Honda forced to shut down 3 MORE car factories as demand collapses

I've owned 3 Hondas, and they were all good, low cost, decent looking vehicles. Every Honda on the market today is ugly and overpriced. They also removed the Honda Fit from the North American market, which was such a moronic decision. Car manufacturers need to sell low-cost, small vehicles that get excellent gas mileage. They finally release a Fit hybrid and don't sell it to North America!? So disappointing.

I'm old enough to see the rise and boom of Honda/Toyota/Nissan and Sony/Panasonic/Sharp in the 80s. i literally witness the Japanese electronic industry decline in North America from 2010s to 2020s. Guess another decline of their automative industry is happening, might not be that fast in North America, but will see once BYD opens their plant in Mexico

The problem is prices too high for what is basically a tool to transport you. All the bells and whistles, sensors and computers have effectively turned autos into a disposable driving phone. Now prices need to reflect this new reality.

$60k Aust dollars for a standard normal Civic sedan, are you joking. No wonder no one is buying their cars!!!

#IWasTodayYearsOld when I learned Toyota had an EV... In 1997! RAV4 with... 95 miles range! Really #DroppedTheBall!

After owning two Civics, a Prelude, an Accord and a Ridgeline, I really hate to see this happen. But I love my Tesla Model 3LR/FSD. I will never buy a gas car again.

Living in Norway, you can really feel what's comming. The gasoline sale is down 7,5% and diesel down 10,5% from the same mounth in 2023. In a 4 year periode the sales is down 50%. The energy stations (former gas stations), are removing gas/diesel pumps. Some are putting in chargers instead. The only reason that some of them don't remove the gas/diesel pumps all together, is because of the costs of removing the tanks in the ground. Getting 98 (E5-10?) octane is getting really hard. 95 E10 is the only standard in 75% of the stations. If this is happening in Europe and the world, I think you need to convert to flex fuel if you plan to keep the gas guzzler. The farmers have invested in ethanol. So, when the fuel sale decrease, you need to put more ethanol into the gas. That's E25 or more. Most cars can't run on that. The forcast is that Norway will have 50% EV's (NOT Including fossil cars with big batteries) on the road in 2030. Already today the station companies have plans of getting rid of a big number of stations. So, I also think that if you need fuel, it's time to start making your own moonshine....🌛

I view Autos as a commodity, and not willing to pay excessive amounts for spare parts, for example.

Get it right.Honda closed their UK factory several years ago,not because of Brexit, but to re-read in Japan.

I had a CRV it was nice but it was surprisingly a gas guzzler and was making me broke. Traded it in for a Prius and it gave me the freedom to afford to drive wherever. Now with my Tesla it costs me $4.90 us to drive 300+ miles 🙌🏼

The NUMMI plant in Fremont was sold to Tesla by Toyota, not Honda. It was originally a joint venture between Toyota and GM, which ended when GM went bankrupt.

Everyone's overcharging for basic cars that were twenty to thirty percent less two years ago

It's a strategy, sell fewer but more expensive cars.

We have had 3 Honda Jazz cars, and wanted to buy a new one, but Honda are not importing Jazz/Fit into Australia so we sold our oldest Jazz and bought a second hand 2020 model. We did not consider any other car, the Jazz is just such a great design that allows it to fit a lot of music gear into the back with the seats folded down flat. Japanese makers know how to make great cars!

Prices of new cars are too high. China is the only country making affordable cars.

Hondas are now too expensive.

An asset is anything that provides future benefits to the owner. A factory is an asset because of its ability to produce car for sale. Copy right of a bestselling novel is an asset because it generates royalty income in the future. If you have a factory making gasoline power cars that are losing sales volume and market share and has no hope of changing, the value of that factory goes down. Why can Honda keep the value of their factories unchanged? Their auditors allow them to do so. Auditors are paid by the companies they audit. So, Honda can bring pressure on their auditors to keep the value of those factories unchanged for a while. The issue is whether the decline in value is temporary or permanent. If you are in a business cycle and sales declined, it is not reasonable to ask the company to write down the value of such major assets. The transaction would be hundreds of millions of dollars. What if sales go up next year? Temporary or permanent decline in value? That is a judgement call. Since the growth of the electrical vehicle market has been explosive in the last several years, Honda could argue that the decline in value of their factory is temporary. There is a limit as to how long a temporary decline can be, before it becomes permanent, even if the factory is still working half time. When a factory closes, it is a write off. The book value of that factory goes to zero. The other side of the transaction is an expense. There goes the profit of that year. Not only that. All payments of all uncancelleable contracts related to that factory must be expensed in the same month. If Honda signed a two year contract with a landscaping company, they need to expense two years worth of payments to that landscaping company immediately because the services of that landscaping company will provide zero benefit to Honda in the future. The same rule applies to other suppliers, consultants, cleaning companies, senior managers who has a contract with Honda. That day will come when temporary decline in value of the factories becomes permanent, if Honda sales keep going down.

They have priced themselves out of the car market. More car manufacturers are following this trend soon.

México is reciveing a tidal wave of Chinese cars they don't stop coming, brands like Neta, Exceed, Jacoo, Baic, etc...

Battery plant construction put on hold in Canada, as contracts from automakers are cancelled. Declining demand is hurting car industry world wide.