Will Honda’s Production Cuts Last Three More Months?

By Jonathan Welsh

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Honda factories like this one in Greensburg, Ind., could be affected for some time by parts shortages.

Reduced production levels at Honda Motor Co.’s North American auto plants could continue for another three months, according to a report in an industry trade publication.

The car maker declined to comment on an Automotive News story that quoted John Mendel, executive vice president with the company’s American Honda Motor unit, as saying expects parts shortages to have an impact on Honda’s North American plants for “60 to 90 days … that’s my working number for now.”

A Honda spokesman at the company’s Torrance, Calif., U.S. headquarters said Honda will have more to say by tomorrow morning and is currently sorting out the reports. Apparently Mendel was on the road in Washington, D.C. in connection with a press event for Honda’s new Civic compact car when he made the comments during an interview.

The Civic, a perennial big seller for Honda in the States, is among the cars built here that could wind up in short supply if production cuts last much longer. This could be especially damaging to Honda’s sales if fuel prices rise well over $4 per gallon, as many expect, when the summer driving season gets going.

The fuel-thrifty Civic has long been a popular choice for people trading in gas guzzlers for more efficient vehicles. If shortages now keep them from being available in June or July, many of those buyers will turn to other brands. Rival car makers including Ford Motor Co. and General Motors Co. have ramped up their fuel-efficient offerings in the last two years in part to take advantage of a situation like this.

Last week Honda said it would reduce production at its plants in the U.S. and Canada because of shortages of parts from Japan following the earthquake and tsunami there.

The spokesman said that “despite a news report, Honda has not changed its production plans. This remains a fluid situation and any specific dates are speculation and not an official revised forecast from Honda.”

While more than 80% of Honda and Acura vehicles sold in the U.S. are built in North America, mostly from North American parts, the production cuts confirm that the absence of even one component can stop an assembly line.

The following is a list of Honda’s North American plants and the vehicles they build:

Marysville, Ohio: Honda Accord, Honda Accord Coupe, Acura TL, Acura RDX.

East Liberty, Ohio: Honda CR-V, Honda Element, Honda Accord Crosstour.

Greensburg, Ind.: Honda Civic Sedan, Honda Civic GX natural gas.

Lincoln, Alabama: Honda Odyssey, Honda Pilot, Honda Ridgeline.

Alliston, Ontario: Honda Civic (Sedan, Coupe, Si) Acura MDX, Acura ZDX, Acura CSX (The CSX is sold only in Canada).

El Salto, Mexico: Honda CR-V.

The company builds the Honda Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL in Japan for the North American market. Honda also makes a small percentage of CR-Vs in Japan for sale in the U.S.

Honda Aims to Recoup Lost Japan Auto Production to Hit U.S. Sales Target

Honda Motor Co. is sticking to its sales plan for the U.S., where the carmaker earns most of its profit, as the company aims to make up for lost output after Japan’s record earthquake disrupted production worldwide.

Honda expects U.S. customers to buy 1.35 million Honda and Acura-brand cars and light trucks this year, maintaining a target set at the start of the year, said John Mendel, the company’s U.S. executive vice president. That’s 9.8 percent more than the 1.23 million autos Tokyo-based Honda sold in 2010.

“I’m counting on the fact that we would be able to make up the majority of any losses we have in the near term in the second half of the year,” Mendel said in an interview yesterday in Landover, Maryland. “Obviously, it’s going to change if somebody says, ‘You’re going to go four months without any production,’ but right now I’m holding to that.”

While Honda, Toyota Motor Corp. (7203) and Nissan Motor Co. had only minor damage at car factories in Japan from the 9-magnitude quake and tsunami on March 11, they all temporarily adjusted production at plants in North America as supplies of some Japan- made parts shrink. Last week, Honda began reducing shifts at North American auto and engine plants, which supply more than 80 percent of the autos it sells in the U.S.

In Japan, Honda’s two auto-assembly plants are scheduled to reopen on April 11 after a monthlong shutdown.

Inventory

Honda, ranked fourth in U.S. sales, has about a 40-day supply of vehicles at dealers in the country and another 80 days’ worth scheduled for delivery into May, Mendel said.

