Weak USD Makes Small Car Imports Expensive, American Buyers Turn to Domestic Brands

Is a weak dollar a good thing? If you’re asking the U.S. car industry, it most definitely is. Imported car prices have reached their highest point in the last 12 years, thus driving some of their prospective buyers away.

According to the U.S. Bureau of Economic Analysis, in August the average price of an imported car reached a record high of $31,536. That makes the price difference between a comparable domestic-made car $7,614, which is the largest since December 1999.

Add to that the severe supply issues faced by the Japanese manufacturers, who are only nowstarting to recover from the aftermath of the March 11 earthquake, and it’s easy to see why more and more American car buyers are choosing domestic brands instead.

This trend is very popular in more affordable cars, where the yen’s strength compared to the US dollar diminishes profits for Japanese carmakers, which in turn, limit their sales.

“It’s very hard to import small cars right now, especially from Asia, because of where the dollar is”, said chief economist for Nationwide Mutual Insurance Co. in Columbus, Ohio. Yesterday, the yen rose less than 0.1%, to 76.84 per dollar.

Another reason for the increased popularity of US-made cars in their home market is the fact that local manufacturers have minimized the difference in quality between their products and those of their Japanese rivals.

A 2009 J.D. Power study found that the difference in the numbers of problems owners of Toyota, Chevrolet and Ford cars was “statistically insignificant.”

Consequently, in the first nine months of 2011 GM’s US market share has risen to 20% and Ford’s to 16.7%, while U.S. light-truck sales have increased by 10% compared to last year.

The sales drop and the rising yen are also making discounts almost impossible to Japanese carmakers, which are losing their last weapon in their effort to reclaim their lost share. IHS stated that it is “not expecting the usual year-end clearance promotions” from Toyota and Honda.

The only solution, as first adopted by Nissan’s CEO Carlos Ghosn, is cost-cutting. Honda has already decided to halve its domestic production, while Toyota is taking more drastic measures, like retooling old assembly machines, pushing its suppliers to lower their prices, and for the first time, manufacturing hybrids outside Japan.

In the meanwhile, models like the Chevrolet Cruze will continue to benefit from its competitors’ troubles gaining market share against the Corollas and the Civics and increasing U.S. carmakers’ profits.

Story References: AutoNews

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Tjin…the Thursday Edition: 2012 Honda Civic and Chevrolet Cruze SEMA Show Tunes

The 2011 SEMA Show in Las Vegas this November is gearing up to be a busy event for the crew over at Tjin Edition.
Only two days after announcing their partnership with Ford for the customization of a 2012 Explorer SUV and a Mustang 5.0 GT, Tjin Edition revealed that it has also partnered up with Honda for the development of a bespoke 2012 Civic Si and GM for the creation of a decked out Chevy Cruze sedan.
Interestingly, Tjin Edition says it was selected by Honda to build the only Civic Si Sedan at this year's SEMA event. Among other features, the beefed up Civic Si will sport a custom Wraptivo wrap, 19-inch Rotiform Concave BLQ wheels that hide a set of Baer brakes and a lowered suspension.
For its sixth General Motors build in the last four years, Tjin Edition has selected the Chevrolet Cruze sedan that will be customized with a Dupont Sunburst Yellow paint job, Light Wurkz LED headlights, 19-inch Rotiform TMB wheels matched up to Falken tires and massive yellow 6P Baer brakes.
The Cruze will also feature various interior upgrades such as black leather seats and a Realm Audio, as well as performance modifications

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Honda Introduces 2012 Insight Hybrid with Slightly Improved Fuel Economy in the States

At the recent 2011 Frankfurt Motor Show, Honda unveiled the subtly revised for the 2012MY Insight Hybrid, and now it's time for its introduction in the States.
Available to order now, the 2012 Insight debuts some minor cosmetic changes inside and out, additional equipment features on certain models, and a 1mpg fuel economy improvement across the range.
Prices for the 2012 Insight start from US$19,120 (including a $770 destination and handling fee), a $150 increase over the base 2011 model.
On the outside, Honda added a newly styled front grille that introduces a thin, blue accent bar, along with revised front and rear bumpers, tweaked headlight and brake light graphics, and changes under the body that contribute to a 2-percent increase in aerodynamic performance. The new wheel covers and alloy wheel designs complete the exterior nip and tuck.
Inside, the 2012 Insight gains a reconfigured rear seat bench that improves leg and head room, a revised gauge cluster background, reshaped center-console beverage holders that can accommodate larger drinks plus a more supportive front armrest for the LX and EX models, and refined seat fabrics.
Honda said that it has also improved rearward visibility through the use of a more compactly mounted rear-wiper motor housing and a thinner rear spoiler, and has added adding thicker noise-insulation materials.
Equipment upgrades include the addition of map lights and steering wheel audio controls on the LX, and Bluetooth HandsFreeLink, automatic headlights and a leather-wrapped steering wheel and shift knob on the EX.
For the 2012MY, the Insight continues to be powered by Honda's IMA system comprised of a 1.3-liter i‑VTEC gasoline engine and a 10kW electric motor, delivering a combined output of 98HP at 5,800 rpm and 123 lb-ft. of torque at 1,000-1,700 rpm.
However, the Japanese firm's engineers reduced friction in the engine and Continuously Variable Transmission (CVT).
Along with the aerodynamic improvements, these changes contribute to an EPA fuel economy-ratin1 improvement of 1 mpg, from 40mpg city, 43mpg highway and 41mpg combines on the prior model to 41/44/42 mpg respectively on the 2012 Insight.

