Honda Reportedly Cuts Production of Two Large Models
By Michelle Krebs July 23, 2008
The U.S. market's crash-dive to downsize appears to have hit even Honda Motor Co. Ltd., one of the few automakers that so far has managed relative immunity from the weakening sales climate largely because of the preponderance of small and fuel-efficient models in its lineup: wire services reported the company plans to reduce production of two of its largest models, the Pilot crossover and Odyssey.
Both models have been strong sellers for Honda, with the Odyssey often held as the segment benchmark. But high gas prices seem to be hurting the minivan segment, with sales down at perennial market volume leader Chrysler LLC and minivan volumes flagging for almost all makers.
The Pilot, a 7- or 8-occupant crossover loosely based on the Odyssey platform, also has fallen victim to industry-wide plunging demand for large SUVs. But in the case of the Pilot, the need to cut production is particularly troubling, as the current '09 model was substantially revised and has been on sale only since late May.
The new Pilot's blocky styling has been widely criticized as uninspired and outdated, and Honda's decision to retain a "traditional" SUV appearance for the Pilot now is particularly magnified as buyers seem openly disdainful of vehicles exuding the appearance of size and bulk. In a recent article, Auto Observer cited Honda's choice of styling direction for the Pilot one of the company's rare strategic miscues.
Honda has billed itself as having one of the industry's most fuel-efficient model ranges, and indeed, the Pilot and Odyssey both have always relied on comparatively efficient V6s that now also feature sophisticated cylinder-deactivation technology to enhance fuel economy. But if the company plans to curb production of the models, it seems proof even Honda's reputation for fuel efficiency cannot offset the perception of large vehicles - including minivans, which long represented one of the market's most stable segments.
LEAVE A COMMENT
I'll be surprised if they don't cut Ridgeline production as well, given the model's meager fuel economy benefits, unattractive styling, and lack of "real truck" capabilities. While it's true that the Pilot and Ridgeline have offered better fuel economy than some traditional sport utilities and pickups, respectively, they don't have enough of an increase to offset the stigma (and reality) of being large, heavy vehicles. The previous generation Pilot offered a single mile per gallon improvement in the city over the current Nissan Pathfinder, a much more capable vehicle. It seems as though Honda hit the sweet spot of failure with the new Pilot: it offers fuel economy equal to or only marginally better than traditional suvs, but with much less capability and the baggage that comes with being a Honda crossover. Consumers who actually want suv capability won't buy the Pilot while those who like having capacious vehicles but want better fuel economy are turning to more rounded, curvaceous wagons like the internal competitor CR-V, Ford Edge, or even the Lambda quadruplets. These are people who a few years ago probably were shopping Explorers, Tahoes, and Expeditions as status symbols but who now want to shift with the current opinion to more fuel efficient, less trucky vehicles, as you have said.
As for the minivan production, the Odyssey, good as it is, cannot be something it is not. The minivan market is not doing well, and although they offer far more space and functional utility for the average city user than suvs and other crossover wagons, they don't really offer fuel economy benefits. One of the main problems is, as with nearly every other vehicle on the U.S. market, the weight of current minivans like the Caravan, Sienna, and Odyssey. These are large vehicles in the 4,000 pound and above range that have large V6 engines: the physics themselves only allow so much. Hence, why the mildly redesigned Mazda Mazda5 is selling so well this year: it offers an immense amount of room in a smaller, lighter (though still not light) package with a small I4 engine that allows it to achieve decent gas mileage. Honda is certainly capable of building spacious, fuel efficient vehicles (the Fit is a prime example), but they have fallen victim to the whims of the fickle American consumer by trudging down the path of bigger, more powerful, and faster vehicles. The Pilot, Ridgeline, Odyssey, and new Accord are all demonstrative of this approach. Until Honda can set its Pilot and Ridgeline apart as distinctive - beyond ugly and useless, those really aren't traits you want in a vehicle - they will continue to flounder. The Odyssey is a tougher case, but it may be time to redesign it smaller, but market it as more capable and efficient so as to assuage consumers' fears.
They don't need to cut production on the Ridgeline before they touch the Odyssey. People are still buying the Odyssey.. Ridgeline should have a little 4 cycl. and smaller in size to complete with the Tacoma.
ADD A COMMENT