“We’ve got pretty fair inventory right now,” he said.

Still, the sales pace at dealerships may begin falling after another month if inventory levels don’t appear likely to be replenished in a reasonable amount of time, he said.

“The dealers will start to slow down the throughput as they see they have less and less vehicles to sell,” he said.

Honda will also review its sales incentives and make adjustments after mid-April, when most of its current loan and lease offers expire, he said.

Shares in Honda fell 1.4 percent to 2,886 yen as of 9:05 a.m. in Tokyo. The stock has lost 11 percent this year.

The company’s U.S. unit is based in Torrance, California.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net

Honda Red Cross Donation Site Open for Customers, Suppliers and Others

Friends of Honda may donate to Japan recovery effort through special link

American Honda Motor Co., Inc., has established a special website to channel donations to the American Red Cross from customers, suppliers and others interested in supporting the Japan disaster recovery effort through the Red Cross. Originally established to accept donations from Honda and Acura automobile dealers, and Honda motorcycle and power equipment dealers, Honda has opened the site to the public who may wish to donate at: http://american.redcross.org/hondaacura-emp

"We are making this special website available for contributions based on the outpouring of support and messages of sympathy and concern we have received from so many friends of Honda," said Stephan Morikawa, Assistant Vice President of Corporate Community Relations at American Honda. "We are humbled and deeply appreciative of the concern shown for our Japanese associates, their families, and all those affected by the March 11 earthquake and tsunami."

Last week Honda Motor Co., Ltd., in Japan announced that it will provide $3.7 million toward the relief and recovery effort, along with 1,000 generators. The Honda family of companies in North America has announced that it will match its associates' personal donations to the Red Cross relief and recovery effort on a dollar-for-dollar-basis.

Honda has been in close communication with the Red Cross regarding its need for material and equipment. The company has supported the Red Cross in previous disaster relief efforts through cash, product, and in-kind donations.

The American Red Cross name and emblem are used with its permission, which in no way constitutes an endorsement, express or implied, of any product, service, company, opinion or political position. For more information about the Red Cross, please visit www.redcross.org.

Honda Red Cross Donation Site Open for Customers, Suppliers and Others

Friends of Honda may donate to Japan recovery effort through special link

American Honda Motor Co., Inc., has established a special website to channel donations to the American Red Cross from customers, suppliers and others interested in supporting the Japan disaster recovery effort through the Red Cross. Originally established to accept donations from Honda and Acura automobile dealers, and Honda motorcycle and power equipment dealers, Honda has opened the site to the public who may wish to donate at: http://american.redcross.org/hondaacura-emp

"We are making this special website available for contributions based on the outpouring of support and messages of sympathy and concern we have received from so many friends of Honda," said Stephan Morikawa, Assistant Vice President of Corporate Community Relations at American Honda. "We are humbled and deeply appreciative of the concern shown for our Japanese associates, their families, and all those affected by the March 11 earthquake and tsunami."

Last week Honda Motor Co., Ltd., in Japan announced that it will provide $3.7 million toward the relief and recovery effort, along with 1,000 generators. The Honda family of companies in North America has announced that it will match its associates' personal donations to the Red Cross relief and recovery effort on a dollar-for-dollar-basis.

Honda has been in close communication with the Red Cross regarding its need for material and equipment. The company has supported the Red Cross in previous disaster relief efforts through cash, product, and in-kind donations.

The American Red Cross name and emblem are used with its permission, which in no way constitutes an endorsement, express or implied, of any product, service, company, opinion or political position. For more information about the Red Cross, please visit www.redcross.org.

All-New 2012 Honda Civic Emphasizes Style, Fuel Economy and Performance

Two models offer 40+ mpg

Featuring the widest array of engine choices available in its class, the 2012 Civic is designed to even better meet the diverse needs of the compact-vehicle buyer when it launches this spring. The entire redesigned ninth-generation Civic lineup will become more fuel efficient with two models – the all-new Civic HF and the Civic Hybrid – each delivering fuel economy estimates of more than 40 mpg on the highway.

