Hey I guess Honda doesn't have any business sense
10-26-2006, 04:52 PM
#21
Originally Posted by kumainu,Oct 26 2006, 03:24 PM
A few years ago, Honda OFFICIALLY (from the horse's mouth) said it was losing money on every Insight and S2000 sold. But the loss wasn't substantial so they kept building the cars that served their purposes.
10-26-2006, 09:25 PM
#23
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Originally Posted by aklucsarits,Oct 26 2006, 11:17 AM
It certainly would not surprise me if the S2000 was initially selling at a net loss to Honda for the first few years. But I'd have to think that they should be back to at least break-even on it by now, in its 6th full model year...
Honda was selling the Insight at a rather large net loss. And I think the Civic Hybrids are also still loss-leaders.
Andrew
Honda was selling the Insight at a rather large net loss. And I think the Civic Hybrids are also still loss-leaders.
Andrew
:-)
To replace the '94 Accord my wife rolled five days ago.
10-27-2006, 08:08 AM
#25
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Originally Posted by aklucsarits,Oct 26 2006, 06:07 PM
Look at it from another marketing angle - Honda sells the Insight hybrid as the most fuel efficent car in US at steep losses. They also sell the Civic hybrid as a loss leader too. But as a result, Honda is seen as an environmentally conscious company. They can also advertise their model lineup as getting the best fuel economy in the industry. Even though Honda looses money on those hybrids, they are getting some value out of that loss in the form of good press and public goodwill about being an environmentally friendly automaker. Honda become THE fuel efficient car maker in the public's mind
Andrew
Andrew
It's just another form of publicity and brand awareness.
10-27-2006, 08:51 AM
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Originally Posted by Saint_Spinner,Oct 26 2006, 10:22 AM
This is not uncommon in the automotive industry. NSX, Viper, Carrera GT, Ford GT, heck even the srt-4 are not meant to be profit makers. In fact they sometimes lose money selling these cars. What they are selling is image, not the car.
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc. The Halo cars are often more of an advertising tool for the rest of the line up.
Same applies to video game consoles....companies such as Microsoft and sony lose money everytime they sell a console. But its made up ten fold by the games the customer buys.
Many buyers pick up neons because its accosiated with the same company that produces the Viper...same thing goes for Civics and Altimas and etc. The Halo cars are often more of an advertising tool for the rest of the line up.
Same applies to video game consoles....companies such as Microsoft and sony lose money everytime they sell a console. But its made up ten fold by the games the customer buys.
Definitely just a marketing thing---Honda was long known as an econobox manufacturer, which is why they initially launched the Acura line - to shed the Honda image and penetrate the more upscale markets.
The s2000 is just there to associate Honda's racing heritage w/ the brand.
10-27-2006, 09:41 AM
#28
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I also remember reading something about the NSX...including ALL the NSX sold, they still haven't recovered the original cost of the R&D than went into it. But it sure put Honda/Acura on the map.
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