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2012 Civic Sales Up 45% To Start The Year As Gas Prices Rise
Honda Motor Co. 2012 Civic, stung by critical reviews and tight U.S. supply in 2011, has outsold rival small cars and the company has enough “ammunition” to hold the spot, an executive said.
U.S. sales of Civic sedans and coupes rose 45 percent to 48,970 in the year’s first two months, ahead of Toyota Motor Corp. (7203)’s Corolla, a perennial challenger, and General Motors Co. Cruze. After supply disruptions last year, Honda now has enough North American capacity to make Civic the top-selling compact, even if that isn’t a target, said Tetsuo Iwamura, chief operating officer for North America.
“When competitors shoot at the Civic, we’ll have enough ammunition to shoot back,” Iwamura said in an interview yesterday at Honda’s U.S. headquarters in Torrance, California. “We don’t talk about No. 1 as a goal. Always we think about having very good acceptance and high customer satisfaction.”
The car that’s been the core of Honda’s U.S. business since 1973 hasn’t led compact sales since 2002. Civic trailed both Corolla and Cruze last year, according to Autodata Corp., a Woodcliff Lake, New Jersey researcher. A year after an earthquake and tsunami damaged Tokyo-based Honda’s parts supply base and engineering center in Japan, the carmaker has ratcheted up North American output of the model 69 percent to regain sales in the U.S., its biggest source of revenue.
Honda made 84,678 Civics at plants in Canada, and Indiana in the first months of the year, up from 50,056 in the same period a year ago. Production of all Honda and Acura cars and light trucks in North America jumped 36 percent to a record 301,564, according to the company.
Fuel Prices
The average price for a gallon of regular unleaded gasoline has increased 16 percent this year to $3.81 as of March 12, according to AAA, the largest U.S. motorist group. The Civic coupe has a starting price of $15,605 while the sedan’s price starts at $15,805, according to researcher Edmunds.com.
Uncertain Future
The outlook for Civic beyond July, when fuel prices may ease, will depend on updates of the car Honda plans to make to address some criticisms and competing models including Hyundai Motor Co. (005380)’s Elantra, Toprak said. “Hyundai, in particular, has shown that it has the ability to replicate the kind of success seen with Honda and Toyota a generation ago,” he said.
Even with some unfavorable reviews for the current Civic, the car continues to attract the buyers competitors seek, said Alexander Edwards, president of the automotive division of Strategic Vision Inc., a San Diego-based consumer-research firm. Within the small-car segment, Civic is “still grabbing a younger, somewhat wealthier crowd,” Edwards said. The median age of its buyers is 45, compared with a segment average of between 49 and 50 years old, he said.
How Competitors Fare
Volkswagen AG (VOW)’s Jetta draws a younger customer, with a median age of 41, because of its cheaper base price and Hyundai’s Elantra matches Civic with a median buyer age of 45, said Edwards, whose firm surveys 300,000 people a year for its automotive studies. Jetta’s starting price is $15,515, according to Edmunds.
The average Corolla buyer is 49, while the median age for customers of Ford Motor Co. (F)’s Focus is 53 and Chevrolet’s Cruze is 58, Edwards said.
Honda’s problems last year didn’t keep it from a top- ranking spot in terms of brand consideration, with 50 percent of people in the market for a new car saying they’d consider it, Edwards said, citing Strategic Vision data.
Inventory had a bigger impact on Civic sales last year than Consumer Reports’ review, said Iwamura, 60, who becomes Honda’s executive vice president on April 1 and will continue to lead North American operations. “I accept their criticism very sincerely, but yet believe we’ll be able to make them once again a strong fan of the Civic,” he said.
Honda Motor Co. 2012 Civic, stung by critical reviews and tight U.S. supply in 2011, has outsold rival small cars and the company has enough “ammunition” to hold the spot, an executive said.
U.S. sales of Civic sedans and coupes rose 45 percent to 48,970 in the year’s first two months, ahead of Toyota Motor Corp. (7203)’s Corolla, a perennial challenger, and General Motors Co. Cruze. After supply disruptions last year, Honda now has enough North American capacity to make Civic the top-selling compact, even if that isn’t a target, said Tetsuo Iwamura, chief operating officer for North America.
“When competitors shoot at the Civic, we’ll have enough ammunition to shoot back,” Iwamura said in an interview yesterday at Honda’s U.S. headquarters in Torrance, California. “We don’t talk about No. 1 as a goal. Always we think about having very good acceptance and high customer satisfaction.”
The car that’s been the core of Honda’s U.S. business since 1973 hasn’t led compact sales since 2002. Civic trailed both Corolla and Cruze last year, according to Autodata Corp., a Woodcliff Lake, New Jersey researcher. A year after an earthquake and tsunami damaged Tokyo-based Honda’s parts supply base and engineering center in Japan, the carmaker has ratcheted up North American output of the model 69 percent to regain sales in the U.S., its biggest source of revenue.
Honda made 84,678 Civics at plants in Canada, and Indiana in the first months of the year, up from 50,056 in the same period a year ago. Production of all Honda and Acura cars and light trucks in North America jumped 36 percent to a record 301,564, according to the company.
Fuel Prices
The average price for a gallon of regular unleaded gasoline has increased 16 percent this year to $3.81 as of March 12, according to AAA, the largest U.S. motorist group. The Civic coupe has a starting price of $15,605 while the sedan’s price starts at $15,805, according to researcher Edmunds.com.
Uncertain Future
The outlook for Civic beyond July, when fuel prices may ease, will depend on updates of the car Honda plans to make to address some criticisms and competing models including Hyundai Motor Co. (005380)’s Elantra, Toprak said. “Hyundai, in particular, has shown that it has the ability to replicate the kind of success seen with Honda and Toyota a generation ago,” he said.
Even with some unfavorable reviews for the current Civic, the car continues to attract the buyers competitors seek, said Alexander Edwards, president of the automotive division of Strategic Vision Inc., a San Diego-based consumer-research firm. Within the small-car segment, Civic is “still grabbing a younger, somewhat wealthier crowd,” Edwards said. The median age of its buyers is 45, compared with a segment average of between 49 and 50 years old, he said.
How Competitors Fare
Volkswagen AG (VOW)’s Jetta draws a younger customer, with a median age of 41, because of its cheaper base price and Hyundai’s Elantra matches Civic with a median buyer age of 45, said Edwards, whose firm surveys 300,000 people a year for its automotive studies. Jetta’s starting price is $15,515, according to Edmunds.
The average Corolla buyer is 49, while the median age for customers of Ford Motor Co. (F)’s Focus is 53 and Chevrolet’s Cruze is 58, Edwards said.
Honda’s problems last year didn’t keep it from a top- ranking spot in terms of brand consideration, with 50 percent of people in the market for a new car saying they’d consider it, Edwards said, citing Strategic Vision data.
Inventory had a bigger impact on Civic sales last year than Consumer Reports’ review, said Iwamura, 60, who becomes Honda’s executive vice president on April 1 and will continue to lead North American operations. “I accept their criticism very sincerely, but yet believe we’ll be able to make them once again a strong fan of the Civic,” he said.
2012 will bring many many more!