Honda North American Output Rises 67%, Leading Region

Honda Motor Co. has raised output at North American plants by the fastest pace of any carmaker in the region this year as the company pushes to reclaim U.S. market share lost to competitors and natural disasters in 2011.

Honda plants in the U.S., Canada and Mexico built 748,217 cars and light trucks in the year’s first five months, a record for the period and 67 percent more than a year earlier, according to the company. Toyota Motor Corp. (7203), Asia’s biggest automaker, followed with a 64 percent North American increase to 787,777 vehicles.

“We’ve been doing everything we can to make up for lost time,” Tom Lake, Honda’s head of North American purchasing, said last month in an interview in Raymond, Ohio.

Honda, the third-largest Japanese carmaker, and Toyota are targeting gains of 10 percent or more in U.S. sales this year after losing ground to Hyundai Motor Co. (005380) and Kia Motors Corp. (000270), both based in Seoul. Honda, Toyota and Nissan Motor Co. (7201) are also racing to limit exposure to a sustained rise in the yen against the dollar by shifting output and parts purchases from Japan.

The Japanese currency last traded at about 79.4 yen to the dollar, compared with 91.7 yen to the dollar two years ago and 122.7 yen five years ago.

“Long before the yen became as strong as it is today we’d identified plans for localizing certain specialized parts or materials we’re buying from Japan,” Lake said. “The shift in the exchange rate increased the urgency in getting that done.”

Record Pace

Nissan, tapping alternative supply sources through its alliance with Renault SA (RNO), was able to rebound faster from Japan’s earthquake and tsunami in 2011 and lost less production in North America from parts-supply issues.

Nissan, based in Yokohama, Japan, increased output at U.S. and Mexican plants by 23 percent this year to 562,971, said David Reuter, a company spokesman.

The high exchange rate means Japan’s automakers are also limiting export, Alec Gutierrez, Kelley Blue Book’s auto market analyst, said in a statement June 13.

“Although exports will be managed to limit losses, Japanese manufacturers will continue to do whatever is necessary to maintain share,” he said.

Production of cars and light trucks in North America by all manufacturers increased 22 percent through May to 6.57 million vehicles from 5.38 million a year earlier, according to trade magazine Automotive News.

Rising Production

Among the region’s largest automakers, General Motors Co. (GM)’s output is up 5.4 percent to 1.41 million through May; Ford Motor Co. (F)’s grew 4.4 percent to 1.15 million; and Chrysler Group LLC had a 23 percent increase to 1.02 million, according to company statements.

Japan’s three largest automakers are also producing vehicles in North America at a rate indicating each will set records this year.

Sustaining the current pace means Tokyo-based Honda will produce more than 1.7 million Honda and Acura brand autos in the region this year, topping its best-ever 1.43 million in 2007.

Honda’s U.S. market share slid to 9 percent last year from 10.6 percent in 2010, according to researcher Autodata Corp. Honda’s share is 9.6 percent this year through May, down from 9.9 percent a year earlier. Honda’s light-vehicle sales rose 10 percent during the first five months, trailing the industrywide 13 percent gain.

Toyota, which made an average of 157,555 vehicles each month this year, may produce more than 1.89 million, surpassing its previous record of 1.67 million in 2007. The company is based in Toyota City, Japan.

Nissan made 1.18 million in the U.S. and Mexico last year, its highest volume to date, and may make as many as 1.35 million at the current rate.

Honda’s U.S. headquarters are in Torrance, California. The stock fell 0.1 percent 2,544 yen in Tokyo yesterday.

Review: 2012 Honda Civic Si

Honda's sportiest and most fun-to-drive Civic, the 2012 Si, has freshened interior and exterior, more power than ever and higher fuel economy ratings than its predecessor.

In fact, the Si's new, 201-horsepower, naturally aspirated, 2.4-liter four cylinder is the same engine that's in the much-pricier 2012 Acura TSX and gives the 2012 Si new spirit, even if it's not turbocharged power.

