Honda Motor Co. disclosed a drop in quarterly profits and cautioned that the shortages in components due to the massive flooding in Thailand will hit production at the company's North American facilities. Company CFO Fumihiko Ike revealed the assessment while Honda pulled its full-year earnings guidance because of the disruptions in supply chain and assembly due to the flood. Ike further stated that they are still assessing the scale of the impact, adding that the situation is "constantly changing."
The new disruptions in supply chain come just when the company and other Japan-based carmakers are trying to go back to full production in the wake of the March 11 earthquake. Toyota has already withdrawn overtime shifts in the U.S. and elsewhere, stating components shortages due to the floods in Thailand.
For the July-September second quarter, Honda recorded a 68 percent decrease in operating profit to 52.5 billion yen or 693 million, generally due to a 14 percent dive in vehicle sales from an earthquake-caused microchip controllers shortage from Renesas Electronics Corp.
The figure was worse than the average estimate of 63.5 billion yen made by 13 analysts as surveyed by Reuters. Net profit declined 55.5 percent to 60.43 billion yen, affected by an 8-yen drop in the dollar from the year before. Second-quarter revenues decreased 16 percent to 1.9 trillion yen.
The 2012 Honda Civic is an all-new version of the brand’s widely popular and internationally iconic line which is now in its ninth generation. Among all compacts in the world, the Civic has earned much love for providing an enjoyable driving experience as well as for its design, sportiness, durability, reliability and fuel economy. As of 2010, as many as 8.8 million people in the US have owned a Civic since its 1973 inception.
Each Honda Civic generation represents an evolutionary step based on a particular development theme. For the 2012 Civic, the theme was that of a "futuristic and distinctive compact," or rather a redirection with new standards that exceed current expectations and requirements, thereby taking the Honda Civic ownership experience up another level. The notable improvements are the overall refinement, better fuel efficiency for all versions, new additional interactive systems for personalised convenience and further performance, ride and cabin upgrades.
Civic customers come from all kinds of backgrounds: young adults fresh out of high school or in college, families with little children, teachers, soccer parents, professionals, performance buffs and environmentally-conscious people. They could be retirees, baby boomers or members of Generation X or Y. They could come from colder states, warmer states, the Midwest or as far as Alaska or Hawaii. But despite this psychographic and demographic diversity, Civic customers share a common trait – being young at heart. Rightly so, because apart from such attributes as style, comfort, durability, safety and economy, the Honda Civic provides great enjoyment.
2012 Honda Civic Model Versions
There has been more and more focus on fuel efficiency, reduced emissions and affordability in the automotive industry for the last 10 years. The Honda Civic has always checked all these boxes as its most noteworthy strengths. 2012 Civic line features six variants, each catering to specific requirements and predilections. Variants range from being extremely efficient to more performance oriented.
Specifically, a Civic HF version offering great value and efficiency has been added. This model has enhanced aerodynamics and has recorded a highway fuel consumption figure of 41 miles per gallon, two mpg over the regular Civic Sedan. This is also the US record for highway fuel efficiency among all automatic gasoline-only compact sedans.