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William Maley

December 2012 - American Honda

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All-New Accord and Civic Drive Sharp Honda Monthly and Annual Sales Gains; ILX and RDX Fuel Acura Jump; American Honda Posts Best Annual Sales Result Since 2008

  • Honda Division annual sales up 23 percent, Acura annual sales up 26 percent

TORRANCE, Calif.


Buoyed by strong December 2012 U.S. sales of 132,774 units, an increase of 26.2 percent compared with December 2011, American Honda posted annual vehicle sales of 1,422,785 units in 2012, up 24.0 percent compared with 2011. This makes 2012 American Honda's fourth-best sales year ever, and its best sales result since 2008.


Honda

The Honda Division posted December 2012 sales of 116,740 units, an increase of 26.8 percent compared with December 2011 and less than 500 units shy of an all-time December record. The Honda Division's 2012 annual sales of 1,266,569 increased 23.7 percent compared with 2011. The three top-selling Honda models for 2012 were Accord, 331,872; Civic, 317,909; and CR-V, 281,652.


- Civic sets all-time December record with sales of 33,118 units, up 61 percent from last year

- All-new 2013 Accord sales up 66 percent from last December with sales of 29,428 units

- CR-V sets an all-time annual sales record (281,652) and its tenth monthly sales record since launching last December, up 19 percent from last year to 25,733 sales


"Honda began the year intent on recovery," said John Mendel, American Honda executive vice president of Sales. "We ended 2012 with multiple product awards, a host of sales records, Honda's second best December ever, and tremendous momentum as we head into 2013."


Acura

Acura U.S. December sales of 16,034 units represents an increase of 22.1 percent over December 2011. The Acura Division's year-end sales totaled 156,216, up 26.7 percent compared with 2011 results - and the brand's best sales results since 2007. The MDX led the division with annual sales of 50,854, followed by the TL with sales of 33,572 and the RDX with sales of 29,520.


- RDX sets its eighth-consecutive monthly sales record, up 155 percent from a year ago with 4,024 sales - setting monthly sales records in each month since going on sale in May 2012

- MDX was the top selling Acura model in December, with 5,069 sales, up 10 percent from 2011

- ILX is top selling Acura sedan in December with 2,485 sales


"December was another month of tremendous sales growth fueled by our newest products, the Acura ILX luxury compact sedan and the RDX crossover SUV," said Jeff Conrad, vice president of Acura Sales, "Acura is primed for even more success in 2013, with the upcoming launch of the brand's flagship RLX sedan and the unveiling of the 2014 MDX Prototype at the 2013 Detroit Auto Show."


The daily selling rate (DSR) is calculated with 26 days for December 2012 and 27 days for December 2011. Year-to-date, the DSR is calculated with 307 days for 2012 and 307 days for 2011. All other percentages in release are unadjusted; see table for adjusted DSR figures.


For more information about Honda vehicles, please visit www.automobiles.honda.com. For media inquiries please visit www.hondanews.com. For more information about Acura vehicles, please visit www.acura.com. For media inquiries please visit www.acuranews.com.
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Wow...can't believe they are selling this well.

They build about zero that appeals to me....

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      On Wednesday, Honda CEO Takahiro Hachigo announced plans for the future of the company's automobile division. Efficiency was the theme in Hachigo's speech in terms of their lineup. manufacturing, and driving.
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      Remarks by Takahiro Hachigo, President & CEO, Honda Motor Co., Ltd. May 8, 2019
      Honda has been working on two top-priority management challenges in the midst of abrupt changes in the global business environment surrounding the automobile industry: to strengthen the structure of our automobile business and to further increase the speed of business transformation for future generations.
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      Strengthening automobile business structure 
      Ever since I became the president of the company, I have been conveying the message that we will make Honda strong by creating strong products and also by strengthening our inter-regional coordination and collaboration. We put special emphasis on the strengthening of our global models, which have been the source of Honda's core competence, and also the enhancement of our regional models.
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      From here onward, we think it is important to increase our competitiveness by increasing the efficiency of our production system in North America.
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      Direction for the electrification of our automobile products
      Striving to realize a carbon-free society, Honda set a goal to electrify two-thirds of our global automobile unit sales by 2030.
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      To this end, we will expand the application of our 2-motor hybrid system to the entire lineup of Honda vehicles. In addition to the 2-motor hybrid system which is compatible with mid-to-large-sized vehicles, we developed a new, more compact 2-motor hybrid system suitable for small-sized vehicles. This small-sized 2-motor hybrid system will be adopted first by the all-new Fit which we are planning to exhibit as a world premiere at the Tokyo Motor Show this fall.
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      In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market.   
      In China, in order to keep up with the fast speed of electrification, we have already begun introducing battery EV models developed together with our local joint venture companies in China. While envisioning the introduction of battery EV models from the Honda brand, we will continue utilizing local resources in China and introduce more battery EV models in a timely manner to fulfill local market needs in China.
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      As we stated in our 2030 Vision, Honda is striving to grow through the pursuit of quality so that we can fulfill our vision to "Serve people worldwide with the joy of expanding their life's potential."
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      *1 S-E-D-B: Sales, Engineering (Manufacturing), Development (R&D), Buying (Purchasing)

