Autotelegraaf is reporting that Honda will be bringing the near-production NSX concept to Detroit in 2009. Apparently, their reporters did not do a great deal of fact checking.
On Honda's British web site, a summary of CEO Takeo Fukui's end of the year speech is available. Under the "R&D" section, the wrap-up clearly states, "The development of the NSX successor model equipped with V10 engine will be cancelled."
In his speech, Fukui indicated that the current state of the economy has forced the company to take a fresh look at their priorities. Since Honda will substantially allocate resources for energy efficiency and green technology, a 600 horsepower supercar may no longer fit into their plans.
Perhaps they will introduce the Honda / Acura NSX with a different engine. However, that could conflict with CEO Fukui's vision of a car that is better and faster than the Nissan GT-R.
The full press release from Honda is below. Mention of the NSX is at the top of page 2.
Autotelegraaf reporters believe the Japanese manufacturer may debut a Honda or Acura NSX production model at the end of 2009 during the Tokyo Motor Show. Sadly, this looks like wishful thinking.
We can't blame Autotelegraaf for dreaming. We hope Honda revives the NSX, too.
[UPDATE - Translation Correction] AutoTelegraaf wrote that Honda decided to cancel the NSX at the last moment. They were already working on a concept for the Detroit Motor Show 2009. The production version was planned for october 2009.
TOKYO, Japan, December 17, 2008 – The abrupt change involving the global automobile industry from mid-September of this year that was triggered by the financial crisis, forced all the automakers to change various plans over a very short period of time. The situation is worsening day by day and is showing no sign of recovery.
Despite this severe business environment, Honda has been able to introduce its advanced environmental technologies to its customers in the form of products such as the FCX Clarity fuel cell vehicle and the all-new Insight hybrid vehicle.
Facing an urgent need to address the sharp sales downturn, production adjustments have been made starting from the latter half of this year in North America, Europe, and Japan to maintain appropriate inventory levels. Honda has further decided to make an additional production adjustment of 54,000 units of automobiles in Japan during the current fiscal year.
Revised forecast for consolidated financial results for the fiscal year ending March 31, 2009
At the board of directors meeting held today, Honda resolved to amend the forecast of consolidated financial results for the fiscal year ending March 31, 2009, which was last announced October 28, 2008.
New forecasts are; net sales and other operating revenue: JPY 10,400 billion (-13.4% from previous fiscal year), operating income; JPY 180 billion (-81.1%), income before income taxes: JPY 190 billion (-78.8%), equity in income of affiliates; JPY 125 billion (+5.1%), net income: JPY 185 billion (-69.2%), basic net income per common share: JPY 101.95 (-69.2%).
The forecast for the fiscal third quarter dividend is 11 yen per share. The payment of the year-end dividend per share of common stock has not been decided yet. The year-end dividend will be proposed upon consideration of its consolidated financial results for the fiscal year ending March 31, 2009 and forecasts for consolidated financial results for the fiscal year ending March 31, 2010.
Unit sales forecasts are: motorcycles: 10.3 million units (+10.5%), automobiles: 3.65 million units (-7%), power products: 5.185 million units (-14.4%).
Estimated CY2008 Worldwide Sales
Motorcycles: 15.12 million units (up 12 % from 2007)
Automobiles: 3.77 million units (100% of 2007)
Power Products: 5.67 million units (down 7% from 2007)
Motorcycles
Even in the growing motorcycle markets in emerging countries in Asia and South America, overall motorcycle sales experienced a slowdown in the latter half of the year due to the impact of the credit crunch.
Asia Oceania - Motorcycle
2008 sales forecast: 11.042 million units (up 15% from 2007)
South America – Motorcycle
2008 sales forecast: 1.732 million units (up 13% from 2007)
Automobile
- The situation is worsening every day in all regions.
U.S. – Automobile
- The overall market declined quickly after the financial crisis.
- 2008 sales forecast: 1.43 million units (down 8% from 2007)
South America – Automobile
- The overall market is declining since the latter half of the year due to the impact of the credit crunch
- 2008 sales forecast: 157,000 units (up 34% from 2007)
Europe – Automobile
- The financial crisis has accelerated involving growing markets in Eastern Europe and Russia.
- 2008 sales forecast: 380,000 units (up 1% from 2007)
Asia – Automobile
- Strong sales of the all-new City are contributing positively to overall sales, however, we have begun to see the impact of the global economic crisis in this region as well.
- 2008 sales forecast: 367,000 units (up 7% from 2007)
China – Automobile
- 2008 sales forecast: 478,000 units (up 12% from 2007)
Japan – Automobile
- 2008 sales forecast: 622,000 units (100% of 2007)
Power Product
- 2008 sales forecast: 5.672 million units (down 7% from 2007)
Direction and challenges Honda must undertake
The mid- to long-term challenges Honda must undertake to succeed in this severe economic environment and continue growing have not fundamentally changed:
1) Advancement of our global production system and capabilities with a central focus on Japan due to its leader function
2) Creation of fuel efficient products that reduce our environmental footprint, which Honda has been continuously pursuing since the establishment of the company
3) Further advancement of our motorcycle business, which is the origin of Honda
Maintaining a long-term viewpoint, Honda undertakes these challenges in preparation for future growth.
At the same time, new actions must be undertaken. In order to minimize the impact of recent changes in the business environment on the company’s earnings and to focus fixed company resources on necessary areas, all investments and development projects will be reassessed from scratch and prioritized.
Toward this end, Honda will closely monitor the marketplace and then carefully determine what actions need to be taken. Once decisions are made, Honda will take quick action as the company realizes the situation is very urgent and a slight delay in making management decisions could be critical.
Based on this understanding of the situation, bonuses for directors, corporate auditors and operating officers will be reassessed based on the business results of the current fiscal year ending March 31, 2009. In addition, monthly remuneration of directors, corporate auditors and operating officers will be cut by 10% for all directors starting January 2009.
Actions to be undertaken
- Honda will reassess the priorities of all investment/development projects.
Reassess new production facilities and capacity expansions
- New auto plant in Yorii: The start of operations, initially scheduled for 2010, will be delayed more than one year.
- New engine plant in Ogawa: Starting July 2009 as originally planned, the production will begin in stages. The plant will initially be responsible for casting and machining processes and supply engine components to auto plants in Japan and regions outside of Japan.
- New mini-vehicle production plant at Yachiyo Industry’s Yokkaichi Factory: The start of full-scale operation, initially scheduled for 2010, will be delayed a little more than a year.
- Regions outside of Japan: Expansion of automobile production capacity in some countries including India, initially scheduled for 2010, and Turkey, initially scheduled for mid- 2009, will be delayed considering the current market situations.
- While making global production adjustments, Honda will make a thorough effort to mature its flexible production system to establish a company structure which enables Honda to get through anticipated future changes with minimal impact.
- Production of the Stream will be transferred from Suzuka Factory to Saitama Factory starting January 2009.
- Production of the U.S. and Canada version of the Honda Fit will also start in Saitama Factory from spring in 2009 in addition to production in Suzuka Factory.
Sales
- In Japan, where demand has shifted toward small-sized vehicles including mini-vehicles, Honda will strengthen its Honda Cars sales network. Meanwhile, considering the recent changes in the business environment, Honda decided to withdraw its prior plan to introduce the Acura brand in the Japanese market around 2010.
paula1105
December 31, 2008 1:39 PM
