According to the article linked here at Bloomberg, Honda cut target sales again to around 40k units. They are shifting capacity to build more civics instead due to high demand.

It will be interesting to see what the demand for the Fit will be outside the Fit forums. But if it becomes popular, then prices may remain high due to reduced production.



Link to article:
http://www.bloomberg.com/apps/news?p...hs&refer=japan

 

thats crap.

 

What is bad news is Honda's inability to keep up with demand for Civic Hybrid. They've got a chance to catch potential Prius buyers who don't want a car that looks like some kind of deformed spaceship abortion. That's a big deal.

Given the circumstances I would do the same thing.

 

GM employees and management stomp their feet and slam fists into the wall wishing they were in the same situation.

 

That's what happens when you are tremendously skilled in the art of producing cars that no one wants to buy.

 

that's because the fit is still new, and honda doesn't want to risk their capacity...we'll need to wait and see how the demand kicks in...

 

I hope it is successfull enough so that they keep bringing it here, but not so successfull that the prices don't come down. I am still a little miffed about the price (the original release said between $13,000 and $14,000) and would like to see it down in that range.

 

Totally agree from the business/financial standpoint. They are making more money on the civic and if it sells, it's a no brainer to produce more. It's just sad to see it's at the expense of the Fit.

I sometimes wonder if Honda truely believes the Fit will sell in the US. It seems like they have their doubts.

 

Its totally understandable for Honda to be skeptical of even there own product in this case for obvious reasons. For one its a completely new model. Two the US market hasnt shown alot of interest in small b-segment cars to really boost Honda's confidence in this segment in this market. They have to rely on there reputation, there name to help bring new buyers to this small segment. Of course it helps when external factors calculate into more sales like raising gas prices but no car company can rely or depend on a external factor like that to progress sales of any model much less a brand new one.

 

Do you blame them? America doesn't like hatchbacks or versatility. Didn't u see that south park episode; they implied many ppl buy hybrids so they can feel superior. This is good news for us, the real fit freaks. We'll be the few who know what a great wondeful efficient car is. Maybe we may end up promoting the fit by spread of word?

 

Actually this isnt good at all for people like us, the real Fit followers because if Honda doesnt have alot of Fit's on there dealer lot at any given time, that means they have no reason to offer you the car for less then MSRP because unlike a Civic or Accord that sells like hotcakes which explains why there is more Civic's and Accords then anything else, Fit's will 99% not sell anywhere near as well as its two older siblings and you'll be lucky to see 10 Fit's at one dealership at one time.

 

That's right. Be proud that we (the few people in this world) will be the only ones driving this masterpiece of a vehicle.

 

I would imagine everyone from Honda to the dealer and salespeople make less of a profit on a Fit as well. If the Civic is hot, and they make more money on that car, then it stands to reason they will buid more Civics. Yes?

 

Clever. keep supply low, demand high. The word on the street will be Honda can't even keep up with demand for the Fit. That's not a bad position for Honda to be in.

 

Worked for cabbage patch dolls in the 80's!

 

Yes its true that Civic's make the dealers more money cause they cost more then the Fit but remember that extra money each salesman makes by selling a car at MSRP or more goes to the dealer not Honda themselves. So Honda in reality doesnt benefit from that extra money that is made when dealers sell a car at MSRP or above. But they could care less about $4k at the very most(which is the top of the line Odyssey) when they are making money off the dealers who are purchasing these cars from them at invoice prices. Comparing a $15k invoice price to the $2k that a dealer makes in profit when sold at MSRP isnt much of a comparison.

 

But Honda gets to keep the factories moving cars out the doors.
Parts business from selling parts to the dealerships.
And there has to be an economy of scale at work since they produce a hell of a lot more Civics than Fits which means the manufacturing costs would average out lower, perhaps.

 

If the dealers start turning down a particular model, then they incur more costs for promotion, incnetives for the dealers, rebates, etc..
If a delare has a whole bunch of cars that aren't moving very fast, or that make him less money, he wouldn't be very happy with the manufacturer.

 

Also, I would think Honda would not like dealerships always gouging customers above MSRP. Screws the market up! Makes people dislike the dealerships that represent Honda and, in turn, may sour them on Hondas.

 

LOL ....and the award for best Prius description goes to...