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Honda Drops Nsx Plans, Pulls Back on Other Projects
There aren't too many automakers across the globe that I think merit a five star rating. No, I'm not talking about sales, quality, value or some similar measurement tool – good things at that – rather, how well a company is organized, uses technology, promotes its business, and leads the market.
High marks should be given to Daimler, the BMW Group and Nissan/Renault, but I believe that only Toyota and Honda warrant a top rating. Of the two, I would give the edge to Honda simply because they've managed to keep their portfolio balanced without trying to do everything that the Detroit Three do, namely design and sell big super-sized trucks and sport/utility vehicles. Toyota is “guilty” of trying to be all things to all consumers and got caught building too many big vehicles when the market turned.
But Honda isn't immune from problems and, in an example of just how difficult the global market is, has canceled its NSX super car. The NSX, according to Autoweek.com, was expected to have a front-mounted V10 engine that made at least 500 hp. It would have been the successor to the first-generation NSX, which had a mid-mounted V6. That NSX went out of production in late 2005 after 14 years.
Honda had big plans for the NSX, namely to help it respond to a pair of other super cars on the market, such as the Nissan GT-R and the Audi R8. But, the automaker issued its third profit warning in recent months, signaling that other cutbacks may be coming.
There could be another reason why Honda is suddenly being extremely conservative regarding product development, production, and its short term forecast. With a vested interest in the US economy – the automaker builds hundreds of thousand of Honda vehicles in the states – the collapse of any one of the Big Three automakers could prove to be disastrous.
Along with Toyota, Nissan, Hyunda, BMW, Subaru, Mitsubishi, and Mercedes all automakers with a presence in the states shares many of the same suppliers with General Motors, Ford and Chrysler. If a supplier goes under because an American automaker collapses the shockwaves will be felt across the automotive industry.
Another area where Honda is feeling the heat is with Japan's currency, the yen. Against the dollar, its positioned has slipped considerably making it difficult for the automaker to keep its profits up. An unprofitable venture means further cutbacks, something that will happen if the Japanese government doesn't intervene.
More than likely Honda will recover and perhaps revisit cut programs including the NSX. However, the world could be a much different place in a few years time, one where “frivolous” super car programs become a thing of the past.
About the Author
Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including Honda Odyssey tail lights and Honda Passport lambo doors.
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April 13th, 2010
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