Maybe you’ve been watching the photos coming out of Thailand. This one is of Honda’s underwater assembly plant near Bangkok, which is likely to be out of commission for up to 6 months, affecting 3 percent of global output.
And who can forget the pictures from the earthquake/tsunami disaster in March that humbled Honda big-time? Plus the strong yen, which has contributed to Honda’s recent announcement of quarterly profit falling 56 percent. U.S. sales dropped 22.3 percent, and revenue from nearly all regions was down.
The company is really taking it on the chin—and this at a time when U.S. auto sales are predicted to rise. Other companies, like Toyota, have also been affected by the floods, and there are all kinds of supply chain shortages.
We’ve written before about Honda’s 2.5 million recalls and how Consumer Reports dissed the Civic. Now the bad press about the car has forced Honda to move up its efforts to redo the cheapened Civic, to sometime in 2013. By which time, the damage may have multiplied.