Knox
03-01-2006, 12:01 AM
Source: Reuters (http://today.reuters.com/business/newsArticle.aspx?type=basicIndustries&storyID=nL2818981)
Honda Motor Co expects its new Civic model to fuel sales growth and help rescue margins in Europe, Chief Executive Takeo Fukui told Reuters on Tuesday, ruling out bringing the premium Acura line to the continent.
"Civic is really well received in the market now and there is huge demand. At the moment we are trying to catch up with the demand," he said in an interview at the Geneva car show.
"Toward the end of this year production will catch up with demand and therefore in 2007 I expect to see another increase," he said.
Honda's target is to boost European sales 8.4 percent to 310,000 units in calendar year 2006. Its new CR-V crossover model to be introduced late this year or early next will also help sales.
Honda's operating margin in Europe suffered during the switchover to the new Civic, Fukui said, calling this a temporary phenomenon.
Fukui played down media reports that Honda, Japan's third-biggest carmaker, could soon sell a low-cost hybrid car, a version of its popular Fit subcompact.
"Other than Civic, Accord and Insight we don't have any other concrete plans to introduce a hybrid at the moment," he said, adding it was crucial to bring down the costs of hybrids to make them more of a success.
"There is huge demand for the Civic hybrid, but can't grow unless we reduce costs," he said. The target was to reduce the price premium of hybrids to 200,000 yen ($1,719).
Honda sells hybrid versions of its two best-selling cars, the Accord and Civic, at a premium of around 300,000 yen. Its hybrid-only Insight coupe was the first gasoline-electric car to be sold in the United States.
Fukui said Honda saw no sense in launching its high-end Acura line in Europe now.
"We don't have any plans at the moment to have the Acura in Europe. Reinforcing the Honda brand is the top priority in Europe. With only 310,000 unit sales in Europe, I cannot imagine having Honda and Acura," he said.
Honda Motor Co expects its new Civic model to fuel sales growth and help rescue margins in Europe, Chief Executive Takeo Fukui told Reuters on Tuesday, ruling out bringing the premium Acura line to the continent.
"Civic is really well received in the market now and there is huge demand. At the moment we are trying to catch up with the demand," he said in an interview at the Geneva car show.
"Toward the end of this year production will catch up with demand and therefore in 2007 I expect to see another increase," he said.
Honda's target is to boost European sales 8.4 percent to 310,000 units in calendar year 2006. Its new CR-V crossover model to be introduced late this year or early next will also help sales.
Honda's operating margin in Europe suffered during the switchover to the new Civic, Fukui said, calling this a temporary phenomenon.
Fukui played down media reports that Honda, Japan's third-biggest carmaker, could soon sell a low-cost hybrid car, a version of its popular Fit subcompact.
"Other than Civic, Accord and Insight we don't have any other concrete plans to introduce a hybrid at the moment," he said, adding it was crucial to bring down the costs of hybrids to make them more of a success.
"There is huge demand for the Civic hybrid, but can't grow unless we reduce costs," he said. The target was to reduce the price premium of hybrids to 200,000 yen ($1,719).
Honda sells hybrid versions of its two best-selling cars, the Accord and Civic, at a premium of around 300,000 yen. Its hybrid-only Insight coupe was the first gasoline-electric car to be sold in the United States.
Fukui said Honda saw no sense in launching its high-end Acura line in Europe now.
"We don't have any plans at the moment to have the Acura in Europe. Reinforcing the Honda brand is the top priority in Europe. With only 310,000 unit sales in Europe, I cannot imagine having Honda and Acura," he said.