Honda to Revamp Accord to Reverse U.S. Car Sales Drop

Ryan · Jun 15, 2005

http://www.bloomberg.com/apps/news?pid=10000080&sid=a5E74A0eS330&refer=asia

une 14 (Bloomberg) -- Honda Motor Co., Japan's third- biggest carmaker, said it plans ``substantial'' modifications to its Accord model in an effort to reverse a sales slump that may lead to the company's first U.S. sales decline in 12 years.

``We're planning some fairly major refreshes coming this year,'' John Mendel, Honda's U.S. sales chief, said in an interview today. The changes will address what customers view as the current Accord's shortcomings, including exterior styling and engine power, he said without elaborating. The latest Accord is about halfway through its four- to five-year model life.

In its attempt to boost U.S. demand, Honda is trying to regain share in a market that has accounted for 43 percent of its global sales. Accord sedans and coupes, which made up 25 percent of Tokyo-based Honda's total U.S. sales so far in 2005, fell 9 percent to 143,304 this year through May. Honda's annual U.S. sales haven't fallen since 1993, the longest growth streak in the market.

``Accord is Honda's symbol in this market. They'll do what they have to to protect it,'' said Jim Sanfilippo, executive vice president of Automotive Marketing Consultants Inc. in Bloomfield Hills, Michigan. ``It doesn't cost much to bend the sheet metal a little differently to improve the looks, so that's an easy option.''

Falling Sales

The drop for Accord, as well as the Civic -- a small car that is Honda's second-biggest selling U.S. model -- cut the company's U.S. sales 0.7 percent this year through May to 565,948. Civic sales are down 15 percent this year, in part because Honda has reduced production ahead of the release of a redesigned version due in about three months.

In spite of the declines so far this year, Honda will post a twelfth consecutive year of overall U.S. sales growth, said Mendel, who declined to estimate a percentage increase.

The company, the fifth-biggest automaker in terms of U.S. sales, has relied more on cars than its larger competitors, General Motors Corp., Ford Motor Co., DaimlerChrysler AG and Toyota Motor Corp., which sell more pickup trucks, sport-utility vehicles and vans.

Amid falling U.S. demand for cars Honda has added its first pickup, boosted production of SUVs and minivans and plans a second SUV for its luxury Acura line. Honda builds its North American Accord mainly at a plant in Marysville, Ohio.

`Enamored'

Accord sales may have also been hurt this year as Honda dealers focused more on selling newer, more expensive models such as the Ridgeline pickup and Pilot SUV, Sanfilippo said. ``My sense is a lot of dealers are a little bit enamored with selling these new trucks,'' he said.

Expanding competition and rising incentives in a ``mature'' segment of the U.S. auto market have contributed to Accord's slump, said Mendel, 50, senior vice president for the company's U.S. auto operations and who this year succeeded former sales chief Tom Elliott.

Midsize sedans ``are the Fallujah of the car industry,'' Mendel said. ``Everybody is basically pounding away with everything they've got.'' Honda still expects to maintain average annual sales volume on Accord of about 400,000 units, he said.

Honda earns about three-quarters of its global operating income in North America, which buys twice as many cars as the company sells in Japan.

Honda's U.S. operations are based in Torrance, California. The company's American depositary receipts rose 31 cents to $24.95 in New York Stock Exchange composite trading at 4:16 p.m.

psteng19 · Jun 15, 2005

The engine is not what's causing sales to slide.
It's the butt ugly looks and stiffer competition from the Altima and Mazda 6.

Ryan · Jun 15, 2005

Originally posted by: psteng19
The engine is not what's causing sales to slide.
It's the butt ugly looks and stiffer competition from the Altima and Mazda 6.

Correct - I can even say that with a straight face, driving a Scion xB

jtvang125 · Jun 15, 2005

I see Altimas everywhere now. I use to see Accords everywhere but now it's the Altimas.

NFS4 · Jun 15, 2005

Toyota Camry 2005 YTD vs 2004 YTD

+ 3%

OWNED

Camry 2005 YTD vs Accord 2005 YTD

178,890 vs 143,304

OWNED again.

Hell, if Toyota can push boring isht, what's up with Honduh?

Sheepathon · Jun 15, 2005

Well, the latest gen camry looks worlds better than the latest gen accord, for one...

Ryan · Jun 15, 2005

Originally posted by: NFS4
Toyota Camry 2005 YTD vs 2004 YTD

+ 3%

OWNED

Camry 2005 YTD vs Accord 2005 YTD

178,890 vs 143,304

OWNED again.

Hell, if Toyota can push boring isht, what's up with Honduh?

Factor in the Solara coupe, since it competes with the Accord. Even more p0wnage!!!

JulesMaximus · Jun 15, 2005

Good, they hit that thing with an ugly stick a couple years ago. I'm not surprised sales have dropped.

Now if only BMW would pick up on that subtle clue...