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    • By William Maley
      On Wednesday, Honda CEO Takahiro Hachigo announced plans for the future of the company's automobile division. Efficiency was the theme in Hachigo's speech in terms of their lineup. manufacturing, and driving.
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      "However, as a result of accommodating regional needs somewhat excessively in each individual region, we recognize that the number of models and variations at the trim and option level have increased and our efficiency has declined. So, we will undertake initiatives to further strengthen our inter-regional coordination and collaboration and advance our art of making automobiles in order to simultaneously increase the attractiveness and efficiency of both global and regional models," he said.
      "With this initiative, by 2025, we will reduce the total number of variations at the trim and option level for our global models to one-third of what we have now.In addition, we will increase efficiency by eliminating and consolidating some similar regional models into even more competent models shared across multiple regions."
      This will allow Honda to simplify model allocation at their various assembly plants around the road. According to Hachigo, this will allow the company to achieve "100 percent capacity utilization worldwide by 2020" and cut production costs by 10 percent by 2025. 
      Part of that initiative involves a new modular architecture that will debut in a global model next year. No details on the vehicle were provided, but Honda says the goal of the architecture "is to commonize about 70 percent of the components" used in a vehicle such as the engine bay and passenger cabin.
      Honda is also planning to have two-thirds of their global lineup electrified by 2030. Furthermore, it wants 100 percent of its European lineup to be electrifed by 2025. To do this, Honda is readying a new electric city car known as the e, along with deploying their two-motor i-MMD hybrid setup to all of their models in Europe. In the U.S. Honda is planning to launch more hybrid models, and increase their electric car lineup with some help from General Motors.
      “In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market,” said Hachigo.

