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Honda Leader of Pack with Auto Sales in Asia & US - Civic is Still the Hot Seller

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On: Tue, Jun 8, 2010 at 1:44PM | By: Michael Jon Lazar

Honda Leader of Pack with Auto Sales in Asia & US - Civic is Still the Hot Seller

At one time or another it seems that we all have known someone who absolutely swears by driving a Honda. There are tons of great lines that this automaker has to offer to the consumer—from small and  compact cars, like the Honda Civic, to roomier and spacious mid-sized sedans, like the Honda Accord. They have even increased their already impressive fleet of vehicles lately, adding the sweet touring sedan they call Honda CrossTour, and even making mini-SUVs that appeal to the younger  crowd, like the Honda Element. They also offer the Pilot for those looking for a real four door SUV, and they have the Ridgeline, a very durable and heavy-duty truck. For  parents and child-toting folks, they also offer the Honda Odyssey—which is a pretty feature-loaded and safe mini-van.

These are but a few of the many great cars already in the Honda fleet.

Over the years, Americans have really taken to Honda cars. People love Hondas for several different reasons. Most people, when asked why they cherish their Honda so much, have told me it is the most reliable car they have ever driven, and that it comes with an excellent warranty as well. They seem to really, indeed, like a car company that offers them the car they want and the peace of mind gained  from knowing their car is covered by a great warranty.

Curious about the Honda warranty, I poked around on their website (www.honda.com) and pulled up some stats. They do offer a fairly decent package. And when I looked at other car warranties, the Honda warranty does indeed compare rather nicely—adding to why people love these cars so much, in addition to the fact that they look so sleek and drive so smoothly.

The typical Honda warranty, as they state on their website, offers the following, “Honda Limited Warranty Information[1] Bumper-to-Bumper Limited Warranty (years/miles) = 3/36,000; Powertrain Limited Warranty (years/miles) = 5/60,000; Corrosion Limited Warranty (years/miles) = 5/unlimited; Accessory Limited Warranty: All Honda Genuine Accessories are covered up to 3 years or 36,000 miles, depending on time of installation; Additional Limited Warranty Information Replacement Parts Limited Warranty: Honda Genuine Parts, when installed by a Honda dealer, are covered for 1 year or 12,000 miles. Parts purchased from but not installed by a Honda dealer are covered for 1 year.”

It is not just we Americans who really love these cars. Asians love them, as well. According to a recent report published by Market Watch, entitled, “Honda Sets All-Time April Record for Auto Production in Asia and China,” production in regions outside of Japan experienced a year-on-year increase for the sixth consecutive month (since November 2009) including record production in Asia and China for the month of April.”

But Honda sales in the US are also surging. They have been steadily climbing as the auto market comes back and more US auto buyers are in the market for a new car. A recent report by BusinessDay provides some solid numbers on Honda’s US sales and market gains: “Honda is the only automaker among the top five to increase sales this year in the US as rising gasoline prices have cut demand for sport-utility vehicles and pickups. The company relies on truck sales for less than 40% of its total, compared with as much as 70% for US-based automakers.”

Not only that but the car company is making some headway as far as overall profits are concerned, according to the report by Business Day. “Honda may raise its profit forecast at the half-year point,'' said Takashi Aoki, who helps manage about 130 billion yen at Mizuho Asset Management. ''It may also increase production capacity for the Civic and Accord.”

The top selling cars, according to the report, are the Civic, Accord, and Fit. ''Civic, Accord, and Fit continue to perform very strong,'' according to the e-mail, signed by Taku Kitamura of Honda's investor relations office in New York. ''All the light-truck models were down due to the record-high level of gas prices. The company's car sales were up 37% in the period.”

In the same report, Chuck Schifsky, a Detroit a spokesman for Honda, sums it up, “Civics are in short supply at some dealerships because demand is outpacing Honda's production.”

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