Last post on Nov 25, 2013 at 11:27 AM
You are in the Sedans
What is this discussion about?
Lexus GS 430, Acura RL, BMW 5 Series, Volvo S80, Audi A6, Infiniti M35, Infiniti M45, Mercedes-Benz E-Class, Cadillac STS, Sedan
#8197 of 10348 Re: I still [lexusguy]
Aug 24, 2006 (1:56 pm)
Ford's and GM's market cap is explained by their battered stock price. They are not #12 and #15 in relative size, vs. Honda's #2. GM is the 3rd largest corporation in the world, and Ford is #4, based on revenues. They dwarf Honda in terms of revenues and units (although they may not be making money on those units).
Honda is the #1 manufacturer of motorcycles in the world, and sells a variety of power products and engines. In 2005, they sold 10.5 million motorcycles, 5.3 million power products, and 3.2 million cars/trucks. They recently announced production of small airplanes and aircraft motors. They more resemble GE than they do GM.
In terms of luxury performance cars, I would still maintain that they are a relatively small player, and significantly smaller than Toyota/Lexus and the Big 3. If the LS were to fail, it would be a disaster for Toyota. If the RL fails, Honda can twitch a little, but eventually move on without losing too much sleep (assuming Honda execs don't read the opinions on this LPS board). (Joke)
But agree with Lexusguy that such "smallness" is driven by conservatism, independence, and product range beyond automobiles.
Honda announced that in 2008, they will be expanding the Acura brand into Japan.
#8199 of 10348 Re: Follow-Up Test:BMW 550i From Edmunds [hpowders]
Aug 24, 2006 (2:12 pm)
I can think of a number of reasons. But that certainly doesn't mean your choice is any less appropriate for YOU!
I am delighted to hear that you are delighted, in fact!
Aug 24, 2006 (2:30 pm)
I have read and heard is that Honda/Acura is a small but very profitable company. I hope they can get some platform/driving dynamic things worked out. I really doubt it's a budget problem. I think it's more of an entrenched mentality that says if it ain't broke [financially speaking] then don't fix it.
Anyway, welcome any new posters. [or maybe just new to me]
Viva la RL[He says to himself in his tiny little head ]
#8202 of 10348 Re: Follow-Up Test:BMW 550i From Edmunds [markcincinnati]
Aug 24, 2006 (3:56 pm)
Thank you for such a delightful post!
#8203 of 10348 Re: Follow-Up Test:BMW 550i From Edmunds [pat]
Aug 24, 2006 (3:57 pm)
#8204 of 10348 Re: Follow-Up Test:BMW 550i From Edmunds [hpowders]
Aug 24, 2006 (4:04 pm)
#8205 of 10348 Re: I still [lexusguy]
Aug 24, 2006 (4:30 pm)
It really goes to show just how focused and efficient HMC is. Market cap is a function of (expected) profitability . . . Honda is making a lot of profit on relatively small revenue by being efficient in managing a few models and platforms. It is expanding (e.g. MDX, CR-V, Odyssey are all new categories created in the last decade, as far as Honda is concerned), but give it more time, IMHO, it will have products farther removed from its core competence, which is solid midsized and small FWD sedan/coupe. IMHO, Honda is doing it right, there's no point being in a segment in any big way unless you can hold #1 or #2 position . . . a page perhaps borrowed from Jack Welch's playbook. It's far better than VW's strategy of being everywhere but good at nothing.
#8206 of 10348 Re: Follow-Up Test:BMW 550i From Edmunds [hpowders]
Aug 24, 2006 (4:49 pm)
Because I don't fit...is that a good enough reason? I fit in the M-series, and bought one. If the car makers wanted to broaden their market, some people that drive trucks buy them for the room, they'd consider selling their their cars without the sunroof and give people that extra 3" or so of headroom. The last AUdi I had, you could order at least some of the nice to have items without one, but no longer, and that is true for most companies.