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  • William Maley
    William Maley

    Honda Sees A Different View When It Comes To Cars

      ...It comes down to who is buying their vehicles...

    Like most mainstream automakers, Honda is raking in the cash with their lineup of crossovers. But Honda is also doing quite well when it comes to cars, a bit surprising since the news is flooded with automakers deciding to cut back on their lineup - though we should note that Honda is planning on slimming down their lineup, both in trims and models in the coming years.

    "What's perhaps more unusual and important for us, however, is our cars. We all know the narrative: Cars are dead and dying. That's certainly true for some, but not for us. Our story is a little different," said Henio Arcangeli Jr., senior vice president of the automobile division of American Honda Motor Co.

    How is that story different at Honda? It comes down to certain groups of buyers.

    "But cars really matter for another fundamental reason: the future. Cars play a crucial role for Honda in attracting and retaining new buyers, particularly young buyers, millennials and Gen Z," said Arcangeli.

    Data gathered by the company revealed more than half of first-time buyers of news are choosing cars, not trucks or utility vehicles. We have to wonder if the lower prices of new cars play a key role in this.

    "So, we're dominating the front door with new buyers, with cars playing a critical role. Gen Z today is still a relatively small share of the market, but it's growing daily, and Honda is in the early lead."

    Source: Automotive News (Subscription Required)

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    If entry level CUVs were not so over priced, Gen Z would be buying them. Yet with School debt, buying an auto is not something the bulk of Gen Z can afford any longer. Cars are the only option for the few that can afford a auto payment.

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    Civic sales may be down a bit, but they're still selling a boatload of them. Accord was hurt by some questionable styling, but it is a fantastic car, probably best in class. I think Honda will keep on doing well with cars and may even get to take advantage of other companies ditching the segment. 

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    I wonder what GM's plan is to address the young buyer issue.  Too many NEW GM vehicles have average buying ages that are north of 50 rather than south of 40.  This is a real problem.

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    Honda really has 2 cars, Civic and Accord.  So it isn't like they have models to cut, it isn't like they have 5 sedans.  And they have mainstays in the segment.   As long as the price is decent on them, they will be fine for decades more to come.  Stuff like the Insight, Clarity, Fit, and whatever other oddball stuff they make my not last.

    People have to get sick of crossovers at some point.  Baby Boomers don't want full size sedans because their parents had them, Gen Xers don't want minivans because their mom had one in the 90s and they aren't cool.  I could see Gen Z not wanting crossovers since their parents all had one.

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    Not putting all the eggs in the SUV/Crossover segment is a prudent move. Like most things, trends WILL change. Remember the 90s when SUVs were the fad? Then suddenly they weren't. Now CUVs are the fad and someday they won't be. For GM and Ford to basically abandon cars is a very dangerous move.

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