Toyota, Honda will lead incentives war

Honda, Toyota offer big incentives to boost sales

The earthquake that struck Japan in March put the car industry in plenty of problems resulting in loss of production and low sales. After months of uncertainties and despair, the leading car makers of Japan are gearing up in a big way to account for all the losses incurred. Industry experts feel that a battle is on the cards between the best car makers of Japan in order to achieve maximum sales. Plenty of plans and strategies are being charted out to woo the consumers. The consumers are also not complaining as they have plenty to look forward to now. With the economy not doing well, the consumers had shied away from the showrooms.

Industry sources have revealed that plenty of incentives are going to be given by car makers, as the production of cars has also picked up. The buyers are in for a shopping feast as they would have a larger say in buying. Honda and Toyota are leading in offering incentives to customers. This also makes great sense as Honda and Toyota were the hardest hit and these two car makers had suffered huge production losses. The market share of Toyota in the United States has gone down by a good three percent.

The supply of inventories for manufacturing new cars is steadily increasing with Honda and Toyota gaining the most. Toyota is going all out to increase its car output for catering to the needs of domestic market. Toyota is also mobilizing its operations at its plants all over North America to increase the output of cars at these units. This is seen as a positive move as the majority of car dealers were left idle without any branded new cars. The North American car production of Honda is in full swing and back to its original full capacity. Honda has also increased its production of cars in Japan to 95% of its original capacity.

The year 2011 has been bad for both Honda and Toyota with both suffering huge losses. This can be attributed to lack of supply of spare parts and accessories required for manufacturing new cars. Honda witnessed car sales dip by as much as 28%. The car sales of Toyota went down by 23%. Other leading car makers of Japan also incurred significant losses with Subaru losing 9% of its car sales in the month of July.

At the same time, Korean and American car makers increased their market share by manufacturing new cars. General Motors increased its share by 8%, Chrysler increased its sales by a good 20% during the month of July and Ford also gained around 13%. The Korean and American car makers largely gained because sufficient Japanese cars were not hitting the market. The dealerships of Honda and Toyota are upbeat and optimistic.

In order to increase the consumer and dealer confidence, Toyota is planning to introduce the next model of Camry Sedan in the mid size range. The Camry Sedan has been Japans number one selling car for a record thirteen years out of the last 14 years. The good news is that prices were slashed by a good $2000 compared to the last model.

Not to be left behind, the car dealers are also offering huge incentives, primarily due to the confidence shown by Honda and Toyota. All the positive steps taken both by the dealers and leading car makers should definitely bring back the eager consumers back to the car showrooms. Definitely, this is a great time for the consumers to buy new cars with plenty of discounts and incentives being offered.

Honda Motors to upgrade US car plants

Honda to spend $355 million in Ohio plant upgrades

The massive and destructive earthquake that struck Japan has left the automobile industry in complete disarray.  The supply chain management system of leading auto makers has been completely thrown off gear.  Adding to their cup of woes, the exchange rate problems related to currency, has also affected leading car makers.  All leading car makers including Honda have been troubled by the turn of events due to the massive earthquake.

Honda is trying to recover its losses incurred in Japan by concentrating and investing more on its North American car plants.  This move has been hailed as positive and welcomed by the car industry in general.  Honda plans to invest a whopping $355 million to increase its manufacturing capacity at Ohio in the United States.

honda plant ohio

Honda’s car plants in North America

Honda plans to pump in a good $166 million in to its car plant at East liberty.  Honda has one more car plant at Marysville which would be receiving a good $64 million.  Honda is making a huge effort to reinforce their car operations in the United States as their cars were the first to hit the roads of United States.  The engineering facility of Honda at Raymond is also going to see improvements in its wind tunnel.  But Honda has not declared the exact cost of the improvements to be carried out at Raymond.

The factories of Honda at North America are undergoing a complete makeover, with Honda planning to optimize their production at all their factories across North America.  Honda faced a huge shortage of parts in March and this led to a 2.6 percent fall in the sales at United States in the month of July.  The market share of Honda fell to 9.3 percent which at one time was a good 10.6 percent.

The manufacturing units and engineering facilities of Honda are highly advanced with the use of latest state of the art technologies.  Honda opened its manufacturing units in United States much before the other giant car makers like Nissan and Toyota.  This definitely gives an edge to Honda over other car makers.  During the downturn, Honda also had to incur huge losses and its output across its car plants at Mexico, Canada and United States fell by 26 percent.  Even in terms of car units, Honda which produced 754,807 last year could only manufacture 559,981 car units. Read more »