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Honda debuted the 2020 Honda CR-V today with a lightly refreshed exterior, but with a big announcement under the hood. This is the first time Honda will be offering the CR-V with a Hybrid Powertrain. There are some other powertrain changes as well. Starting with the Hybrid, the system is a two motor hybrid that combines electric power with gasoline propulsion from a 2.0 liter DOHC engine. This engine boasts a thermal efficiency over 40 percent, the highest of any mass-produced Honda engine. Peak total system horsepower for the Hybrid is now 212, up from 190 on the standard gasoline model. This is the same powertrain found in the Accord Hybrid. It is also the first time Honda has offered AWD on a hybrid vehicle. In times of low traction, a clutch can engage an electric motor to the rear wheels to help with grip. Hybrid models are equipped with Acoustic Vehicle Alerting System, a small speaker on the front of the car that makes a noise for passers by while the vehicle is traveling in electric only mode. Previously, base model CR-V LXes got a 2.4-liter 4-cylinder. Now for 2020, all non-hybrid CR-Vs will come with the 190 hp 1.5-liter turbo unit. No matter which mode of power you choose, power flows to the wheels through a CVT. On the safety front, the CR-V now comes standard with Honda Sensing, a suite of sweet safety technologies that include Collision Mitigation Braking System, Road Departure Mitigation, Adaptive Cruise Control, and Lane Keep Assist. Additionally, as an option, are blind spot information, rear cross traffic monitor, and auto high beam headlights. EPA figures will be released closer to launch, but Honda is forecasting a 50% increase in fuel economy over the non-hybrid models. Non-hybrid production begins this fall and hybrid production starts in early 2020. View full article

Ahead of its official debut at the Frankfurt Motor Show, Honda has unveiled the full specs of their Honda E small electric car. Honda developed the E with a focus on design simplicity and usability for the needs of modern urban lifestyles. The clean external lines are helped by the use of exterior cameras replacing the traditional side mirrors. The mirrorless design allows for better aerodynamics. The interior has a full width digital dashboard with dual 12.3 inch LCD touch screens for infotainment and driver information. Owners are able to access the car via a digital key on a smartphone app. The app can also report on things like battery charge control, range monitor, and navigation search results can be sent from the phone to the vehicle or have control of remote climate control. The Honda e makes use of contextual speech recognition to use natural language to provide access to a range of online services. Occupants can activate the system by saying "Okay Honda" The power for the Honda E comes from a choice of two motors driving the rear wheels with either 134 horsepower or 151 horsepower. Torque comes in at 232 lb-ft. The 35.5 kWh battery is among the smallest in its class but still offers a range of about 137 miles. The e can recharge up to 80-percent of its battery in 30 minutes. The 0-62 mph run takes about 8 seconds. Pricing has yet to be announced, but interested buyers in UK, Germany, France, and Norway and reserve their car online. The car remains Forbidden Fruit for the US. View full article

Honda is continuing its global pull back of production by announcing it will cease automotive manufacturing operations in Argentina next year. This is after announcing the closure of its Swindon UK plant and the pull back of production in the U.S., mainly of the Civic and Accord. Honda is in the midst of consolidating production to fewer facilities and using fewer platforms to produce their vehicles. Honda said it's plant in Campana, which produces the HR-V will focus solely on manufacturing motorcycles. Honda is in talks with the local union to potentially offer buyouts to those who will be affected by the cessation of automotive production. The total plant population is over 1,000 workers. Honda has been building motorcycles in Argentina since 2006 and automobiles since 2011. View full article

