Honda posts first quarterly loss in 15 years

[JeffreyLebowski]

Originally posted by: soccerballtux
They and Toyota would be doing great if GM et al had failed. There's oversupply in the economy. Too many car makers and not enough buyers.

Any sales GM has picked up would have gone to Toyota and Honda; and they'd be doing better now.

Government is basically penalizing Toyota and Honda for out-innovating GM and the Detroit guys.

The .gov won't let GM and Chrsyler die because they need trucks. Only the Americans can make trucks that work.
Look at fleet trucks. 99.9% are American. Hell the Toyota shop by my house uses Chevy trucks to haul parts.

 

[piasabird]

Maybe they should start building cars people can afford to buy???

The USA could ban the import of foreign made cars. Might make things easier on the domestic car manufacturers.

 

[imported_Lothar]

Originally posted by: Strk

Originally posted by: Lothar
Who gives a crap about quarterly profits? :roll:
They still expect to post a profit for the year, and they still posted a profit last year.

If you're going to care about quarterly profits, then you better start caring about hourly, daily, weekly, and monthly profits as well.

Shareholders do

But seriously, this just shows how bad things are right now. Honda, for the most part, has been one of those safe companies. They don't really stretch themselves out, nor do they go for rapid expansion. They're more about consistency.

They're still pretty healthy overall though, as they said they'll still remain profitable. Honda also hasn't had to make pretty drastic cuts compared to other companies.

It will be interesting to see what Toyota posts though.

Real shareholders only care about long term growth.
3 months is not long term enough.

 

[coloumb]

Eh - nobody is safe - but the smart businesses will survive this downturn. Most of the reports indicate we have hit the bottom and are now just leveling out - within a few years, we'll start to see profits return - we just won't see the huge upswing that have typically happened in previous downturns.

 

[Engineer]

Originally posted by: BlahBlahYouToo

y'all should consolidate then.

Suppliers have consolidated for years. The automotive manufacturers have used the suppliers to save money by "forced savings" instead of correcting their own internal problems and this has squeezed the supplier margins to dangerously thin margins (sub 3% in many cases). I think though, that the automotive companies have finally realized that the suppliers can't absorb all of their cuts or they will go bankrupt and/or out of business. It just takes one component of the 10'000's of vehicle components to shut the lines down.

Suppliers are much more lean than many of the automotive mfgs are.

 

[Fingolfin269]

Originally posted by: Engineer

Originally posted by: BlahBlahYouToo

y'all should consolidate then.

Suppliers have consolidated for years. The automotive manufacturers have used the suppliers to save money by "forced savings" instead of correcting their own internal problems and this has squeezed the supplier margins to dangerously thin margins (sub 3% in many cases). I think though, that the automotive companies have finally realized that the suppliers can't absorb all of their cuts or they will go bankrupt and/or out of business. It just takes one component of the 10'000's of vehicle components to shut the lines down.

Suppliers are much more lean than many of the automotive mfgs are.

Exactly. All it takes is one supplier to stop sending us a hose or a tube and we're shut down until a replacement can be found. That one might be pretty quick to fix but what about a tire supplier? We're screwed for quite awhile there...

 

[Engineer]

Toyota posts larger quartery loss than GM (largest ever by Toyota?)! :shocked:

1st annual loss by Toyota in over 6 decades.

Time to bailout Toyota, damnit!

 

[Engineer]

Originally posted by: Fingolfin269

Exactly. All it takes is one supplier to stop sending us a hose or a tube and we're shut down until a replacement can be found. That one might be pretty quick to fix but what about a tire supplier? We're screwed for quite awhile there...

Working in the automotive tubing industry for the last 16 years, I wouldn't say it "might be a pretty quick to fix" as some of the designs on these tubes and bundles are outrageous.

 

[teola]

I have a 2008 suzuki forenza it starts fine when above freezing but when it gets below freezing my car started then ran for approx 20 seconds and slowly shut down although my foot was pressing the gas pedal it just died down and did not start again. it's too cold noew now it willl not start or get gas into the injectors . my car cranks but will not turn over seems as no gas is comig through u have 3 quarts tank of gas.. please elp.. it only happens in the xtreme cold below freezing

 

[doubledeluxe]

Thanks for sharing. You're 5.5 years late.

 

[TheSlamma]

Best first post ever.

 

[OverVolt]

Not everything is a "Bubble". This is common during Economic difficult times. These times are just worse than what we've had in a very long time.

In what world does 1.99% represent the real inherent risk in a car loan? Not this one.

You could total the car. It could be a lemon and you say $%^& it and stop paying. The owner could get laid off. Car loan terms are growing longer. The car might not last the 6-7 year term over the typical 5 year term.

You really think only 2 in 100 people manage to fuck up their car in 5-7 years?