      Press Release is on Page 2
      Summary of Honda CEO Speech on Automobile Business Direction
      Remarks by Takahiro Hachigo, President & CEO, Honda Motor Co., Ltd. May 8, 2019
      Honda has been working on two top-priority management challenges in the midst of abrupt changes in the global business environment surrounding the automobile industry: to strengthen the structure of our automobile business and to further increase the speed of business transformation for future generations.
      So, today, I would like to introduce some initiatives we are taking for our automobile business, especially how we are strengthening the structure of our automobile business, the direction we are taking with electrification, as well as some progress we have made to date.
      Strengthening automobile business structure 
      Ever since I became the president of the company, I have been conveying the message that we will make Honda strong by creating strong products and also by strengthening our inter-regional coordination and collaboration. We put special emphasis on the strengthening of our global models, which have been the source of Honda's core competence, and also the enhancement of our regional models.
      As a result, we currently have the five global models, namely Civic, Accord, CR-V, Fit/Jazz and Vezel/HR-V, and these five strong models now account for 60% of our global automobile sales. At the same time, our regional models such as the N Series for Japan, Pilot for North America and Crider for China are playing an important role as a source of growth for each respective region.
      However, as a result of accommodating regional needs somewhat excessively in each individual region, we recognize that the number of models and variations at the trim and option level have increased and our efficiency has declined. So, we will undertake initiatives to further strengthen our inter-regional coordination and collaboration and advance our art of making automobiles in order to simultaneously increase the attractiveness and efficiency of both global and regional models.
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      As for inter-regional coordination and collaboration, under the new operational structure we adopted for our automobile operations starting from April, we began reviewing and sharing the product lineup by grouping some of our six regions outside Japan based on a similarity of key factors, such as market needs and environmental regulations. With this initiative, by 2025, we will reduce the total number of variations at the trim and option level for our global models to one-third of what we have now. In addition, we will increase efficiency by eliminating and consolidating some similar regional models into even more competent models shared across multiple regions.
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      Moreover, we have already introduced the Honda Architecture in our development.
      The Honda Architecture is a company-wide initiative which will increase the efficiency of development and expand parts-sharing for our mass-production models. The first model being developed with this new method will be the global model we are launching next year. And we will continue increasing the number of models to which we apply this new architecture.
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      In addition to the area of development, we are further strengthening our operational structure in the area of production as well, so that we can create strong products with high efficiency.
      We are making steady progress in optimizing our production capacity in all regions. When this is complete, we are expecting to see that our global capacity utilization rate, excluding China, will increase from 90% recorded in 2018, and we will be producing at full capacity by 2022.
      In China, the third plant of Dongfeng Honda became newly operational, and this put us in a position where we can definitely accommodate market demand in China. We believe that this progress we made paved the way for the optimization of our global production capacity.
      From here onward, we think it is important to increase our competitiveness by increasing the efficiency of our production system in North America.
      For our business in North America, while keeping pace with sales expansion, we enhanced our model lineup and established a flexible production system where our plants sometimes produce various models in duplication to accommodate changes in market demand. However, as a result of the pursuit of high flexibility, an increase in the investment amount and a decline in production efficiency started to become an issue. Therefore, in North America as well, we will reduce the number of variations at the trim and option level, and at the same time, we will simplify the production model allocation at each plant. Through this initiative, we will re-establish a highly-efficient production system and realize the growth of North American business through the pursuit of quality.
      By implementing these initiatives to increase production efficiency in each region, we are expecting to reduce global cost in the area of production by 10% by 2025, compared to the cost recorded in 2018.
      Through all these initiatives I have mentioned, we will steadily strengthen the structure of our automobile business and realize the solidification of our existing automobile businesses by 2025, and, at the same time, we will accelerate our preparation for the future.
      Direction for the electrification of our automobile products
      Striving to realize a carbon-free society, Honda set a goal to electrify two-thirds of our global automobile unit sales by 2030.
      When we talk about the introduction of electrified vehicles, there are two perspectives. One is the improvement of fuel economy, and the other is zero emissions. Regulations for the Corporate Average Fuel Economy (CAFE) standards are becoming increasingly stringent in every country around the world and complying with CAFE standards is one of the most important challenges for the automobile industry. At Honda, in light of the required infrastructure and how people use automobiles, we believe that hybrid technology is, at this moment, the most effective way for us to comply with CAFE standards. Therefore, we will electrify our products mainly with hybrid technologies. By increasing sales of our hybrid models all around the world, Honda will contribute to the global environment through the improvement of fuel economy.
      To this end, we will expand the application of our 2-motor hybrid system to the entire lineup of Honda vehicles. In addition to the 2-motor hybrid system which is compatible with mid-to-large-sized vehicles, we developed a new, more compact 2-motor hybrid system suitable for small-sized vehicles. This small-sized 2-motor hybrid system will be adopted first by the all-new Fit which we are planning to exhibit as a world premiere at the Tokyo Motor Show this fall.
      In addition to the expansion of the lineup of products equipped with the 2-motor hybrid system, we also will expand the application of the 2-motor hybrid system on a global basis. With that, by 2022, we are expecting to reduce the cost of the 2-motor hybrid system by 25% compared to the cost of this system in 2018.
      As for zero emission vehicles, with our battery EVs we will comply with the Zero Emission Vehicle (ZEV) program being adopted by California and other states in the U.S. and China's New Energy Vehicle (NEV) mandate. We will efficiently introduce our battery EVs to the market by selecting the most appropriate partners and resources to satisfy the different needs in each region.
      In North America, we will jointly develop battery components with General Motors and introduce highly-competitive battery EVs in the market.   
      In China, in order to keep up with the fast speed of electrification, we have already begun introducing battery EV models developed together with our local joint venture companies in China. While envisioning the introduction of battery EV models from the Honda brand, we will continue utilizing local resources in China and introduce more battery EV models in a timely manner to fulfill local market needs in China.
      In Europe and Japan, we will introduce the Honda e, a new battery EV model, which was recently introduced as a prototype at the Geneva Motor Show.
      To summarize, Honda will popularize and improve the business feasibility of electrified vehicles by focusing on hybrid vehicles and battery EVs.
      Changes in operational structure
      In order to ensure the solid implementation of these initiatives I just introduced for our automobile business, we renewed our operational structure as of April. The aims of this structural change are to establish an organization which brings all regional operations together to strongly facilitate inter-regional coordination and collaboration and to increase the speed of our business operations by enabling prompt decisions and prompt execution.
      Today, I introduced our initiatives to strengthen our automobile business structure and the direction of our electrification. Under the new organizational structure, we will realize our goals with a keen sense of speed. 
      Closing
      As we stated in our 2030 Vision, Honda is striving to grow through the pursuit of quality so that we can fulfill our vision to "Serve people worldwide with the joy of expanding their life's potential."
      Honda will continue taking on new challenges while being driven by strong passion, so that we can continue to be a company that society wants to exist even in 2050 after Honda becomes more than 100 years old. 
      *1 S-E-D-B: Sales, Engineering (Manufacturing), Development (R&D), Buying (Purchasing)
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    • By Drew Dowdell
      Quarterly:
      Ford Motor Company - Not reported
      General Motors Co. - Not Reported
      Tesla - Not Reported
      FCA has announced that beginning October 2019, they will be reporting sales quarterly