The minivan is not quite dead yet and the Honda Odyssey, one of the five remaining minivans still in production, is entering its 25th year on the market. Since its launch in 1995, the Odyssey has sold more than 2.7 million units. Honda is quick to point out that most of these are retail sales and not fleet. The Odyssey has been the number one retail seller in the segment for 9 years running. For 2020, all Odysseys will be upgraded to a new 10-speed automatic transmission. This is mated to the existing 280 horsepower 3.5 liter V6 driving the front wheels. Also for 2020, Honda is offering a $1500 25th Anniversary package that includes a chrome roof rack, body side moldings, chrome rear bumper protector, extra 25th Anniversary badges, illuminated sill plates, and for an additional $1,300, special 19-inch wheels. The Honda Odyssey is built in Honda's Lincoln Alabama manufacturing plant alongside the Pilot, Passport, and Ridgeline. View full article

Honda is cutting back on production at two of its U.S. plants in anticipation of a slide in sales. The Marysville, Ohio plant and Honda of Indiana are the two plants being affected. The cuts primarily come to the Accord and Civic built in Marysville. Marysville operates two lines and one shift at Marysville on Line 1 will be suspended temporarily. That line produces the Accord, CR-V, ILX, and TLX, but the cuts there will mostly impact Accord. Acura production is unchanged at this time. The CR-V is also produced in Indiana so some production can be shifted from Marysville to there. This news comes after the announcement of the closure of Honda's Swindon UK manufacturing plant which builds the CR-V for Europe and the Honda Civic Hatchback and Civic Type-R for the U.S. Honda sales are down 0.9% for the year, but the Accord has slipped 5.9% July YTD, and the Civic which is Honda's second most popular model has slipped 2.1% July YTD. CR-V, which is Honda's biggest seller is also down 0.9%, but a light refresh is in the works for the CR-V and should debut soon. Honda says these adjustments are to help maintain Honda's sales discipline and to flex to the shift in market demand away from sedans. Honda has already announced they are looking to trim fat from their model lineup and have fewer regionally specific models. They will also be reducing the number of variations available to one third of what they are today. These plans are to be completed by 2025. View full article

For 2019, the most well equipped Honda Pilot you could buy was the Elite trim. That level of Pilot brought on extra trimmings like panoramic roof, standard All-Wheel drive with variable torque management, heated and ventilated front seats, heated steering wheel, heated 2nd row, and other trappings. For 2020, Honda is building on that trim and elevating it higher with the Black Edition. Based on the Elite trim, the Black Edition comes exclusively in Crystal Black Pearl Paint, black painted 20-inch alloy wheels, and blackout treatments that remove the exterior chrome trim. Inside, there is a red accent to the perforated front and second row seating surfaces along with red accent stitching. The Black Edition trim starts at $49,620, a $1500 increase over an equivalent Elite trim. After a destination charge of $1,095, you'll be paying over $50k for a Pilot. That's pricey, but a Chevrolet Traverse High Country will run you $54k and a Ford Explorer Platinum will easily touch $60k. The most direct price competitors would be the new Kia Telluride and Hyundai Palisade, which come in a couple thousand less than the Honda Pilot Black Edition. In addition to the new trim, the price of the Pilot goes up by $100 for front-wheel drive trims and $200 for all-wheel drive trims. The 2020 Pilot begins arriving in dealerships today. View full article

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) View full article

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. One of the initiatives put forth by Hachigo was to cut down on the number of variations on offer in their global lineup, along with the dropping of various regional nameplates. "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. Strengthening inter-regional coordination and collaboration 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. Advancement of our art of making automobiles (automobile development) As for the advancement of automobile development, since I became the president, we have been increasing the efficiency and speed of our Monozukuri (the art of making things) by innovating the entire process, from planning and development all the way through production, by enabling the S-E-D-B (sales, manufacturing, R&D, purchasing*1) functions to collaborate beyond the boundaries of their divisions. 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. With the strengthening of global and regional models through inter-regional coordination and collaboration and with the introduction of the Honda Architecture, by 2025, we will reduce the number of manhours we use for the development of mass-production models by 30%, and we will repurpose those manhours to accelerate our research and development in advanced areas for the future. In this way, we can continue creating new technologies which will support the future of Honda. Strengthening our operational structure in the area of production 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) View full article

