John Mendel: Honda Won’t Do Stupid ThingsAutomotive News that Honda will not do “stupid things in the short-term that damage the person who bought yesterday.”
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Mendel told Auto News (subscription required) that extended loan terms and other tactics that incentivize new car purchases for customers who might not be able to afford them in the long term are ultimately going to end up hurting profitability and customer loyalty.
Mendel also added that the auto market is “near the top” of its potential, and that too much pushing against the roof could spur an all-too-familiar bursting of the bubble.
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Despite the loss of market share, Honda currently offers the best-selling car (Accord), compact-car (Civic), minivan (Odyssey), and utility vehicle (CR-V), at least according to their interpretation of Polk new-vehicle registration data. Once fleet sales come into the picture, only the CR-V leads its segment. This, according to Mendel, stems from Honda’s commitment to pleasing individual customers and focusing on the long-term goals the company holds for itself.
“Our strategy is working,” Mendel said. “We’re doing what we need to do. We’re delivering great value to the customer.”
Despite a 27 percent year-to-date increase in incentives, Honda is in the bottom third of all automakers when it comes to total incentives offered on new vehicles.
Source: Automotive News