Nebor · Jun 15, 2005

Originally posted by: JulesMaximus
Good, they hit that thing with an ugly stick a couple years ago. I'm not surprised sales have dropped.

Now if only BMW would pick up on that subtle clue...

BMW sales are strong, particularly outside the US.

cavemanmoron · Jun 16, 2005

i read this as honda to revamp reverse,

sniperruff · Jun 16, 2005

the camry is a better value now is why.

HamSupLo · Jun 16, 2005

it's all about the altimas now

prontospyder · Jun 16, 2005

Originally posted by: HamSupLo
it's all about the altimas now

The Altima's design is still very fresh.

Svnla · Jun 16, 2005

I love Honda engine and reliability/quality/workmanship but their style/look need to improve.

JACKHAMMER · Jun 16, 2005

Originally posted by: prontospyder

Originally posted by: HamSupLo
it's all about the altimas now

Click to expand...

The Altima's design is still very fresh.

Agreed, while I hate the rear end, the engine is awesome.

Ns1 · Jun 16, 2005

Originally posted by: NFS4
Toyota Camry 2005 YTD vs 2004 YTD

+ 3%

OWNED

Camry 2005 YTD vs Accord 2005 YTD

178,890 vs 143,304

OWNED again.

Hell, if Toyota can push boring isht, what's up with Honduh?

now if toyota could release a half decent sports car =P

CombatChuk · Jun 16, 2005

Originally posted by: prontospyder

Originally posted by: HamSupLo
it's all about the altimas now

Click to expand...

The Altima's design is still very fresh.

We can thank Renault for turning around Nissan.

Stunt · Jun 17, 2005

Originally posted by: NeuroSynapsis

Originally posted by: NFS4
Toyota Camry 2005 YTD vs 2004 YTD

+ 3%

OWNED

Camry 2005 YTD vs Accord 2005 YTD

178,890 vs 143,304

OWNED again.

Hell, if Toyota can push boring isht, what's up with Honduh?

Click to expand...

now if toyota could release a half decent sports car =P

I have no experience with the Celica...does it suck?

Ns1 · Jun 17, 2005

Originally posted by: Stunt

Originally posted by: NeuroSynapsis

Originally posted by: NFS4
Toyota Camry 2005 YTD vs 2004 YTD

+ 3%

OWNED

Camry 2005 YTD vs Accord 2005 YTD

178,890 vs 143,304

OWNED again.

Hell, if Toyota can push boring isht, what's up with Honduh?

Click to expand...

now if toyota could release a half decent sports car =P

Click to expand...

I have no experience with the Celica...does it suck?

the GT blows, the gts is pretty fast but looks straight out of fast n furious

the new mr2 sucks and looks so incredibly ugly it's mind boggling

the solara isn't really a sports car...definately does not feel like one

they don't have anything that can reasonably compete vs the honda's lineup - rsx and s2k

zainali · Jun 17, 2005

good thing. i hope they start some big rebates. i was planning to buy one.

CombatChuk · Jun 17, 2005

Originally posted by: Stunt

Originally posted by: NeuroSynapsis

Originally posted by: NFS4
Toyota Camry 2005 YTD vs 2004 YTD

+ 3%

OWNED

Camry 2005 YTD vs Accord 2005 YTD

178,890 vs 143,304

OWNED again.

Hell, if Toyota can push boring isht, what's up with Honduh?

Click to expand...

now if toyota could release a half decent sports car =P

Click to expand...

I have no experience with the Celica...does it suck?

Overpriced and Underpowered similar to the current Civic SI (Celica is still more expensive). With the Scion TC, Toyota is discontinuing the Celica.

PandaBear · Jun 17, 2005

I was planning 6 years ago to retire my car next year, with an accord. Since my family's corolla will be 11 years old and my integra will be 8 years old, retiring the corolla and get a bigger family car.

.....Until Altima, Camry and Accord came out looking like asses.....

Now my choice have to be either an Acura TL, Lexus ES, or Infiniti G35, don't want to spend that kind of money but nothing good below that price range, I rather buy something 6 years old than the current generation of ugly stuff.

The last camry, accord, and galant are all good looking (can't say the same about altima but still acceptable).

I guess I should give Hyundai Sonata or the domestics a try, Malibu base and Taurus seems better all of a sudden. Subaru Legacy seems ok too.

z0mb13 · Jun 17, 2005

the accord 4 door is just butt ugly

last gen accord is BEAUTIFUL.. I dont know how the design changed that drastically

jjzelinski · Jun 17, 2005

I agree on the last gen accord, GREAT looking car; love the lines on it.

ElFenix · Jun 17, 2005

does that include the tsx, tl, and rl sales?

they should lump in odyssey, pilot, and ridgeline sales as well.

speaking of ridgeline, how is the ugly ducking doing as far as sales? i've seen only one so far.

Honda to Revamp Accord to Reverse U.S. Car Sales Drop

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