Honda reduce their workforce.

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grober

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Honda are to reduce their Swindon plant workforce by 800 down from 3,500 [ 23% cut] announced today due to reduced demand in Europe. New car registrations are down especially in Southern European states with their current economic problems. Registrations in Greece down 41% in the first 11 months of 2012, while Portugal was down 37% and Italy was down 20%. Maybe Hondas are in a particularly vulnerable sector of the market or its a reflection of the pound versus the Euro?? BBC News - Honda to cut 800 jobs in Swindon
 
Maybe Hondas are in a particularly vulnerable sector of the market or its a reflection of the pound versus the Euro?? BBC News - Honda to cut 800 jobs in Swindon

I think Honda are in a trap.

Honda can't command a premium with the CRV, Civic and Jazz the way they used to - and there's no space for the Accord in Europe next to BMW, Audi, and MB. The Civic is aging. And other manufacturers have innovated in terms of market positions and functionality.

The likes of Nissan are producing cars like the Juke that excite the market more. Qashqai seems to be the new Almera. Ford, PSA, and GM have also adapted and are offering small MPVs (eg. B-Max, Meriva). The likes of Kia are making inroads - those 7 year warranties excite the pensioners.
 
There are too many Japanese brands in Europe. Toyota is perceived as technologically advanced and innovative - which used to be Honda's slot - remember the VTEC engine, the CRX? - plus it has a premium brand in Lexus - and Nissan and Mazda benefit from the Ford and Renault affiliations.

Honda is struggling to find an identity or niche in the European car market.

And, the Insight never did catch on in the same way as the Prius did...

A rising tide lifts all boats and when the market was good everyone got to sell some cars, but when times ate bad the weakest go down first.

I wonder if European governments will revive the Scrappage Scheme?
 
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The numbers never did stack up at Honda, this had to come (imo) at some point. They employ 80% of the number of staff at Nissan, but produce less than 30% of the Nissan plant's output. I hate to think how much each car costs to build compared with Nissan or other OEM's.
 
Its a pity because Honda consistently top UK owner satisfaction surveys both for their products and dealer service. Their sales figures in the UK were evidently better than the majority of Europe in 2012 but that's of scant comfort to Honda I guess. As has been said they've never managed to crack the "company car" market in the UK with any of their models. They remain popular in the States where their locally produced Accord is a bigger car than the European one----a bit like the US produced longer wheelbase VW Passat is. Funnily enough I reckon these slightly bigger cars offering a slightly bigger engine choice and "more bang for your buck" might have equally done better in the UK market against the likes of the Ford Mondeo---- a bit of extra space/power doesn't cost much to produce and if it means selling more cars? :dk:
 
The current Civic was launched only last year. It will also now come with a new 1.6 diesel engine ~80mpg to compete more competitively in the fleet market vs. the 2.2 diesel.

On the second-hand market I like what Honda represent: good balance of price and quality.

I'm not sure how easy it is to compare one factory to another without knowing how much true manufacturing happens on site, verses final assembly.

I think this story reflects more the European car market as a whole rather than the Honda brand being weak. IMHO.
 
I think Dryce has pretty much summed it up.

Honda's success has always been based on their premium quality, but others have caught up and they don't try to charge the premium that Honda do. Their cars have been increasingly falling into the "worthy but dull" or "interesting but flawed" category for some time.

I've always had a bit of a soft spot for Honda, but their motorcycle division lost its way a few years ago in most sectors except Supersports and mass-market small scoots. The car division seems to be going the same way :(
 
There is huge over capacity in the car market. Very few manufacturers are immune to this. Hence why the recently announced UK growth is odd: evidence points to manufacturers registering their own cars and flooding dealer stocks.
 

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