I didn't pay that much attention to the reasons in 2009, but when I was at the dealer today for inspection and oil change, one of the techs said it was because it became too expensive to produce and that Honda should have charged more for the car originally. I thought it was because it was a niche car and the demand was no longer there. Wonder what the markup would have been? I'm certainly glad I got both of them for the cheaper price. He said it was one of the best cars ever made. x 1000.

 

You are right and he is wrong. Consider this:

In a presentation by Hiroyuki Yoshino, CEO & President, Honda Motor Co at the 1999 Automotive Management Briefing on August 4, 1999 stated “. . . I don't want you to think the Small Born concept applies only in developing nations. The plant in Japan where we produce the Acura NSX and the new S2000 sports car is a Small Born Plant –– as we produce profitably, at a relatively low volume. The new S2000 will debut in the U.S. this fall -- with an advanced new engine that achieves very high performance, yet is a low emission vehicle. And the S2000 will be sold at a relatively low price. The efficient Takanezawa Plant is the key -- producing just 100 units per day on two shifts, (and) the S2000 line is already profitable after less than six months of production.”

Following an announcement in 2003, Honda transferred production from the small Takanezawa Factory and moved the entire facility to Suzuka Factory in May 2004. Honda said this was done to integrate production, with the engine assembly to the completed vehicle being performed in one location. However, insiders say is was also due in part to the lack of interest in the dated NSX which ceased production at the end of 2005 and necessary to free up space at Tochigi to produce more compact, alternative-fuel vehicles.

A group of European’s visited the Suzuka plant during the final month of S2000 production. Here is one of their comments, “the visit at Honda was a great experience, we received an exclusive S2000 cap (not for sale by Honda) as a gift and we walked the complete body shop and assembly line. All questions were answered and we experienced the passion of the Honda workers who make our wonderful car. The assembly line is quite conservative, with no more then 15 cars assembled per day, this means a lot is assembled by hand, which makes our car even more exclusive then it all ready is. The line next to the S was filled with white civic type R's on a much more automated line... will never forget the view of S2000's and Civic type R's being build next to each other...”

 

I believe it's the accountants that determine what a corporation decides to produce. I remember hearing at the honda dealer that the Insight cost more to produce than what they were selling them for. Yea right. I have a bridge for sale in Brooklyn.

In the end it's money that is the driving force. The market for the S2000 collapsed. Look at the sales figures. The market was limited as the S2000 wasn't produced with an automatic and or paddle shifters.

Glad I own one.

fltsfshr

 

At that time Honda did not have the stomach to produce low volume sports cars, and it had everything to do with profits. We have been seeing the effects of that policy for the last 10 years at Honda, things may be changing a bit now though, crossing my fingers.

 

No company stops making products they can sell at a profit... Unless they can make even more money or the government tells them they gotta stop! Whether or not Honda really made a profit on the S2000 is a reasonable doubt but they say they did. I have doubts the development costs were really recouped. Production costs maybe. The S2000 and NSX were vanity cars for Honda, cars to promote the Brand. There doesn't seem to be such a Honda now. I suspect the production facilities were more profitable making something else.

Dealers, the real customers, have much of the final word on this. If they're buying the cars (they're the real customers) the factory will continue to make them subject to the first paragraph. Dealers probably got "above sticker" prices at first. If dealers were asking for automatic transmissions I'm sure Honda could have accommodated them but that may have changed the "profit" margin.

I'm personally more than happy the S2000 is out of production -- and parts are still available from many sources. I know I'm taking better care of her than any other car I currently I have. Rarity is fun too and I've not seen another one (other than a buddy's) on the road in months and folks constantly ask me what it is. If Honda comes up with another roadster I hope they rename it.

-- Chuck

 

Deb, to reinforce what I already said, that you were right:

Honda Press Release, January 26, 2009:
“2009 Will Be Final Model Year of Production for Honda S2000.”
Segment-defining roadster won numerous accolades during its 9-year run.
The 2009 Honda S2000 will be the final model year produced of the award-winning roadster, Honda announced today. First introduced in 1999 for the 2000 model year, the S2000 helped define its segment with class-leading handling, engine technology and value. Originally envisioned as a limited-edition tribute to Honda's 50th anniversary, S2000 production was extended in response to customer demand and critical acclaim.
"The S2000 is a sports car designed by enthusiasts for enthusiasts," said John Mendel, executive vice president of American Honda Motor Co., Inc. "It raised the bar for all future roadsters, and it's already considered a classic by many Honda fans."
As a true sports car that can serve as a practical and fun daily driver yet feel equally at home on a racetrack, this concept further evolved with a club racer-inspired S2000 CR trim, first offered in the 2008 model year. The S2000 has been honored with multiple awards through the years, including four appearances on Car and Driver Magazine's coveted "10-Best" list.
The S2000 is sold in 64 countries around the world with cumulative world-wide sales of over 110,000 since its introduction in 1999. Over 65,000 S2000s have been sold in the United States since 1999. [end of press release)

My thoughts -

In March 2002 Honda announced its target for US sales was 8,000 cars per year. Prior to that sales in the US had been nearly 10,000 for the model years 2000-2002. For the next three years they were just short of their goal with sales in the mid-high 7,000's. By 2006 age was creeping in. That’s usually as long as most new models go without a total make over. That year sales dropped to 6,300 and the following year to 4,300. 2008 sales rang up only 2,500. It had a great run but it was clearly over.

 

Seems to me perhaps due to the financial woes of those years, interest in affordable sports cars suffered as non-billionaires either opted for more "practical", used, or no vehicles at all. The populace have been keeping their cars much longer now, not only because of the unaffordability of new ones but due to the fact they just last longer. Honda would have needed a sizable capital investment to bring the S2000 "up to date"...dual-clutch automatic, turbo, navigation, rain-sensing wipers for those too oblivious to sensing rain on their own, etc. etc. It would have cost $60K too. I totally agree that like with a lot of performance and sports cars, retaining the older, simpler ones is just fine. I've recently gotten my second S2000 (an '05) and it is amazing how much attention it gets, like my original '01 did in many ways. And DAMN, it still goes well, doesn't it?

 

Bingo, I think we have a winner! Bob M. very well stated.

 

You are too kind ....I am blushing.

 

They stopped making them because they couldn't sell them. Simple as that. Sometime in 2009 or 2010 I had a discussion with the sales manager at Joyce Honda (he also happens to be the owner's son in law). I've become very friendly with him over the years. He told me that the S2000 simply wasn't selling and as a matter of fact he had a brand new CR that he couldn't sell.

I could never figure out Honda's strategy. I don't understand why they come out with a car, run it for 10 years virtually unchanged and then discontinue it. I'd have thought that they'd do something similar to what Mazda has done with the Miata, that is to renew it every 5 or so years to keep the model new and fresh. It would seem to me after investing time, money and reputation into a model and model name they'd want to get some mileage out of their investment.

I don't think Honda would have had to make a major investment, they already had a platform to build on. Nor would an second generation S2000 have had to cost $60,000. I think Honda could've renewed the model and rejuvenated its sales at a selling price of $38,000 to $40,000. Part of the problem is that Honda lost it's focus, and part of the problem is their strategy of running models until they stop selling and discontinuing them.