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Rumors: New Honda / Acura NSX Could be Unveiled as Early as the 2011 Tokyo Motor Show

[2003 Honda HSC Concept pictured above]

Finally, Honda has stopped beating around the bush and has come out in the open about the successor to the NSX, revealing more details about its forthcoming sports car.
The bottom line is that: the new NSX is coming; it will be a real sports car in the vein of the original (that is, lightweight and easy to drive); it will probably use next-generation hybrid technology; its unveiling is imminent and it could go on sale much sooner than anyone suspected.
The head of Honda’s R&D department, Mibe Toshihiro, confirmed to British magazine Autocarthat the company is already working on a flagship sports car modeled after the original NSX.
The news comes only a few weeks after Honda’s CEO, Takanobu Ito, said that the new NSX is indeed being developed, but would be quite different in character to its lightweight predecessor.



Toshihiro’s statement does not necessarily contradict that of his boss: “President Ito has already mentioned a new NSX, and we have looked at that in the R&D department”, he said.
“We are now at a point where we can consider the next generation of electric and hybrid vehicles. It would be an interesting project: electric or hybrid vehicles can be as fun as economical. I cannot say more than that,” Toshihiro added.
According to reports, a thinly disguised concept version of the new Honda (Acura in the US) NSX could be unveiled at next month’s Tokyo Motor Show, with the production model going on sale as early as next year.





The same sources stressed, however, that the schedule may change since Honda, along with all other Japanese car manufacturers, is still facing supply problems after the March earthquake despite production capability of its domestic plants returning to normal.

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Japanese Carmakers' Production Back on Track, But it May not be Enough

For the first time after the March 11 earthquake and Tsunami, Japanese automakers have returned to their normal production levels. In fact, they are superseding last year’s numbers in an effort to make up for the lost time.

Toyota and Nissan, Japan’s two biggest car manufacturers are leading the pack, reporting increased production for the first time since March, with Mazda, Suzuki, Honda, Subaru and Mitsubishi following their lead.



Yet there are still issues that hamper their efforts. One of them is the continuing shortage of certain parts, such as microchips, with the companies trying to find alternate sources of supply, mostly overseas, overturning a decades-old tradition.
Even the so-called "just-in-time" model, which was introduced by Toyota in the 1950s and has since been copied by almost everyone, may change in the near future as car manufacturers are trying to create parts inventories so as to prevent the 2011 catastrophic results.
Honda’s global purchasing boss, Masaya Yamashita, says: “In order to supply carmakers, I think Tier 1 suppliers are really struggling to make deliveries to us all. The parts are reaching us. But the inventory is still pretty tight.”
The solution, according to Yamashita, is to have "at least two Tier 1 and Tier 2 suppliers".
As reported, Toyota is the first to make sure that it won’t face the same problem again. The firm's executive vice president for global production, Shinicki Sasaki, said: “We have instructed them to have a plan that allows them to go back to normal operations within two weeks of a major disaster”.
Therefore, even though production is back to normal in Japan’s domestic factories, depleted inventories in big markets, such as the US, will take more time to build up again – and in the meantime, will continue to limit their sales.
Story Sources: Autonews

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New 2012 Honda Civic Hatchback Priced from £16,495 in the UK

Honda has released UK pricing and equipment levels for the new Civic, which made its world premiere at the 64th International Auto Show in Frankfurt earlier this month. Buyers can order their car now with first deliveries set to take place in January.