The lending standards are too loose. My GF could only afford a $20k car. She was approved for $45k. Combine that with the stupidity of the average person and yes, the auto loan market will blow up in 5-6 years.

I'm highly considering putting my money where my mouth is and leasing a car on the cheap for 2-3 years until the easy lending standards fueled rising car prices blows over then actually buying a car I will keep for a decade.

 

[OverVolt]

I have a 2008 suzuki forenza it starts fine when above freezing but when it gets below freezing my car started then ran for approx 20 seconds and slowly shut down although my foot was pressing the gas pedal it just died down and did not start again. it's too cold noew now it willl not start or get gas into the injectors . my car cranks but will not turn over seems as no gas is comig through u have 3 quarts tank of gas.. please elp.. it only happens in the xtreme cold below freezing

The tolerances are worse in the cold. Take it to a mechanic it could be a number of things. Could be as simple as needing new spark plugs (too large/too small of a gap, or fouled) to as bad as a head gasket leak.

But it sounds like an ignition problem.

 

[TheSlamma]

In what world does 1.99% represent the real inherent risk in a car loan? Not this one.

You could total the car. It could be a lemon and you say $%^& it and stop paying. The owner could get laid off. Car loan terms are growing longer. The car might not last the 6-7 year term over the typical 5 year term.

You really think only 2 in 100 people manage to fuck up their car in 5-7 years?

The lending standards are too loose. My GF could only afford a $20k car. She was approved for $45k. Combine that with the stupidity of the average person and yes, the auto loan market will blow up in 5-6 years.

I'm highly considering putting my money where my mouth is and leasing a car on the cheap for 2-3 years until the easy lending standards fueled rising car prices blows over then actually buying a car I will keep for a decade.

You just replied to a 5 year old post

 

[OverVolt]

You just replied to a 5 year old post

Yea you're right.

 

[Perknose]

I have a 2008 suzuki forenza...

I believe I have spotted your problem.

 

[spacejamz]

Boring cars that last a long time = customers don't have much incentive to buy new one in tough economy.

This car pretty much looks like mine (mine is same color but a 4 cyclinder) and I think it is far from boring....but to each their own I suppose...

 

[spacejamz]

damn necro threads...

 

[PricklyPete]

This car pretty much looks like mine (mine is same color but a 4 cyclinder) and I think it is far from boring....but to each their own I suppose...

Does that have a takata in it?

 

[spacejamz]

Does that have a takata in it?

No...these do though...

Acura: 2002–2003 CL and TL; 2003–2006 MDX; 2005 RL

BMW (627,615): 2000–2005 3-series sedan and wagon; 2000–2006 3-series coupe and convertible; 2001–2006 M3 coupe and convertible

Chrysler (371,309, including Dodge): 2005–2008 Chrysler 300; 2007–2008 Aspen

Dodge/Ram (371,309, including Chrysler): 2003–2008 Dodge Ram 1500; 2005–2008 Ram 2500, Dakota, and Durango; 2006–2008 Ram 3500 and 4500; 2008 Ram 5500

Ford (58,669): 2004 Ranger; 2005–2006 GT; 2005–2007 Mustang

Honda (5,051,364, including Acura): 2001–2007 Accord; 2001–2005 Civic; 2002–2006 CR-V; 2002–2004 Odyssey; 2003–2011 Element; 2003–2007 Pilot; 2006 Ridgeline

Infiniti: 2001–2004 Infiniti I30/I35; 2002–2003 Infiniti QX4; 2003–2005 Infiniti FX35/FX45; 2006 Infiniti M35/M45

Lexus: 2002–2005 SC430

Mazda (64,872): 2003–2007 Mazda 6; 2006–2007 Mazdaspeed 6; 2004–2008 Mazda RX-8; 2004–2005 MPV; 2004 B-series

Mitsubishi (11,985): 2004–2005 Lancer; 2006–2007 Raider

Nissan (717,364, including Infiniti): 2001–2003 Maxima; 2001–2004 Pathfinder; 2002–2006 Nissan Sentra

Pontiac: 2003–2005 Vibe

Saab: 2005 9-2X

Subaru (17,516): 2003–2005 Baja, Legacy, Outback; 2004–2005 Impreza, Impreza WRX, Impreza WRX STI

Toyota (877,000, including Lexus and Pontiac Vibe): 2002–2005 Toyota Corolla and Sequoia; 2003–2005 Matrix, Tundra

 

[desy]

I hope Honda makes it

 

[hal2kilo]

damn necro threads...

No kidding. I was confused until I saw the post dates.

 

[shira]

I hope Honda makes it

I'm sure your best wishes would have been appreciated in 2009. But for fiscal 2015, Honda is on a pace in excess of $5 billion in net income. So it's pretty likely that Honda can "make it" through to at least fiscal 2016.