The 2012 Civic Si also has new fuel economy ratings of 22 miles per gallon in city driving and 31 mpg on the highway from the federal government compared with 21/29 mpg for the 2011 Si.

This means the nimble handling Si has higher fuel economy ratings than the 20/28-mpg of the competing 2012 Mazdaspeed3 with 2.5-liter, turbocharged four cylinder.

Meantime, the Si's manufacturer's suggested retail price, including destination charge, of $23,145 for a base coupe is lower than the $24,765 for a 2012 Volkswagen GTI 2-Door that has a 200-horsepower, turbocharged four cylinder. The Si's base price also is lower than the $24,795 starting retail price of a 2012 Mazdaspeed3 with 263-horsepower, turbocharged four cylinder.

The sole transmission for the Civic Si models -- sold as coupe and sedan -- is a close-ratio six-speed manual that needs only a light touch to move smoothly through the gears.

The clutch pedal in the test Civic Si Coupe wasn't fussy, and the lack of an automatic transmission wasn't a drawback except during a lengthy traffic

backup when the car crawled along for miles and my left leg tired of pushing the clutch pedal.

The new Si engine is the largest displacement powerplant put in U.S.-market Si cars. The horsepower increase over last year's 197 might seem minor, but peak horsepower now comes at 7,000 rpm instead of 7,800 rpm so there's a bit less rev noise to get the full power.

More importantly, torque is up from last year's 139 foot-pounds at 6,900 rpm to 170 foot-pounds at 4,400 rpm. The availability of peak torque at lower rpm puts accelerative power in the range where more drivers -- enthusiasts or more mainstream types -- will get to use it.

The tester pulled itself along with zip in city traffic and could move with urgency -- and with loud engine revving sounds --when kept in low gears.

It didn't feel taxed even when scooting by a line of other cars, and at less than 2,900 pounds, the Si coupe didn't feel heavy. But neither did it feel tinny or too light amid bigger vehicles.

Note the Civic Si, like all Civics, comes with a lengthy list of safety features, including electronic stability control with traction control, antilock brakes, Brake Assist and six air bags.

The test car rode on 17-inch all-season tires, and there was a good amount of road noise that came through to passengers. The radio's volume was constantly being adjusted to account for noisy road surfaces and the sounds from nearby diesel semis.

The Civic Si test car's steering had a lighter feel than expected. But this was predominantly at city speeds. On highways and country roads, steering felt more secure.

The Civic Si front bucket seats provided comfortable support, and there's a generous 42.6 inches of front-seat legroom. The low dashboard aided visibility up front.

The back seat of the Si coupe, took some effort to get into and out of; legroom of 30.8 inches, while increased by a half inch from the previous model, is adequate only for children and the short of stature.

Trunk space in the Si Coupe measures 11.7 cubic feet, up from 11.5 cubic feet in the 2011 Si Coupe. But the hatchback style of a VW GTI helps make for 15.3 cubic feet of cargo space in that car.

The new Si exterior styling is a subtle blending and cleaning up of the previous model.

The interior drew mixed reviews. Some passengers felt there's too much hard plastic, with different textures, while others said it will be easy to clean.

Note the Si doesn't offer leather-trimmed seats, but the nice-looking cloth seats in the test coupe had the benefit of helping to keep driver and passengers in place during aggressive driving. There is, however, standard leather wrapped on the Si steering wheel.

Admittedly, the test car was driven spiritedly and averaged 22 mpg in city/highway travel. This is below the government's combined 25 mpg rating.

Note that Honda's specs state premium fuel is required for maximum performance, so a fill-up of the Si's 13.2-gallon tank these days can total more than $51.

Consumer Reports doesn't rate the Civic Si separately from other, more mainstream Civics. Overall, Civics rated above average in reliability.

Honda Civics have been the subject of two safety recalls during the 2012 model year. One was for a potential fuel leak, and the other was for a driveshaft problem that could potentially lead to a crash.

