While most automakers have been struggling to sale their wares in the struggling US auto market, Honda has held its own -- and then some. Honda's robust selection of high volume cars has led to a 1.2% sales increase in a market that is down a disastrous 11%, and Honda expects things to continue next year, with new models like the redesigned Fit adding to already strong sales. Industry-wide, though, Honda doesn't expect a good 2009. Honda, much like Toyota, sees more of the same sullied sales for the rest of this year and next, predicting 2009 sales at a dismal 13.5-14 million units industry-wide due to financial struggles in the banking sector. Honda sales VP John Mendel doesn't think credit issues will affect the Japanese automaker, due to the typical Honda customer's better than average credit. Mendel says he has no problem with the $25 billion in loans sought by US automakers, but he would like to see some of the money go to the hundreds of suppliers that are also struggling to survive. He was quick to point out that Honda didn't need any outside help, and he even went as far as to equate the loan with "getting in a bread line." That won't win him many friends in Detroit, but then again, Honda doesn't have or need many allies in Motown anyway.
For white collar workers that still work at the Ford Motor Company: congratulations, you've officially made the cut. Ford's President of the Americas, Mark Fields, announced at a media event that the Blue Oval has successfully achieved its targeted cuts, at least for now. Fields told reporters that Ford would "continue to look at our structure and evaluate that versus the external environment," which is fancy executive talk for "if we don't start making some money, we'll cut some more." Fields didn't reveal the exact number of cuts that were made to achieve that goal.
Ford announced in June that it would cut 15% of its salary-related costs in an effort to become more lean and conserve cash during the brutal automotive downturn. Ford is trying to conserve enough Bennies to pay for its ambitious powertrain plans that will be needed to help the Dearborn, MI automaker offer the fuel efficient vehicles customers want. Fields said that spending on engines and transmissions over the next couple years will be "unprecedented," and that Ecoboost, diesels, hybrids, and other fuel-saving technologies will get the lion's share of the spending. Ford also plans to convert three truck and SUV factories to small car production and add six European models to its product mix.
