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Honda model restructure worse than thought

By Matt Brogan |

The restructuring of Honda’s new model programme that led to the death of the new Honda NSX is much more extensive than previously thought. Honda is completely dismantling its plans for the next two years as it attempts to deal with the rapid collapse in new car sales across the world.

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Among the casualties of Honda’s rethink are a range of rear-wheel-drive cars to be sold under the Acura brand, a proposed V8 engine, a successor to the Honda S2000 and a convertible based on the forthcoming Honda CR-Z coupé.

Acura, Honda’s US-market luxury rival for Infiniti and Lexus, has been hit hardest by the changes. Not only has it lost the NSX successor — due to be branded as an Acura but killed off last month — but the program to develop new rear-drive cars aimed specifically at the BMW 3, 5 and 7 Series has also been canned.

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The basic planning on the cars had been carried out, and the first model to enter production was to be a BMW 7 Series rival, due in 2015. It was meant to provide Honda with a credible alternative to established premium rear-drive brands. The future of the next Honda Legend is also in doubt.

Development of a new V8 engine for the rear-drive cars has also been stopped. The new Honda V8 was seen as the wrong engine at the wrong time, and it was opposed by some Honda engineers who viewed it as too big, heavy and unnecessary. Honda product planners have also had trouble figuring out how to make the engine cost-effective.

It’s not just big cars and big petrol engines that have been wiped out. The proposed drop-top version of the new Honda CR-Z hybrid coupe has been abandoned, along with any successor to the Honda S2000, which will die this year.

 honda_s2000_cancelled_001.jpg

The current pair of Honda Accords (one for the US, one for the rest of the world) could also be replaced with a single model; that could save billions in development costs.

Honda is now concentrating on building more hybrids and a new small city car. It aims to build 500,000 hybrids by 2012, including the new Honda Insight and the world’s first hybrid supermini, a petrol-electric Honda Jazz due next year. It should be capable of 80mpg and emit just 90g/km of CO2.

Source: Autocar UK


 
  • WVB

    Looks to me as though Honda were lining up host of pointless models anyway likely to satisfy americans. Common sense is also prevailing with a single accord variant too.
    Examples like MDX, Legend, S2000 have also never properly returned on investment either.
    However, when plans to scrap development on brilliance like jazz, CRV or civic arrives we’ll know Honda are bleeding bucket loads.
    I hope not.

  • Imugli

    This is awfully reminiscent of Mazda’s stillborn v8 and v12 eunos programs back in the early nineties…

    Funny how history repeats.

  • Myke

    ^Mazda’s attempt with a luxury car brand nearly resulted in their bankruptcy, atleast they had Ford to lean on. Of course that meant Mazda’s of the late 90s and early 2000s were utterly conservative in order to save cash. Lets hope Honda aren’t too badly hit.

  • Fasthonda

    I would say a huge part of the decision to restructure it’s products would have to do with the USA.
    For 2008,Honda sold 1,428,758 vehicles in the US-down about 7.91% from 2007.
    The American market can have your products reach the sky in terms of sales,but when things start to slow down,that once cash cow market,can literally send you to the wall!
    Honda believes the dwindling car sales situation will become worse in other markets but mainly in America.

  • Mega

    In these times, Honda is quickly becoming a ‘boring’ toyota-like manufacturer. Jazz’s and mini hybrids (maybe) will become low-margin, high volume household whitegoods until well after the auto industry has recovered from the sales crash. Clearly the safest bet for honda, in a time in which we all try to curb our spending.

    Its a pity though, because we will miss out on all the future ‘interesting’ cars such high revving S2000′s, RWD V8′s etc.

  • Reckless1

    Sounds like a dramatic over-reaction to me. The world economy will boom again, for one very simple reason – the population is still increasing every day during this checkpoint, and will continue to do so.

    Although, of course, Honda knows how bad things are in their own backyard, and we don’t.

    Dropping development of cars to try and compete with BMW is not so stupid, though – Toyota has been trying that for years since the Cressida and through Lexus and hasn’t achieved parity yet.

  • itsme

    I dont agree with you on that one reckless.I think in the very short time lexus has been around thay have taken a huge slice of the upper market.And is very popular.Or did you mean not up to bmw as in driving standards which i would agree with you on that one

  • Falcodore

    Agree with Mega, sounds like Honda are trying to be like Toyota.

    Just what the world needs, more white goods on wheels :(

  • Mike

    Smart moves by Honda. They know what they’re doing, at least for now. None of those models or platforms would sell enough to justify continued development. Sticking to their core market is a smart move. Wouldn’t mind seeing their SH-AWD in more models though, as a compromise to no RWD. And what accord are they talking about for the US market only? It must be the Accord coupe?

  • Reckless1

    Itsme, I mean they haven’t built a BMW yet. They may have sold some cars. but they haven’t stolen any market share from BMW.

    They’ve likely got their market share from people stepping out of Camry, who test drive even the cheapest Lexus and go “Oh my God, compared to the Camry, this is just heaven”. They don’t test drive BMW, Merc, or Audi at all.

  • Cupid Stunt

    Think your right there Reckless. Thay are good quality cars, sometimes sporty, sometimes comfortable but never the quality of the German Marques or at there prices. I quite like Hondas but taking cars like the S2000 and Type R efforts I couldn’t live with one, all that having to let rip with 8K revs to get it to move just makes it hard work to drive. If they stuck to more chuggy motors like most do then i’m sure they’d sell more.

  • AAA

    Honda should develop cars aiming at Lexus and not BMW coz Lexus is the number 1 selling luxury car brand in the US.