Tuesday, July 30, 2013

Honda thumbs nose at fleet sales, claims it leads in key vehicle segments

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Honda Leads All Automakers in Retail Sales in Key Volume Segments

Accord, Civic, CR-V and Odyssey tops in respective segments year-to-date

07/29/2013 - TORRANCE, Calif.

-Accord, Civic, CR-V and Odyssey rank #1 in retail sales in their respective segments, according to latest Polk data

-Honda brand sales of 668,597 up 6.5 percent year-to-date through June

-More than 98 percent of brand sales to retail customers, protecting resale values; many competitor brands exceed 20 percent in fleet sales

Honda topped all mainstream automakers in percentage of sales to retail buyers during the first five months of 2013, with more than 98 percent1 of the brand's auto sales in the U.S. sold to individual (non-fleet) consumers, based on new-vehicle registration data from R.L. Polk & Co. With a strong focus on providing long-term value and low cost of ownership to its customers, the Honda brand has increased sales by 6.5 percent in 2013 with 668,597 Honda cars and light trucks finding new homes through the end of June.

Honda's four best-selling models, Accord, Civic, CR-V and Odyssey, lead their respective segments2 in sales to retail consumers. Together, these segments represent more than 50 percent of all light-duty vehicle sales in the United States.

"We're earning our sales growth on the strength of our products and the value they deliver to individual car buyers," said John Mendel, executive vice president of sales for American Honda Motor Co., Inc. "Our strategy is unique among volume automakers, as we are focused on selling vehicles to individual car buyers and not corporate sales to fleets, which is why Honda vehicles have among the lowest cost of ownership and highest resale values in the industry."

In the highly competitive mid-size segment, where Accord leads retail sales, many high-volume entrants have sold in excess of 30 percent1 of their vehicles to fleet customers thus far in 2013 while over 98 percent1 of Accords were sold to individuals (non-fleet). The 2013 Accord is the most-awarded3 mid-size car when it comes to value. "Honda continues to deliver on the promise that made them the Residual Value Award recipient for 2013," said Eric Lyman, vice president of Editorial for ALG.

"Honda keeps incentives and fleet penetration low - two actions that heavily impact future values. With high volume models like Accord and CR-V at the top of their respective segments, Hondas hold their value better than any other brand."

According to Honda analysis of Polk new-vehicle registration data, more than 19 percent1 of light-duty vehicle industry sales so far this year have been to non-retail customers such as rental-car companies, corporate and government fleet operations, most at steeply discounted prices compared to the average retail transaction price. Discounts on large volumes of vehicles can have a long-term negative impact on the residual or resale values of vehicles purchased at retail. This effectively increases the cost-of-ownership for retail buyers when they eventually sell or trade-in their vehicles.

About Honda

Honda employs more than 33,000 associates in North America, and has invested more than $22 billion in R&D, sales and manufacturing operations in the region since 1959. Honda now operates 14 major manufacturing facilities in North America, producing a wide range of Honda and Acura automobiles, engines and transmissions, Honda all-terrain vehicles, and power equipment products, using domestic and globally sourced parts. Over 90 percent of Honda and Acura automobiles sold in the U.S. during 2012 were produced in North America.

News Source: Honda

Image Credit: Copyright 2013 AOL

Category: Car Buying, Honda, Earnings/Financials

Tags: fleet sales, honda, honda accord, honda civic, honda cr-v, honda odyssey, retail sales


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