Honda, Acura, Automotive trends, Auto industry trends, Automotive market research, Automotive market analysis, auto industry news

Honda is a Japanese OEM that sells motorbikes, cars and light commercial vehicles (plus a host of other products, including jets) under the Honda and Acura brands. This page contains research on Honda's activities and strategy.

Automotive trends, Auto industry trends, Automotive market research, Automotive market analysis, auto industry news

2018

July

  • Intends to resume vehicle and engine production at a Mexican plant hit by flooding in mid-November, having recently restarted transmissions manufacturing at the site. Production of Insight vehicles in the US have been suspended in August as the Mexican plant cannot supply key componentry and stocks have been exhausted. (Honda)
  • Honda and Panasonic are planning a trial involving battery swapping for motorcycles. There will be several sites with chargers where customers can drop off depleted battery packs and put in a fully charged one. (Business Leader)
  • Stopped production of the Fit and HR-V in Celaya, Mexico until the end of July, due to flooding. (Honda)

Q2 2018 (Fiscal Year Q1) Financial Results

  • Reported financial results for the first quarter of its 2018-2019 financial year. Revenue of 4 trillion yen (about $36 billion) was up 8.4% on a year-over-year basis, whilst operating profit of 300 billion yen (about $2.7 billion) was up 11.2% YoY. (Honda)
  • Produced 2,681,341 vehicles globally in the first half of 2018, a 3.7% increased on a year-over-year basis. (Honda)

June

  • Estimated that imposition of customs controls after Brexit would increase time for parts to pass through customs by between two and nine days. Honda says it currently keeps 36 hours of stock on hand and if there were delays of nine days it would need 300,000 square metres of warehousing. (CNBC)
  • GM and Honda agreed to collaborate on next generation batteries. The partners will use GM’s battery chemistry as the basis for the collaboration and the intent is for GM to supply Honda with battery packs. (Honda)
  • Honda’s UK sales head said it would take three years to win back customers after dropping diesel from the CR-V line-up. The longer term sales objective is 50/50 petrol and hybrid. (Autocar)

May

  • Reportedly discussing production volumes of 100,000 units per year for an electric car battery supply contract with CATL -- the undisclosed program bears all the hallmarks of the Honda Urban EV concept. (Electrek)

April

  • Launched a China-market EV brand with JV partner GAC, called Everus. (Autocar)
  • Reportedly idling US production of the Accord due to slow sales. (Auto Evolution)
  • Waymo’s CEO said talks with Honda were likely to yield a collaboration focused on delivery vehicles. (Bloomberg)

Q1 2018 (Full Financial Year 2017/18) Results

  • Released the results for the 2017/18 financial year. Revenue of 14 trillion yen (about $128 billion) was up 9% on a year earlier but profits were down -- Honda explained this as a series of one-times: exchange; pension accounting and legal expenses. (Honda)

March

  • Honda’s UK chief said he expects electric vehicle pricing will start to converge with combustion engine levels in 2 to 3 years. (Autocar)
  • Chinese JV Dongfeng Honda has halted production of some models as it argues with customers and officials about whether there are any fundamental design and reliability problems with 1.5 litre petrol engines. (China Daily)
  • Announced the new CR-V, which will feature a hybrid engine rather than offer a diesel version. (Honda)

February

  • Announced a series of management changes. (Honda)

January

  • Joined the European manufacturers trade body, ACEA. (ACEA)
  • Honda and AutoNavi will work to create a new payment service for connected cars in China. They will use Alipay (owned by AutoNavi parent Alibaba). (Business Insider)
  • Will undergo a slight re-arrangement of its Chinese JVs as GAC Honda takes over Honda China. The move will leave GAC Honda and Dongfeng Honda as the company’s partners in the country. (China Daily)

2017

December

  • Invested about $9 million in Chinese car-sharing platform Reachda. (Caixin)
  • Signed a collaboration agreement with SenseTime to work on artificial intelligence applications for autonomous vehicles. Honda is particularly interested in improvements to image recognition. (Honda)

November

  • Demonstrated the use of augmented reality to show new features of a vehicle and even allow the occupants to simulate driving in it. (Honda)
  • Issued a recall for about 900,000 minivans (almost all in North America) to fix problems with second row seat latches not engaging correctly. (Reuters)
  • Announced a cooperation with SoftBank to research applications for 5G connectivity in vehicles. (Honda)
  • Will expand the Honda Xceletrator program to work with start-ups in more locations. (Autocar)
  • Said that it would be unable to afford a 10% tariff on UK-built cars if post-Brexit trading conditions used WTO tariffs. (Reuters)
  • Working on a new battery technology ahead of a car launching in 2022 with a 15-minute charging time. (Nikkei)