In Britain, the ninth-generation Civic will be available with three engines and a choice of four trim levels. Prices for the five-door hatchback start at £16,495 for the entry-level 1.4-liter petrol model and top out at £26,595 for a fully equipped 2.2-liter diesel.
All versions of the 2012 Civic are fitted with an ECON driving mode, which is similar to the one seen on the Jazz and Insight hybrids managing engine settings in order to improve fuel consumption, It also includes an “Idle Stop” auto stop/start system on manual-gearbox equipped models.



The entry-level SE trim level includes 16-inch alloy wheels, automatic air-conditioning and USB connectivity for MP3 players and costs £16,495 with the 100HP 1.4-liter petrol engine, £17,995 with the 140HP 1.8-liter unit and £20,095 with the 150HP 2.2-liter i-DTEC diesel.
Next up is the ES trim which costs £18,995 with the 1.8-liter petrol and £21,095 with the 2.2 diesel. On top of the SE specs, it includes a leather steering wheel, dual-zone air-conditioning, Bluetooth connectivity, cruise control with speed limiter, automatic headlights and wipers, a rear view parking camera, key fob-operated windows and folding mirrors, and a 6-speaker audio system.
The third trim available in the UK is the EX, which adds leather upholstery, heated front seats and an HDD audio and navigation system. It is priced at £21,745 with the 1.8-liter petrol and £23,845 with the 2.2-liter diesel.





The top of the range model is the EX GT. It adds keyless entry and ignition, front and rear parking sensors, bi-xenon headlights, a panoramic glass roof, privacy glass, auto-dimming rear view mirror and 17-inch alloy wheels. It is priced at £24,495 and £26,595 with the 1.8-liter petrol and 2.2-liter diesel engines respectively.
From March 2012, UK Civic buyers of the SE and ES trim levels will have the option of adding a T-Grade package, which, for an extra £995, adds a touch screen satellite navigation system, to the standard specification.

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Honda Brio

To be launched on September 27, 



 We don’t know the pricing of the car yet, neither do we know how many variants it will have (my guess is 3). 
So lets broadly look at what we know about the car


Exteriors
Honda cars have a way of appearing small than what they actually are but even then the Brio is a really really small car….and looks even more so. Among its competitors (wift, Polo, Liva and i20) it is by far the shortest has the least width and is taller than only the Polo.
Headlamp and grille
All the elements also point towards how small the car is. It has a short chrome grille with the honda logo emblazoned on it takes up almost the entire space and even the almond shaped headlamps are large in context but small in comparison.

Tail lamps

This is a sort of a neglected area in small cars almost as if manufacturers get bored by the time they make it to the back. Which is ironic, because these are small cars after all and hence there is less real estate to design.

The Brio’s tail lamps however, are one of its more striking features. The traingular cluster fits in neatly at the rear corner of the car. It gels so well with the car that if it would not glow, you may even miss its presence.

Boot lid

Which brings us to the boot lid, which I am sure would be a talking point. The Brio does not have a conventional boot lid and its hatch is comprised of just the large glass that goes all the way up. As such the frame is high which is not quite a good thing for loading-unloading, but the unconventional lid sure gives the car a character.

Alloys

We know for a fact that the car will not get alloys as standard but the ones that are there on the top end variants are pretty basic to look at. Surely, the Swift’s alloys have set the benchmark here.

Interiors

The dash board and the instrument cluster are basic and minimalist but it not a design harakiri on the lines of the Liva. The puritans may be repelled by the evident cost cutting measures employed here, but it still is very functional. It has a two tone black and white instrument panel and no bluetooth. But the 2 din music system offers USB connectivity.

There is enough space for knick knacks and 4 bottle holders that can hold full size bottles. The glovebox however is small and lacks a chiller (unlike Liva).

Rear leg room

Space at the back is very good for 2 adults despite its small dimensions. What helps is that enough attention is paid to the ease of entry and exit at the back. The rear doors are unnaturally small compared to the front, but it does not hamper movement that much.

Engine

The most powerful in its class. The 1.2 litre Ivtec engine is the same that powers the much bigger Jazz. It belts out 88 bhp with a corresponding torque of 109 NM. Considering that the car is small and also light, this is a very compelling powertrain.

Boot space

At 175 litres, Brio’s achilles heel. Honda hopes India would quit its bad habit of travelling heavy and young families will take a liking to its other facets. The high loading position mentioned above also means accesing that boot is not an easy exercise. Not a disappointment that way, but a little more space would not hurt.

Fuel economy

Its small, its light, and it has a big heart, surely its frugal too. In Thailand which is Brio’s first market, it is sold as an eco car that means it boasts of an economy of 20 kmpl. In India the engine is retuned sliglhltly to make it more revv happy and hence economy is slightly lower at 18.4 kmpl. It is lower than the new Swift but not by much

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