Honda Europe’s British chief Ken Keir said that like other carmakers, the company was suffering the effects of the ‘pull-forward’ in sales caused by scrappage incentives introduced by many governments.
Profits have also been dampened by unfavourable exchange rates but he is certain that Honda’s reputation for reliability, along with its environmental credentials, will see the company remain in good health.
The downturn in car sales generally coincided with a hiatus in new products.
The Jazz, Civic, Accord and CR-V ranges will all be updated within the next two years but the product offensive does not start until the end of next year.
Production of the Jazz, Civic and CR-V takes place at the Swindon factory which is in line to build 150,000 cars over the next 12 months with a workforce for 3,000. In the golden days before the recession the company employed more than 4,000 and production was close to 240,000 vehicles a year.
Honda launched its latest hybrid – the small Jazz – at the Paris Motor Show and Mr Keir expects this model to do well across Europe, accounting for 10 per cent of all the model’s sales. The Jazz has a claim to fame in that it’s the favourite of Jeremy Clarkson’s mother.
The Jazz, which is built in Swindon, costs from ￡9,995 before the VAT increases to 20 per cent on January 1. The hybrid Jazz, which is built in Japan, will announce its prices soon and is likely to be around ￡2,000 more.
“Our vision is to be acknowledged as a leader in environmental vehicles, we already have a good track record, and as a brand with a strong image,” said Mr Keir.
“We have a lot of new products coming through from 2012 onwards and we are preparing ourselves for a period of significant growth.
“Some markets have been hit worse than others over the past two years and Russia, which has been strong for Honda, has been significantly affected during this period.
“We had to take a conscious decision to empty our stock in Russia and move it into other European markets where we could sell it.
“That market is starting to recover, however, and is one country where Honda has considered selling its upmarket US brand Acura.
“We have to look how the Russian market develops. There could be potential for Acura but any decision on that is many years away. We have already decided that the Acura brand is not for western Europe.
“It would have to be marketed as a separate franchise and would require a significant amount of investment. It’s not something we want to do.”
