Honda is making s@#tloads!!

[gunpoons]

http://money.ninemsn.com.au/article.aspx?id=8115703
you'd think with all the money they're making they could build us fanboys a new teg,s2000 or nsx hey?

[m0nty]

Honda, which is vying with Nissan to be Japan's number two automaker, said its net profit was up from Y54.0 billion ($A681.78 million) a year earlier.

The company said the brisk performance was mainly due to Japanese government incentives for energy efficient cars and its own cost-cutting efforts, which offset the negative impact of a strong yen.

New vehicle sales in Japan fell 4.1 per cent in September from a year earlier, the first drop in 14 months, as most subsidies for green cars ended

earlier. Honda saw sales tumble 11.6 per cent to 42,653 in September.

It doesn't paint a pretty picture long term due to the strong JPY and export demand dwindling. Profits being up Y54.0 billion isn't anything to report about when you look at previous years results. Especially with such strong Government subsidies. They won't do that forever.

Part of the reason why they have returned profits this year is because they don't have sports cars in their line up. They have been carried by the Japanese Government energy efficient vehicle program.

The last 5 years at Honda have been their worst by a long way. I apportion it to Honda building their cars for the US market. The US market dropped and they found they had alienated themselves from other nations that were still buying cars. Sports cars are always a great indicator on how well a brand is going. Sports cars give very little return. They are a branding exercise that generally run at losses. With cost cutting being a factor it could be years before we see a return to that segment for Honda.

[michaelz]

motorsport develops the technology for sportscars. sportscars are a brand image building exercise. honda has dropped both so of course they're making money building white goods.

honda already has the image of reliability and slightly more prestige over other japanese makers so they couldn't care less about sportscars at the moment.