hyundai Motor Co. and others in the world's largest vehicle market, where Honda generates as much as 80 percent of its operating profit. The Tokyo- based carmaker expects to sell 1.45 million vehicles in the U.S. in 2005, 5 percent more than this year, according to Honda's forecast this week.
``It makes sense for them to export the vehicle from Japan as compact cars are becoming more popular in the U.S.,'' said Koji Endo, an analyst at Credit Suisse First Boston in Tokyo. ``Toyota had success in the U.S. with its Scion brand and Honda will probably succeed, too.''
Honda, which ranks fifth in the U.S., has filed for U.S. trademarks related to the Fit compact car in 2003, according to the U.S. Patent and Trademark Office. Rival Nissan Motor Co. plans to sell a compact car in the U.S. in 2007.
Fit
Honda makes and sells the Fit compact car in Japan, which has either a 1.3-liter or 1.5-liter engine, for between $10,750 and $22,000. The five-door hatchback was Japan's best- selling vehicle model in August and September. The model is sold as the Jazz compact car in Europe and is also exported from Japan.
Toyota's Scion cars, which are priced as low as $12,995, have helped Toyota increase its market share by 1 percentage point in the first 11 months of 2004, while Honda's share were unchanged at 8.2 percent in the same period.
Toyota on Nov. 8 raised its U.S. sales target for the Scion range to 125,000 next year from an earlier forecast of 100,000 as 2004 sales approached the company's goal for the year.
Honda's shares rose as much as 1 percent to 5,310 yen in Tokyo. The stock has risen 11 percent this year, outperforming the Topix stock average.
Ridgeline
Honda will also start selling its Ridgeline light truck in the U.S. next year, based on the same chassis platform as its Pilot sport-utility vehicle. Honda's current U.S. models include the Odyssey minivan, the Accord sedan and the Civic compact cars.
``Honda has been releasing models that are dedicated to each market and that strategy has worked, especially in the U.S.,'' said Graeme Maxton, managing director of London-based consulting firm Autopolis.
Honda, which makes Asimo robots and owns a Formula One racing team, will also release a second sport-utility vehicle under its Acura luxury brand in 2006. The new vehicle will be produced at one of its two plants in Ohio.
Honda has plants Marysville and East Liberty. Fukui declined to say at which Ohio factory the automaker will make the model.
The automaker has lowered production at East Liberty because the Civic is reaching its final model year, before a full model change in 2005. Honda's North American production capacity will reach 1.33 million units in 2005, up from 1.22 million this year, as it expands production at its Lincoln, Alabama factory, Fukui said.
Drôle pareil que dans ce communiqué US, on parle de la réussite de Scion aux USA, alors qu'ici, on voit des Toyota Echo à tous les coins de rue.
Étant exportée du Japon, Honda va avoir de la misère à rentrer dans son argent avec ce modèle. Surtout avec la chute continue du $US depuis 1 an face au yen et à l'Euro.
Mais ils n'ont pas le choix d'offrir ce modèle pour contrer Toyota et les coréens. Kia et Hyundai auront de nouvelles sous-compactes sous peu et la Fit viendra occuper ce créneau et remplir le trou laissé par la Civic qui prendra vraisemblablement du coffre pour sa refonte de 2006.