      Monthly:
      Audi of America -  Down 21% for the month, Down 8.7% for the year
      BMW of North America -  Down 2.9% for the month, Down 2.1% for the year
      FCA US LLC -  Down 6% for the month, Down 4% for the year
      Genesis Motor America - 
      Honda Motor Co. -  Up 0.1% for the month,  Up 1.5% for the year
      Hyundai Motor America -  Up 0.7% for the month, Up 1.7% for the year
      Jaguar Land Rover North America - 
      Kia Motors America - Up 1.6% for the month, Up 5.9% for the year
      Mazda North American Operations - Down 14.5%  for the month, Down 15.4% for the year
      Mercedes-Benz USA - Down 14.6% for the month, Down 10.7% for the year
      Mitsubishi Motors North America -  Down 12.9% for the month, Up 12% for the year
      Nissan Group - Up 9.0% for the month, Down 8.4% for the year
      Porsche Cars North America Inc. -  
      Subaru of America, Inc. - Up 7.7% for the month, Up 5.5% for the year
      Toyota Motor North America - Down 4.4% for the month, Down 4.8% for the year
      Volkswagen of America -  Up 8.7% for the month, Up 3.9% for the year
      Volvo Cars of North America, LLC - Up 0.4% for the month, Up 7.1% for the year

      Brands (Quarterly):
      Buick -  Not Reported
      Cadillac -  Not Reported
      Chevrolet - Not Reported
      GMC - Not Reported
      Ford - Not Reported
      Lincoln - Not Reported
      Tesla - Not Reported

      Brands (Monthly):
      Acura - Down 1.7% - 11,687 MTD / 48,072 YTD
      Alfa Romeo - Down 14% - 1,584 MTD / 5,870 YTD
      Audi - Down 21% 15,024 MTD / 63,139 YTD
      BMW - Up 1.4% - 23,816 MTD / 97,704 YTD
      Chrysler - Down 37% - 9,987 MTD / 40,578 YTD
      Dodge - Down 24% - 31,262 MTD / 141,779 YTD
      Fiat - Down 34% - 931 MTD / 3,145 YTD
      Genesis - 
      Honda - Up 0.2% - 114,088 MTD / 447,490 YTD
      Hyundai - Up 0.7% - 55,420 MTD / 203,005 YTD
      Infiniti - Down 5.2% - 8,491 MTD / 42,806 YTD
      Jaguar - 
      Jeep - Down 8% - 76,325 MTD / 289,129 YTD
      Kia - Up 1.6% - 51,385 MTD / 187,981 YTD
      Land Rover -
      Lexus - Down 1.3 - 21,360 MTD  / 88,151 YTD
      Mazda - Down 14.5% - 19,702 MTD / 90,535 YTD
      Mercedes-Benz - Down 15.7% 22,949 MTD / 94,120 YTD
      Mercedes-Benz Vans - Down 4.7% - 2,682 MTD / 10,158 YTD
      MINI - Down 29.8% - 2,621 MTD / 11,526 YTD
      Mitsubishi - Down 12.9% - 6963 MTD / 49,030 YTD
      Nissan - Up 10.7% - 87,207 MTD / 418,743 YTD
      Porsche - 
      Ram Trucks - Up 25% - 53,811 MTD / 190,824 YTD
      Smart - Down 8.6% - 85 MTD / 316 YTD
      Subaru - Up 7.7% - 57,288 MTD / 214,042 YTD
      Toyota - Down 4.8% - 162,506 MTD / 639,431 YTD
      Volkswagen - Up 8.7% - 31,309 MTD / 117,181 YTD
      Volvo - Up 0.4% - 8,367 MTD / 30,425 YTD
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