Built on the tradition of Honda fuel efficiency, the economical Civic HF model will be the most fuel-efficient gasoline-only powered Civic in the lineup when it launches this spring. Equipped with a 1.8-liter i-VTEC engine, the Civic HF is targeted to earn EPA-estimated fuel economy1 of 41 mpg on the highway. The 2012 Civic Hybrid, which will be outfitted for the first time with a lithium-ion battery and a larger 1.5-liter i-VTEC engine, is expected to achieve an EPA-estimated city/highway combined fuel economy1 of 45 mpg, an improvement of 4 mpg compared to the current Civic Hybrid. Both the Civic HF and Civic Hybrid models will be equipped with aerodynamic components for improved efficiency and Honda ECO Assist™ technology, an innovation that can enhance efficient vehicle operation while providing feedback to promote more efficient individual driving styles.

"The Civic is the only model in the industry that can deliver on all fronts – fuel economy, sporty performance, smart packaging, alternative fuel and long-term value," said John Mendel, executive vice president of sales for American Honda Motor Co.,Inc. "For the ninth-generation Civic, we are emphasizing improved fuel economy across the board, from the hybrid sedan to the sporty Si model."

In addition to the Civic HF and Civic Hybrid models, the Civic Sedan, Civic Coupe and Civic GX Natural Gas models are also estimated to achieve improved fuel economy compared to the current models. The Civic Sedan and Civic Coupe achieve an EPA-estimated fuel economy2 of 39 mpg on the highway, an improvement of 3 mpg when compared to the current model. The Civic Natural Gas vehicle is anticipated to earn a 7 percent improvement in fuel economy compared to the current model. The Civic Sedan, Civic Coupe and Civic Natural Gas models will all be equipped with the Honda ECO Assist technology.

Along with improved fuel economy, the new Civic lineup also delivers more performance, particularly with the Civic Si. The Civic Si sedan and coupe models will be equipped with a larger, more powerful 2.4-liter engine as well as a new 6-speed manual transmission. The new engine is anticipated to deliver 200 horsepower with 170 ft-lb of torque. Even with the larger engine and a 22 percent increase in torque, Civic Si is targeted to achieve an EPA-estimated highway fuel economy1 of 31 mpg; an increase of 2 mpg when compared to the current model.

The 2012 Civic lineup includes a sedan and a coupe with conventional gasoline models, a new "HF" high fuel economy version, two sporty "Si" performance versions, along with one hybrid and a natural gas alternative-fuel variant.
Additional information on the new 2012 Civic will be announced closer to the on-sale date. For more information on the current Civic and other Honda models, please visit www.hondanews.com.

Civic HF, Sedan, Coupe and Natural Gas Specifications

• 140 horsepower, 1.8-liter i-VTEC™ 4-cylinder engine
• 5-speed automatic transmission
• ECO Assist technology
• EPA-estimated Civic HF highway fuel economy: 41 mpg
• EPA-estimated Civic Sedan and Civic Coupe highway fuel economy: 39 mpg

Civic Hybrid Specifications

• 110 horsepower, 1.5-liter i-VTEC™ 4-cylinder engine (combined gasoline + electric)
• Continuously Variable Transmission (CVT)
• Lithium-ion battery
• ECO Assist technology
• EPA-estimated Civic Hybrid city/highway combined fuel economy: 45 mpg

Civic Si Specifications

• 200 horsepower and 170 lb-ft, 2.4-liter i-VTEC™ 4-cylinder engine
• 6-speed manual transmission
• EPA-estimated Civic Si highway fuel economy: 31 mpg

¹Preliminary EPA mileage estimates determined by Honda. Final EPA mileage estimates not available at the time of printing. Use for comparison purposes only. Your actual mileage will vary depending on how you drive and maintain your vehicle.

²Based on 2012 EPA mileage estimates. Use for comparison purposes only. Do not compare to models before 2008. Your actual mileage will vary depending on how you drive and maintain your vehicle.

