With sales declining and calls to cut costs increasing, Honda has decided to cancel its appearance at september’s Frankfurt auto show. “Due to the unprecedented market downturn, Honda has come to a conclusion that the company will have to skip its participation to the Frankfurt motor show this year,” the company said in a statement.
Honda has also resorted to dropping out of the F1 circuit as it tries to handle the tough economic conditions of today. I hope the cost cutting’s going to be temporary.
HONDA PRESS RELEASE:
Honda’s participation in IAA 2009
About Honda’s participation in IAA 2009
In response to economic climate, Honda cancels participation in IAA 2009, while strengthening environment and customer focused activities.
* New Fuel Cell research in Europe
* More Hybrid vehicles
* New Honda Academy to strengthen Quality and Customer Service
March 31st 2009 - Honda has announced today that it will not participate in IAA, Internationale Automobil Ausstellung, known as Frankfurt motor show, this year. Due to the unprecedented market downturn, Honda has come to a conclusion that the company will have to skip its participation to the Frankfurt motor show this year.
As seen in the withdrawal from Formula One, Honda is trying to reduce every possible cost in various areas including manufacturing, sales and marketing activities to strengthen its business constitution to overcome the tough climate of today.
Whilst the 4 month shutdown to adjust the inventory balance, Honda’s UK car manufacturing facility in Swindon is taking the full advantage of production suspension to refurbish its plants and prepare for smooth introduction of Jazz into Swindon factory planned in autumn this year.
Honda is the world’s biggest engine manufacturer with 24 million engine powered products sold in 2008 in the areas of automobiles, motorcycles and power equipment, and is committed to swiftly respond to unprecedented situation in the global scale. While vigorously taking on every possible cost reduction measure, Honda is also focusing on research and production of environmentally responsible products.
The Insight Hybrid will be on sale in Germany from April 18th, the hybrid car has already had more than 18.000 customer orders in Japan just in one month, More than 3 times larger than its monthly target of 5.000 units in Japan. Besides that Honda will bring to market a sporty Hybrid based on the CR-Z Concept in 2010 which will be followed by a Jazz Hybrid.
Moreover, Honda will begin a new research project of Fuel Cell technologies in Germany as from autumn this year. This involves permanent deployment of FCX Clarity in Europe, Honda’s sophisticated master piece of hydrogen driven vehicle, which already is on lease sales in the USA and Japan. Honda R&D Europe (Deutschland) GmbH in Offenbach will use the FCX Clarity for long term research of Fuel Cell technology and Hydrogen Energy conformity in European conditions.
Honda will divert the resources for environmentally responsible technology to win the race for Zero Emissions. Furthermore Honda will also realign its forces regarding Service Quality and customer orientation. On March 23rd Germany saw the ground breaking ceremony of the new Honda Academy for Europe at Erlensee near Hanau. This 15 Mil EUR invest is dedicated to train Honda and dealer’s staff in a way that they are able to exceed customer’s expectations also in the future.