Honda Civic Design Faults Hurt Its Reputation

- Honda Civic Design Faults Hurt Its Reputation



Aug 22, 2011

Honda (NYSE:HMC) may be a leading manufacturer but its design problems are hurting its reputation. That is evidenced by Consumer Reports decision to pan the Civic, a long time favorite.

Jim Hall, who runs an automotive consulting firm AutoPacific Group, "Customers don't care about how the cars are made. They care how they drive and how they look. If you are doing an exceptional job building a mediocre product, that impresses the industry but not the buyer."

Honda Motor (NYSE:HMC) has a potential upside of 49.7% based on a current price of $30.86 and an average consensus analyst price target of $46.2.

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Honda To Invest $800 Million In New Automobile Plant In Mexico

- Honda To Invest $800 Million In New Automobile Plant In Mexico



Aug 12, 2011

Honda de Mexico (NYSE:HMC), Honda's production and sales company in Mexico, announced that it will build an automobile plant for production of fuel-efficient subcompact vehicles for the Mexican and North American markets.

Honda will invest approximately $800 million to build the plant, which is scheduled to begin operation in 2014. The company is expected to hire 3,200 associates at its full annual capacity of 200,000 units; the plant will boost Honda's capital investment in its North American operations to nearly $21 billion.

Honda Motor (NYSE:HMC) has a potential upside of 37.5% based on a current price of $33.59 and an average consensus analyst price target of $46.2.

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Honda Reported 29.9% Decline In Auto Sales In China In June

- Honda Reported 29.9% Decline In Auto Sales In China In June



Jul 6, 2011

Honda Motor Co. (NYSE:HMC) reported a 29.9% decline in its automobile sales in China in June as the lingering effect of the earthquake in Japan continues to crimp production.

The automaker said sales in China declined to 35,105 units in June, while sales in the first half of the year totaled 271,369 units, down 12.3% year-over-year. Honda sold 646,631 units in China last year, and is targeting around a 12% increase to 730,000 units this year.

Honda Motor has a potential upside of 17.2% based on a current price of $39.41 and an average consensus analyst price target of $46.2.

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Honda Motor Projects 65% Drop in Profit For the Year

- Honda Motor Projects 65% Drop in Profit For the Year



Jun 14, 2011

Honda Motor Co. (NYSE:HMC) forecast a 65% drop in annual profit for its year ended March 2012 this morning, as vehicle production continues to be hampered due to the March 11th earthquake.

The company said it expects total production for the year to drop 6% to 3.3 million total vehicles for the year, down from 3.51 million in its year ended in March 2011.

Honda is projecting a profit of $2.4 billion, down sharply from the $6.6 billion recorded last year, and far lower than the post-quake consensus estimate for $5.0 billion. Revenues are projected to fall 7.1% to $104 billion.

The estimates are based on an average exchange rate of 80 yen to the dollar and 110 yen to the euro.

The company said it expects Japanese production to nearly normalize by later this month, while overseas production could take until August or September. That isn't very encouraging, considering the company manufactures over 70% of its cars outside of Japan.

Honda Motor has a potential upside of 27.9% based on a current price of $36.13 and an average consensus analyst price target of $46.2.

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Honda Extends North American Factory Slowdown By 2 Weeks

Honda Extends North American Factory Slowdown By 2 Weeks



Apr 15, 2011

Honda Motor Co (NYSE:HMC) said it will slow down production at its 11 North American factories into at least early May because of the ongoing parts shortage from Japanese earthquake-damaged factories.

The company said Friday it is extending the production cuts through at least May 6th, and it expects more disruptions beyond that.

The slowdowns could reduce output in the period by as much as 50%, and are likely to cause a shortage of Honda vehicles in a matter of weeks.

Honda's Japanese factories are running at half capacity, and the President of the company said it could take months to return to full production.

The company said none of its 21,000 North American factory workers would be laid off.

Shares of Honda Motor are trading up 1.73% at $35.87.

Honda Motor, Mazda Will Resume Limited Production At Japanese Factories In April

Honda Motor, Mazda Will Resume Limited Production At Japanese Factories In April



Honda (NYSE:HMC) and Mazda said they will resume limited production at several Japanese factories in April, but full production will depend on the availability of parts, which is another sign that the Japanese auto industry is starting to come back from the March 11 earthquake and tsunami.

Industry analysts say it could take until summer before factories are back at full output.

Japan is the second-largest supplier of cars in the world, and is also a major parts producer. The impact of the earthquake is already causing production cuts in other countries, including the U.S. Few plants were seriously damaged in Japan but water and electricity supplies have been hampered.