Honda Earns #1 Ranking on ACEEE's "Greenest Vehicles of 2011" List for the Eleventh Year in a Row

Honda Civic GX natural gas vehicle earns top spot

Five Honda vehicles earned recognition from the American Council for an Energy-Efficient Economy (ACEEE) as being among the "greenest vehicles of 2011" with the natural gas-powered Civic GX earning the title of America's greenest vehicle for the eighth time. In the annual ACEEE's "Green Book® Online" ranking of environmentally responsible vehicles (available at www.greenercars.org), the near-zero emissions natural gas-powered Civic GX ranked first with the Civic Hybrid and Insight also included of the list of ACEEE's 12 most environmentally responsible vehicles available to the public. The CR-Z Sport Hybrid coupe and Odyssey minivan were also named as the "greenest vehicles" within their respective classes. This is the 11th year in a row that a Honda vehicle has received the number one ranking and the 13th straight year that multiple Honda vehicles have been named in the top 12.

"The highest level of recognition from ACEEE further illustrates Honda's long standing commitment to developing vehicles that feature both outstanding fuel economy and low emissions," said John Mendel, executive vice president of American Honda. "Honda is honored to have its vehicles recognized as among the 'greenest' by an organization dedicated exclusively to environmental efficiency and sustainability."

The ACEEE ranking system uses a singular measure that incorporates fuel economy and health-related pollution impacts plus global warming and up stream emissions. All vehicles are analyzed and given a "Green Score" which is used to rank a vehicle's total environmental performance, including a list of the 12 "greenest" and 12 "meanest" vehicles along with a ranking of greenest vehicles by segment.

The Civic GX is the only OEM-built, dedicated CNG passenger car assembled in America and the only vehicle certified by the EPA to meet both Federal Tier 2 Bin 2 and Inherently Low Emission Vehicle (ILEV) zero evaporative emission certification standards. Honda recently announced the expansion of Civic GX retail sales. The increased availability of the Civic GX helps bring inherently clean-burning natural gas technology to an even broader audience while also supporting diversity in transportation energy resources.

Honda has a long history of environmental innovation, including the retail introduction of America's first hybrid, the Honda Insight (1999), delivery of the first fuel cell-electric vehicle in the U.S., the FCX (2002) and the first gasoline-powered vehicles in the hands of consumers to meet stricter emissions standards, including:

• The first gasoline Low Emissions Vehicle (LEV), the 1996 Honda Civic.
• The first gasoline Ultra-Low Emissions Vehicle (ULEV), the 1998 Honda Accord.
• The first gasoline Super Ultra-Low Emissions Vehicle (SULEV), the 2000 Honda Accord.
• The first vehicle to quality as an Advanced Technology Partial-Zero Emissions Vehicle (AT-PZEV), the 2001 Civic Natural Gas vehicle.

About the American Council for an Energy-Efficiency Economy (ACEEE)

The American Council for an Energy-Efficient Economy is an independent, nonprofit research group dedicated to advancing energy efficiency as a means of promoting economic prosperity, energy security and environmental protection.

For more information or downloadable high-resolution images of Honda award winners and other Honda vehicles, please visit www.hondanews.com. Consumer information is available at www.honda.com. For more information on ACEEE, visit http://www.greenercars.org.

[CNG] denotes compressed natural gas fuel.
[P] denotes premium gasoline
^a A listing with two emission standards (e.g., Tier 2 bin 2 / PZEV) denotes a single vehicle carrying both a federal and a California emission certification. Green Scores for such listings reflect the cleaner of the two certifications.
^b Compressed natural gas (CNG) vehicle fuel economy is given in gasoline-equivalent miles per gallon.
^c Electric vehicle fuel economy is given in miles per kilowatt-hour
^d The Smart Fortwo Electric Drive scores 60, but is not eligible for the Greenest list due to low sales volume. Only 250 units of the 2011 Smart Fortwo EV will be available on a trial basis in the U.S.

*Using domestically and globally sourced parts

Newly Refined 2012 Acura TL Debuts At Chicago Auto Show

Fresh Looks, a New 6-speed Automatic Transmission and Upgraded Technology Highlight 2012 TL Changes

Making its debut at the 2011 Chicago Auto show, Acura's newly refined TL delivers fresh looks, improved performance and upgraded technology. Most apparent are the visual changes that incorporate new front and rear styling, but also present is a new Sequential SportShift 6-speed automatic transmission for improved performance and fuel economy, a revised interior and a host of technology upgrades.