Q3 Earnings

  • Announced Financial results for Q3 2017 / Fiscal Q2. Revenue of 3,776 billion yen was up 15.7% on a year-over-year basis but profit was down (33)% YoY. Honda revised its year-end guidance upwards. (Honda)
  • Announced July production results. Global production of 397,138 units was up 6.6% on a year-over-year basis. (Honda)

October

  • Honda’s CEO said that the company thought zero emission vehicles were probably not well-suited to the US market. (Reuters)
  • Unveiled a series of concept vehicles in Tokyo including a small all-electric sports car and several electric mobility vehicles ranging from a wheelchair to a convertible minibus/lounge. (Honda)
  • Said that Kobe Steel had falsified tests on aluminium Honda uses for doors and other closures but that the material still passed Honda’ own tests and was therefore not a safety risk. Honda is still checking whether any parts used by its suppliers are affected. (Honda)
  • Announced changes to its manufacturing operations in Japan, citing weak domestic demand as a cause of overcapacity. Honda’s plant in Yorii will become a centre of excellence and absorb the activities of the Sayama plant (with employees either transferring or leaving) by the end of Q1 2022. Honda is also in talks to take over the automotive activities of Yachiyo (which makes Kei cars and small trucks for Honda). (Honda)

September

  • Will unveil a Sports EV concept at the Tokyo show on 25th October -- the 2nd electric vehicle in as many months. The pre-show press release suggests a MX-5 fighter / S2000 replacement. (Honda)
  • Showed a compact EV concept at the Frankfurt show and said that a production version would be on sale in Europe by 2019. Honda said that it will offer an electrified version of all models launched in Europe from now on and that by 2025 it expects two thirds of its European sales to be electrified vehicles. By 2030, it expects to reach the same percentage globally. (Honda)
  • Said that the previously announced all-electric, China-only, vehicle it is planning for introduction in 2018 will be sold under the brands of both its joint ventures (with GAC and Dongfeng). Honda also said that it will “proactively” explore car sharing opportunities in China. (Honda)

August

  • Said that at the Frankfurt motor show it will release details on the next steps of its plan to produce more electrified vehicles (for Honda, this includes Hybrids) for Europe. (Honda)
  • Unveiled a new type of blanking die for steel stampings that reduces scrap steel. Honda overcame problems with bed size limitations in order to install alternating blanking even on bodyside-size panels. (Honda)

July

  • Will recall about 1.2 million vehicles to repair battery sensor problems that can lead to fires. (should have been reported last week). (More…)
  • Announced that has formed a joint venture with Hitachi (49% Honda/51% Hitachi) to develop and manufacture electric vehicle motors. This follows months of detailed discussions after agreeing an MoU earlier this year. (..)

Q2 Earnings

  • Reported financial results for Q2 2017 (1Q of Honda’s financial year). Revenue of 3.7 trillion yen was up 7% on a year-over-year basis. PBT of 335 billion yen was up 16% YoY. These results led to Honda increasing its full year forecast. (Honda)
  • Reported US sales results for June. Total sales of 139,793 vehicles represented an increase of 0.8% on a year-over-year basis. Improvements at the Acura brand more than offset a slight decline in sales of Honda branded vehicles. (More…)
  • Saw a fall in April US sales of 7% year-over-year. (..)

June

  • JV Honda Dongfeng will recruit an additional 2,200 people in China to increase production. (..)
  • Said that its factory in Sayama, Japan would have to close due to an infection of the WannaCry virus. (..)
  • Said that it was targeting introduction of Level 4 automated driving capability by 2025. (..)

May

  • Announced that it had installed “Europe’s most advanced public electric” vehicle charging station at its German R&D headquarters. The system can charge four vehicles at up to 150kW (memo: Tesla at about 135kW, VW/BMW/Daimler/Ford consortium claims 350kW in future). Honda will add hydrogen filling to the same site later. (..)
  • Will be part of an 11-company consortium that aims to accelerate roll-out of hydrogen stations in Japan, targeting 160 stations and 40,000 fuel cell vehicles by 2020. (More…)

April

  • Saw the existing Honda Silicon Valley Lab re-branded as Honda R&D Innovations, saying that the site was taking on a global role to drive collaboration between Honda and 3rd party innovators. (..)

Q1 Earnings

  • Forecast that operating profits would fall in the current financial year by around 16% citing a stronger yen, pension plan and R&D costs. Honda expects sales volumes to rise. (..)

March

  • Announced investment of $85m in its Lincoln Alabama (USA) plant to increase plant flexibility. The plant makes vehicles and engines and employs around 4,500 people with a total capacity of about 340,000 vehicles per year.
  • Honda is researching in-road charging. Their claimed potential performance -- a 180kw charging rate at speeds of almost 100mph -- is substantially beyond prior schemes.