Auto Advice : How to Check Your Tire Tread Depth

Tire tread depth should be measured once a month to avoid the risk of flats and blowouts. Check your tread depth with the advice of an automotive expert in this free video.

2012 Honda Odyssey Road Test

The Honda Odyssey has always been a safe and comfortable minivan. For 2012 Honda gave its people mover a refresh with sharp new styling and a more fuel-efficient powertrain, but how does it stack up against the competition?

While the front and rear of the Odyssey remain conservative, the side profile is now aggressive. A controversial lightning bolt beltline is both unique, and helps with visibility for both the driver and the passengers. Inside the Odyssey features a nice swoopy dashboard with lots of interior space.

The front seats are supportive and road-trip-worthy, and there are plenty of storage cubbies. While the second-row seats don't fold flat, they are removable, though they are very heavy. The third row is called the "Magic Seat," and it does fold flat with a simple tug of a strap. Unfortunately the third row is not offered with a power-folding option. All Odysseys have power sliding side doors and rear liftgate.

Our Touring Elite model had the available 16.2-inch-wide, high-definition DVD entertainment system. The system also includes an HDMI input so you can watch HD videos off a PlayStation or other device. Other features we like include the unique cool box feature, which can keep the kids' juice boxes cool. With 15 cup holders on all but the base LX trim, you'll have plenty of juice boxes.

The Odyssey is one of the safest minivans, earning five stars in every crash test category from the NHTSA, and top ratings in every category from the IIHS. It also features six child seat tether locations, and five LATCH locations. We are disappointed that the Bluetooth hands-free system and rearview camera are not available on the base trim, as we consider these safety items.

All Odysseys have a 3.5-liter V-6 under the hood rated at 247 horsepower. Power is sent to the front wheels; all-wheel drive is not available. The Touring trim models receive a six-speed automatic while the LX and EX models make do with a five-speed automatic. With the six-speed the Odyssey is rated at 19 mpg in the city and 28 mpg on the highway. The LX and EX models both lose 1 mpg on both sides of the equation, due to their less efficient transmissions.

The bottom line? The 2012 Honda Odyssey is one of the priciest and safest minivans on the market, and one we rate at the top of the class.

 

Tracy Honda tire special!

Come into Tracy Honda today to take advantage of our tire special! Bring in this coupon with your car and when you buy new tires, you'll get a one year road hazard warranty, and free rotations and balances at service intervals. Don't put it off any longer! Come in today, visit us at http://TracyHonda.com or call 877-579-6712. See you soon!

Ford, Hyundai show largest increase in perceived quality, Honda tops

ALG reports both Ford and Hyundai have seen substantial jumps in their respective perceived quality, with the Blue Oval enjoying a 37 percent jump since 2008. Hyundai, meanwhile, has seen its figures increase by 25 percent over the same five years. For industry watchers, the news should offer no real shock. Both manufacturers have been on a new-product warpath, offering models laden with fresh design, efficient drivetrain options and plenty of technology while steadily increasing quality. The increase has been enough to push Ford to fourth on the list of brands with the highest perceived quality with a score of 70.5. That score puts Ford just behind Subaru with a score of 71.1.

Ford and Hyundai may have had strong showings, but Honda has snagged top honors among mainstream brands with an 81.3 perceived quality score, followed by Toyota with 80.1. Lexus walked away with the highest rank among luxury brands, followed by Mercedes-Benz and BMW. Cadillac, Lincoln and Jaguar, meanwhile, all fell below the luxury average of 71.2 points.

ALG's Perceived Quality Study surveys more than 3,000 U.S. consumers on a semi-annual basis. Check out the full press release for yourself by scrolling down.