"The 2012 Acura TL is refined, yet aggressive," said Jeff Conrad, vice president of Acura sales. "Already known for its great performance, the enhanced TL has a sophisticated new look and an all-new 6-speed automatic transmission that will take performance to the next level."

The 2012 TL's refined new look includes a redesigned front bumper with improved aerodynamics, a revised grille, updated headlights and turn signals, a new fog light design and a shorter front overhang. At the rear, a new rear bumper incorporates a significantly repositioned license plate opening and smaller rear reflectors, while updated taillights and a thinner rear trunk edge trim add to a sophisticated new look.

To increase performance, a new Sequential SportShift 6-speed automatic transmission is applied on all TL models with automatic transmission. In addition to incorporating engineering enhancements aimed at improving efficiency, a sport-minded double-kick-down feature lets the driver command a double downshift— such as from Fifth to Third gear. The Drive-by-Wire™ throttle system also creates a "blip" of the throttle to help match gear speeds while downshifting.

In addition, the transmission teams with a new multi-clutch torque converter that not only reduces heat build-up during operation, but also allows for lock-up activation during a much wider range of driving conditions— which helps generate improved fuel economy. As a result, city/highway fuel economy is now 20/29 mpg*— an increase of 3 mpg in highway driving over the 2011 TL. To further improve operating efficiency, the TL's standard 3.5L V-6 engine receives a host of friction-reduction technologies while a revised air inlet system provides cooler air for both the 3.5L and 3.7L engines.

For 2012, two distinct versions of Acura's performance luxury sedan remain: a 280 horsepower, front-wheel-drive TL along with a powerful 305 hp TL paired with Acura's exclusive Super Handling All-Wheel Drive™ (SH-AWD™). The performance-minded 6MT model will continue to be offered in the 2012 TL SH-AWD lineup, helping broaden the TL's appeal among luxury performance sedan buyers.

Both the TL and TL SH-AWD™ models offer an available Technology Package which includes the Acura Navigation System with Voice Recognition™, AcuraLink Real-Time Traffic with Traffic Rerouting™ and AcuraLink Real-Time Weather™, and an Acura/ELS Surround® 410-watt Premium Audio System. For 2012, the hard disk drive (HDD) based navigation system increases in size to 60 gigabytes, map coverage is more expansive, USB connection speed is faster, and the full VGA monitor is brighter with even richer colors. Also available is a new Advance Package that incorporates all-new ventilated front seats along with a new blind spot information (BSI) system that alerts the driver of other vehicles that are in close proximity.

Standard on the 2012 TL are new 17x8-inch 7-spoke aluminum wheels with P245/50R17 all-season tires for confident year-round performance. The TL SH-AWD® comes standard with new 18x8-inch 5-spoke aluminum wheels with low-profile P245/45R18 tires for more agile handling. Finally, when equipped with the available Advance Package, the TL comes with 18x8-inch 5-spoke wheels while TL SH-AWD™ is fitted with 19x8-inch split five-spoke aluminum wheels with new performance minded P245/40R19 all-season tires.

Along with every new Acura, the new 2012 TL is covered by a comprehensive 4-year/50,000 mile bumper-to-bumper limited warranty and a 6-year/70,000 miles powertrain limited warranty. Additional benefits of ownership include Acura Total Luxury Care® (TLC®), which provides free 24-hour roadside assistance, concierge service and trip routing.

Acura
Acura offers a full line of technologically advanced performance luxury vehicles through a network of 270 dealers within the United States. The 2011 Acura lineup features six distinctive models including the RL luxury performance sedan, the TL performance luxury sedan, the TSX sports sedan and all-new Sport Wagon, the turbocharged RDX luxury crossover SUV, the award-winning MDX luxury sport utility vehicle and the ZDX four-door sports coupe.

For more information about Acura vehicles, please visit www.acura.com. For additional media information, please go to www.acuranews.com.

*Based on 2012 EPA mileage estimates. Use for comparison purposes only. Do not compare to models before 2008. Your actual mileage will vary depending on how you drive and maintain your vehicle.