By: Chris Woodyard
Honda took the offense Tuesday when it comes to defending its stale sales figures for the year, which lag both arch-Japanese rivals Toyota and Nissan.
The basic message was that overall sales numbers don't tell the whole story. Honda is refusing to join much of the rest of the industry in gimmicks that can boost sales to the detriment of customers, says John Mendel, executive vice president of the automaker's U.S. sales arm. It is taking a conservative sales approach in hopes of retaining customers.
The basic message was that overall sales numbers don't tell the whole story. Honda is refusing to join much of the rest of the industry in gimmicks that can boost sales to the detriment of customers, says John Mendel, executive vice president of the automaker's U.S. sales arm. It is taking a conservative sales approach in hopes of retaining customers.
Honda says it's tops in the industry when it comes to sales to individual customers in some key segments. They include the Honda Accord and Civic sedans, Odyssey minivan and CR-V crossover. It says the findings are based on research from IHS Automotive.
Yet overall, Honda, which includes the Honda and Acura brands, is down: Sales were off 1.5% for the first seven months of the year compared with the same period last year, according to Autodata. Honda is under pressure from Toyota, which saw 6.1% sales gains in the first seven months of the year, and Nissan, which is up 12.6%.
Mendel says sales to individuals, as opposed to trying to lure fleet sales with big discounts, represent a long-term approach that will win in the end.
"The steady approach to growth is not only sustainable to us, but protects our customers and resale values," he said on a conference call with several automotive writers. He also says Honda is avoiding long-term financing, loans that he says can leave owners with less invested in their vehicles than they are worth as used cars, making it harder for them to trade in for new cars.
Still, the mid-month call was an unusual step for an automaker like Honda, which usually dwells on sales figures at the start of the month.
Mendel says Honda doesn't really care grabbing up more of the market, just for the sake of staking it out. "We've never chased market share," he says.
Instead, he says the automaker will continue with its slow-and-steady approach, which it believes will keep customers coming back to the brand. It won't bounce, he says, from one discounting approach.
"Prayer," he says, "shouldn't be your only strategy."
Yet overall, Honda, which includes the Honda and Acura brands, is down: Sales were off 1.5% for the first seven months of the year compared with the same period last year, according to Autodata. Honda is under pressure from Toyota, which saw 6.1% sales gains in the first seven months of the year, and Nissan, which is up 12.6%.
Mendel says sales to individuals, as opposed to trying to lure fleet sales with big discounts, represent a long-term approach that will win in the end.
"The steady approach to growth is not only sustainable to us, but protects our customers and resale values," he said on a conference call with several automotive writers. He also says Honda is avoiding long-term financing, loans that he says can leave owners with less invested in their vehicles than they are worth as used cars, making it harder for them to trade in for new cars.
Still, the mid-month call was an unusual step for an automaker like Honda, which usually dwells on sales figures at the start of the month.
Mendel says Honda doesn't really care grabbing up more of the market, just for the sake of staking it out. "We've never chased market share," he says.
Instead, he says the automaker will continue with its slow-and-steady approach, which it believes will keep customers coming back to the brand. It won't bounce, he says, from one discounting approach.
"Prayer," he says, "shouldn't be your only strategy."
Resource:
Honda defends its sales figures
Honda defends its sales figures
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