Why Honda Projects Record Sales in 2015

Posted by Stephen On Wednesday, January 28th, 2015

At this month’s Detroit motor show, Honda’s Executive VP, John Mendel, predicted that the automaker would break their US sales record by the end of 2015. But it’s not just the US – Honda is taking extreme measures everywhere to revitalize their brand and push their momentum from 2014.

It Starts With New US Models Like the Acura TLX

2015 Acura TLX

One of the biggest ways Honda plans to beat their US sales record is simply by meeting demand for their new Acura TLX. Turns out they’re struggling to keep up with orders. Mendel is even quoted as saying demand for the car is “going gangbusters” in an interview with Columbus Business First in Detroit.

They also kick-started the year with the Acura NSX concept in Detroit, with even more new cars coming to Chicago like a redesigned RDX and the new Honda Pilot. While they’re adding new models to increase sales growth in the US, the Japanese automaker is doing exactly the opposite in Europe…

Honda Accord Withdrawing from Europe

2014 Honda Accord

Leon Brannan of Honda UK recently told Automotive News Europe, “we are running out the accord and we will not return to the segment.”

The jaws of several of our US readers are probably dropping right now, as the idea of Honda removing the Accord from their lineup in any market is near unthinkable. However, keep in mind that the European version of Honda’s midsize Accord is actually our discontinued Acura TSX. That’s the same car that Honda recently replaced with the TLX in the US, but they plan to totally withdraw from the segment in Europe.

Why?

It’s a smart move when you hear the full story.

First, they’ve been losing sales to natively manufactured European models like the Mercedes C class for some time. In fact, Honda UK’s Accord sales fell by nearly 20% in 2014. When you consider that Honda’s total European sales fell 5% last year, it’s easy to see that the Accord is one of the cars dragging down their numbers. Meanwhile, their always-excellence crossovers continue to outsell their European competition.

When you see like that, the change seems obvious – they’re cutting their losses and refocusing on the models that are selling well. The refreshed Honda CR-V is already doing well, and the new subcompact HR-V is also expected to play a part in Honda’s European sales rebounding to record highs by the end of this year.

leave a response, trackback from your own site
Leave a Reply