Comment – Honda's struggles in Europe
Source : Comment – Honda's struggles in Europe
Honda’s European sales have been in decline since 2007; can one third of the Japanese ‘big three’ turn the item around?
If you at Honda’s global sales record over the past 15 years, the item’s one of solid progress. Producing a relatively modest 2.25 million cars in 1999, Honda expanded steadily to 3.9m sales in 2008, at the point of the global credit crunch.
the item lost a million sales in 2009 although bounced straight back to a healthy 3.59m in 2010. Like some other Japanese car makers, Honda was affected badly by the east Japan earthquake as well as tsunami as well as sales dipped back to 2.89m in 2011.
although 2012 was surely a vintage year for Honda. the item sold 4.08m cars, a singleyear rise of 1.1m units. The company shifted 4.5m cars last year as well as banked a healthy pre-tax profit of £4.24bn in 2014-2015.
Honda’s big area of failure has been Europe. Its Swindon plant was at capacity in 2008, doing 230,000 cars. which collapsed to just 75,583 units in 2009, leading to one of the two production lines being closed. The Japanese earthquake resulted in a shortage of parts for all Honda plants in 2011, Swindon’s output dipping to 97,000 units.
Swindon produced only 0,000 units last year as well as Honda sold just 132,000 cars in Europe, a market share of 1%. Honda thinks the item can pull itself back inside the UK although admits which markets such as Germany as well as France remain strongly Honda-resistant.
although with mainstream profit margins in Europe so slim, maybe Honda doesn’t need to lose too much sleep about the European market.
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