 

Ford, Hyundai Show Long-Term Improvement in Perceived Quality

Honda, Lexus take top spot in ALG's annual measurement of perceived quality among consumers; Toyota's reputation continues to rebound

SANTA BARBARA, Calif. – Ford and Hyundai have had the highest level of improvement in perception of quality among all automakers during the last 5 years according to ALG, the industry benchmark for vehicle values. Since 2008, Ford's perception of quality has improved nearly 37%, while Hyundai's perception of quality has increased by 25% during that time period. The release of ALG's 2012 Perceived Quality Study (PQS) shows Ford ranking fourth, with Hyundai above the mainstream average.

Honda ranks highest among mainstream brands with a perceived quality score of 81.3, followed closely by Toyota, whose perception of quality continues to recover from its drop in 2010. Toyota showed the largest year-over-year perception improvement of any brand. Honda and Toyota continue to be the perception of quality standard bearers among mainstream brands, with Subaru ranking third.

Among luxury brands, Lexus is highest ranked for the second consecutive year, with a perceived quality score of 85.4. Three European brands – Mercedes-Benz, BMW and Porsche round out the top four.

"Changing the perception of quality is a long-term proposition," said Eric Lyman, ALG's Vice President of Residual Value Solutions. "Consumers recognize the product improvements made by Ford and Hyundai. Honda and Toyota are still widely recognized as being the quality leaders, but as more consumers increasingly consider brands like Subaru, Ford and Hyundai, that perception gap erodes."

Other brands showing significant year-over-year improvement include Fiat, Scion, Dodge and Kia.

"Kia and Dodge are great examples of perception improvement based on product and marketing," said Lyman. "Both brands have launched exciting new product and impactful messaging. While they both face significant history to overcome, consumers are beginning to recognize their improvement."

Now in its fifth year, ALG's Perceived Quality Study is a semi-annual consumer survey measuring the perceived quality of automotive brands. PQS reports the opinions of more than 3,000 U.S. consumers in order to gauge perceptions of mainstream and luxury brands. PQS is one of the metrics ALG examines in calculating our industry benchmark residual values, helping companies and consumers understand the future value of their vehicles.

Honda Certified Used Cars Interactive Tour

Honda Certified Used Cars take the guesswork—and the footwork—out of car shopping. Check out an interactive tour about benefits of buying Certified and be sure to check out the Honda Certified Used Car website: http://automobiles.honda.com/certified-used/ to view current offers and vehicles available at your local dealership.

Honda Fit EV gets 118 mpg equivalent US EPA rating

Among the handful of electric cars either in production for coming out this year, Honda can now boast the best fuel economy. The EPA rating for its Fit EV shows the car earning 118 MPG equivalent, beating the next runner-up Mitsubishi i-Miev's 112 MPGe and the Nissan Leaf's 99 MPGe.

The numbers break down to 132 MPGe city, 105 MPGe highway, with the 118 MPGe number being the combined rating.

At the same time, Honda also gets to claim an EPA-rated range of 82 miles on a single charge, better than the Leaf and i-Miev. However, the Tesla Model S, coming out this summer, should achieve greater range, as its base model boasts twice the battery capacity of the Fit EV.

MPG equivalent is a bit of an odd number, a fuel economy equivalent calculation between gasoline and electricity. Because of the very different nature of filling a gas tank versus charging a battery, car owners may not immediately grasp the difference. When it comes to running costs, however, owners will see a huge delta, not only due to the better efficiency of the electric cars but also due to electricity rates that are typically lower than equivalent per gallon gas prices. The EPA's annual fuel cost for the Fit EV is just $500.

Honda showed off the production Fit EV at the 2011 Los Angeles Auto Show, and will begin a leasing program with the car in California and Oregon this summer. Some East Coast markets will see the car in January 2013.

The Fit EV uses the same basic body as the gasoline-powered Fit, including the versatile interior. Instead of its gas engine, it uses a 92 kilowatt motor to drive the front wheels, with a 20 kilowatt-hour lithium-ion battery pack to store electricity. Honda says the Fit EV's battery can be charged up in 3 hours from a 240 volt outlet.