American Honda Announces April Sales Results May 1, 2019 Civic continues to lead U.S. passenger car sales, driven by strong retail performance Honda truck sales rise 2.7% in April as Passport adds strength and CR-V and Pilot maintain momentum Acura trucks also gain, with RDX surging 17.3% on the way to an overall increase of 6.2% for the month American Honda Total 125,775 +0.1% Cars 57,452 -3.4% Trucks 68,323 +3.1% Total 114,088 +0.2% Cars 54,030 -2.4% Trucks 60.058 +2.7% Total 11,687 -1.7% Cars 3,433 -16.6% Trucks 8,265 +6.2%

Acura Sales Climb 11% as American Honda Posts Strong February Results Mar 1, 2019 Acura brand trucks set new February mark as RDX also gets record and MDX rises in double digits Honda HR-V sets February sales record, its best month since a June 2018 flood strapped supplies Honda Accord sales rise 2.5% in tight sedan market Honda CR-V gains 1.7%, surpassing 26,000 sales American Honda Total 115,139 -0.4% Cars 51,262 -6% Trucks 63,877 +4.6% Total 102,926 -1.6% Cars 47,847 -5.5% Trucks 55,079 +2.1% Total 12,213 +11.3% Cars 3,415 -11.7% Trucks 8,798 +23.9% "We're off to a good start in 2019 with notable gains for both cars and light trucks, bolstered by the arrival of our all-new Passport SUV," said Henio Arcangeli Jr., senior vice president of the American Honda Automobile Division. "Our terrific product lineup is helping grow sales in all key segments of our business and we are achieving this success by maintaining a disciplined approach to supply and incentive spending." BRAND REPORT Sales Highlights Honda maintained a strong sales pace in February, with core models Accord and CR-V posting gains and HR-V setting a record, while the brand-new Passport SUV had its first full month of sales. Despite on-going sedan market headwinds, Accord gained 2.5% on sales of 20,254 units, continuing its retail sales leadership in the midsize segment. HR-V sales rose 4.4% in February on sales of 7,093 units, a new February record and its best month since the full impact of a flood that stopped production for four months last year. CR-V gained 1.7% in February, cresting 26,000 units for the month, while Pilot posted a strong month with sales of nearly 11,000 units. Sales of electrified models (over 4,500 units) remained strong with Insight topping 1,500 units to lead industry sales for dedicated hybrid models. Model Notes Honda began 2019 as the retail #1 passenger car brand in America, with Accord the retail best-selling midsize sedan for the 4th straight month and Civic entering its 4th year as America's retail best-selling car. CR-V continues as the retail #1 CUV in America, while approaching nearly a 20% share in segment. BRAND REPORT Sales Highlights Acura continued to gain traction as sales climbed more than 11% for the month. Acura trucks, up 24%, set a new February record. Sedans remained strong as ILX and TLX continue to outperform their segments in retail sales. RDX sales jumped 31.8% in February on sales of 4,965 units, a February record and the 9th consecutive month of record sales. MDX had a robust month, gaining 14.9% on sales of 3,833 units. ILX sales were up 15.8%, despite inventory issues related to the ramp-up of the refreshed 2019 model. Model Notes Coming off its best year ever, the new RDX has continued as the #1 retail-seller in segment, the #2 retail-selling luxury SUV and the #3 model in all of luxury. Acura began 2019 with retail sales up 10% while key competitors experienced declines.

Last week we reported that Honda would be closing their UK manufacturing plant in Swindon. That plant produces Honda Civics and CR-Vs mostly for the European market. However, in addition to European production, the Swindon plant also produces the Civic Hatchback and Civic Type-R for North America. Production in Swindon is to finish out the model run into 2021. Automotive News reports that Honda CEO Takahir Hachigo said "Given out efforts to optimize production allocation and production capacity on a global scale, we have concluded that we will produce the Civic for North America in North America." The North American sourced Honda Civic is built in Alliston, Ontario and Greensburgh Indiana. The Honda Civic hatchback makes up about one third of Civic's 325,760 US sales for 2018. View full article