Honda makes a big play for US drivers
The company is growing here, but at a steep price. Spending on discounts and other incentives hit $2,206 per vehicle last year.
Honda Motor (HMC), which Thursday slashed its yearly profit outlook, has big plans for the U.S. market. It has little choice.Like all automakers, Honda's facing a recession in Europe and a slowdown in China. (For a closer look at the company's earnings numbers, click here.) The U.S. was a bright spot, as rising sales of the Accord sedan, the CR-V sport utility vehicle and higher-end Acura RDX pushed revenue in North America up 26% to $13.67 billion in the fiscal third quarter. Its U.S. market share grew to 9.8% in 2012 from 9% in 2011, according to the Wall Street Journal.
American Honda said its sales last year rose 24% to 1.42 million vehicles in the U.S., the fourth highest total in its history. December sales were the company's second-best ever. The automaker hopes to do even better in 2013. About 40% of the company's worldwide sales come from the United States.
Honda's growth, however, came at a steep price. The company's spending on incentives climbed to $2,206 per vehicle in 2012, according to data from Autodata cited by the Journal. Executives are prepared to offer even more deals to boost sales in 2013.
Shareholders are always leery of companies offering more discounts to move product, and Honda is no exception. U.S. shares of the automaker were trading down in early trading. They have jumped nearly 11% over the past year.
Automakers often brag in their ads that they are offering the "deal of a lifetime." In Honda's case, it may not be hyperbole.
Check out this video review of the Honda 2013 Civic EX, which is in a deeply competitive market right now.
--Jonathan Berr will drive his 2003 Honda Element until the bolts fall off. He doesn't own shares of the listed stocks.
More on moneyNOW
| Tags: | Autos |
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
RECENT POSTS
While incompetent bosses like Michael Scott and Andy Bernard typically can’t survive in the workplace, office romances are a very real part of corporate culture.
- Southwest Airlines turns less legroom into $773M
- 'American Idol' gets sorry ratings for season finale
- Powerball's wacky sense of humor
- Millions of Facebook's users are actually pets
- Can crowd funding rescue the LA Times?
- Domino's debuts a DVD that smells like pizza
- Average US retirement age climbs to 61
- McDonald's aims to slim down its 145-item menu
- Bathroom reading goes digital with iPad TP stand
MARKET UPDATE
[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.
The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More
More Market News
TOP STOCKS
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
MSN MONEY'S
- Shared
- Commented
- Viewed
