The 2012 CR-V will be critical to Honda's recovery.
Honda believes it is in a strong position to win back the market share it was forced to surrender this year as it adjusted production to cope with earthquakes and flooding.
The good news for the Japanese maker is that the major disruptions are finally behind it and with production and dealer inventories already on the rise, Honda is already regaining momentum, though it sees the big opportunity to rebuild sales coming in 2012, Tetsuo Iwamura, president and CEO of American Honda told reporters during an appearance in Detroit.
However, Imaura tempered his predictions of healthy gains next year with an acknowledgement Honda seriously underperformed in 2012, racking up a long string of monthly sales decline. “It will be really low bar,” Imaura noted.
Honda has lost 1.5 points of market share to Korean and American rivals this year, and while production problems were clearly an issue, industry analysts also note the maker has had a string of product problems, models like the new Insight, CR-Z and CrossTour failing to generate the consumer interest the maker expected. Even more troubling has been the harsh criticism the 2012 Honda Civic re-make received from reviewers.
Civic was knocked off its traditional perch as the top-selling compact in the U.S. by the upstart Chevrolet Cruze.
Things haven’t been much better for Honda’s luxury brand. Acura sales dropped 6.7% during the first 11 months of 2011 while key competitors, such as Audi, BMW, Mercedes-Benz and Cadillac, have all posted sales increases and some analysts suspect Acura has fallen off the consideration list of most luxury buyers.
With sales slumping, both Honda and Acura have had to raise incentives significantly to hold on to buyers. Only a year ago, Honda executives would routinely dismissed the idea they would have use incentives to entice potential customers into their showrooms.
John Mendel, American Honda executive vice president of sales, said there are clear signs Honda’s comeback is already in the works.
Certainly the competition, particularly from the American and South Korean companies, has gotten tougher in key segments, acknowledged Mendel, adding that with production back on track, the Civic could surpass Chevy’s Cruze in sales during December.
Honda expects its strong record and reputation for quality and reliability will prove instrumental with consumers, Mendel added, dismissing suggestions the Japanese automaker has gotten stale.
Honda is still a leader in fuel economy, he noted, and as TheDetroitBureau.com recently reported from Tokyo the maker is aiming to maintain leadership in all key segments with an array of new gas, diesel and hybrid powertrains it plans to bring to market over the next several years.
New products for both Honda and Acura will also help boost the company’s recovery Iwamura said. For example, Honda recently launched the new Honda CR-V, a finalist for 2012 North American Truck of the Year, and the new Honda Accord, traditionally one of the popular mid-sized sedans, will reach showrooms during 2012.
A “concept” version of the Accord is scheduled to make its debut next month at the North American International Auto Show. The show car is expected to be a thinly disguised version of the production car now in final development.