| March 16th, 2009 by admin |
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Honda’s Success: Why Their Cars Keep Selling
Honda’s Success: Why Their Cars Keep Selling
Most of us in the automotive industry have always noted that Hondas sell extremely well. Even now, as the economic clouds have turned from gray to black, Honda sales continue to outpace those of its competitors. If you ask drivers why they believe this is the case, you’ll hear “strong resale value” or “they’re dependable” as the most common responses. In truth, there are a number of reasons why Civics, Accords, and other models have been moving off the dealership lots more quickly than their competitors’ cars.
In this article, we’ll take a closer look at a few of those reasons. In doing so, you may decide to either keep your current Civic or Accord, or visit the dealership to look at new and used models.
Lower Dependency On Large Vehicles
The inventories of the major automakers are filled with large vehicles. For example, Ford has their Expedition, not to mention their enormous trucks. General Motors has their Yukon. Chevrolet’s line includes their Tahoe and Suburban. The foreign automakers aren’t entirely without blame. Toyota’s Sequoia and Nissan’s Armada can both accommodate a small soccer team.
As gas prices skyrocketed last year, fewer people were shopping for SUVs and similar vehicles. Indeed, many drivers wanted to trade them in for smaller cars that were more fuel-efficient. Honda has always had far less dependency on the large vehicle market. As a result, they were perfectly positioned for the trend toward “smaller.”
More Fuel Efficiency
When the price of gas unexpectedly climbed above $4 per gallon last year, it served as a wake-up call to motorists. Accustomed to spending $70 or $80 each month on gas, they watched their monthly fuel budget rocket into the hundreds of dollars. Honda has been able to cultivate an image of environmental friendliness and fuel efficiency. That implies instant savings at the pump. Plus, when combined with their reputation for producing high-quality cars, a Civic or Accord becomes a logical choice for a lot of prospective buyers.
Quick Response To Market Demand
One of the challenges most automakers cope with is responding quickly to the demand in the marketplace. Often, billions of dollars are spent on constructing the platform for a given model. If demand for that particular model erodes quickly, that can spell trouble. Automakers have difficulty making quick changes to their platforms. By contrast, Honda uses a system called flexible manufacturing. Their platforms are designed to allow quick changes in capacity and even support the production of different models.
By responding to the market quickly, they’re better prepared to deliver the cars, trucks, and other vehicles that customers want.
In today’s economic climate, every automaker is confronted with severe obstacles that impact their sales. Honda – and the companies which sell their auto parts – is poised not only to survive the recession, but to take advantage of the inevitable recovery.
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