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Old 24th November 2011, 09:46   #1
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Default Economic Times: Honda stops production of City, Brio to be next

Honda stops production of City, Brio to be next - The Economic Times

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NEW DELHI: Supply constraints due to floods in Thailand is wreaking havoc at Honda's Indian operations and has forced the company to shut down production of the City Sedan and Brio Compact. It has also cut back the output of the Jazz hatchback to a few hundred units. To tackle the problem of shortage of parts, Honda is making emergency arrangements to source components from locations in China and Japan to normalise output.

Last edited by GTO : 25th November 2011 at 19:02. Reason: Keeping fair usage practices in mind, it is best to include an excerpt + link to full article
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Old 24th November 2011, 09:55   #2
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Default Re: Economic Times: Honda stops production of City, Brio to be next

Unbelievable situation for Honda !! Cant imagine what the dealers must be going through !
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Old 24th November 2011, 10:30   #3
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Default Re: Economic Times: Honda stops production of City, Brio to be next

When the demand has picked up, after the cuts for the City , and with the 'just launched' Brio picking up in sales this is a real bad situation for Honda!

Cheers!
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Old 24th November 2011, 11:15   #4
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Default Re: Economic Times: Honda stops production of City, Brio to be next

Any ideas why Civic is not impacted by these floods. Every alternate day i get a call from my SA about the Civic and its available immediately (within a few days). Either Civics are not selling at all or they have more stock and can produce more than the wafer thin demand for Civic?
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Old 24th November 2011, 11:17   #5
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Default Re: Economic Times: Honda stops production of City, Brio to be next

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Originally Posted by mayankjha1806 View Post
Any ideas why Civic is not impacted by these floods.

Civic is available off the shelf as there is large inventory due to the low volume in sales!

Cheers!
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Old 24th November 2011, 12:15   #6
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Default Re: Economic Times: Honda stops production of City, Brio to be next

People getting new Jazz dont get the chrome strip anymore on the grill. They are being told by showroom folks that it'll come in January since it comes from Thailand.
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Old 24th November 2011, 12:24   #7
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Default Re: Economic Times: Honda stops production of City, Brio to be next

OMG ! Output cut of 95% by December ? That's phenominal. Also why doesn't it affect other vehicle types. Where do they source Civics /accords ?
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Old 24th November 2011, 12:47   #8
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Default Re: Economic Times: Honda stops production of City, Brio to be next

I dont understand why Honda put all its eggs in one Thai basket. After all good business sense demands backup identification and timely creation. It looks like bad luck has caught up with Honda and when they are on a downward spiral they are only catching more and more issues.

Quote:
Originally Posted by mayankjha1806 View Post
Any ideas why Civic is not impacted by these floods. Every alternate day i get a call from my SA about the Civic and its available immediately (within a few days).
I get frequent calls for the Civic AT that I evinced interest in a few months ago. The discounts seem to increase progressively; the latest one is a 1L discount. The only question I had for the SA was if it is the same piece that he offered me last month. He was not sure, so I told him I dont mind waiting. Who knows; the discount may just increase if petrol prices go up a bit!
I am not sure if it is a demo/ display piece or just a cancellation by another customer.
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Old 24th November 2011, 13:31   #9
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Default Re: Economic Times: Honda stops production of City, Brio to be next

But what i am wondering is why aren't these discounts applicable to CRV. Civic and Accord both have massive discounts and CRV none (in spite of it being a petrol).

Going by the logic of post above waiting for some more time may yield better results.
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Old 24th November 2011, 13:37   #10
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Default Re: Economic Times: Honda stops production of City, Brio to be next

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Originally Posted by selfdrive View Post
I dont understand why Honda put all its eggs in one Thai basket. After all good business sense demands backup identification and timely creation.
Spot on. A typical case of putting all the eggs in the same basket. In fact, it is not just Honda - A tier 1 Auto manufacturer that I'm doing a project for had to shut down their plant because they were sourcing 85% of their raw material/ parts from Thailand!!

Computer makers are hit hard too. I read that there is a big scarcity of hard drives as most of the major hard drive manufactures plants in Thailand are under water.
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Old 25th November 2011, 15:03   #11
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Default Re: Economic Times: Honda stops production of City, Brio to be next

Nice thread. I actually had not observed the decline in civic sales but when i think about it, i hardly remember my last known person who had picked up a civic. It is a clean example of how some minor circumstancial changes in the market strongly impact such massive companies
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Old 25th November 2011, 15:08   #12
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Default Re: Economic Times: Honda stops production of City, Brio to be next

Just made me wonder what happens to the dealers in this scenario? There sales will take a huge hit and hence the earnings. Does Honda compensate them in any form?
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Old 25th November 2011, 19:05   #13
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Default Re: Economic Times: Honda stops production of City, Brio to be next

The trouble just never seems to end for Honda. First, the Vento & Verna beat the socks off the City. Next was the Japanese Earthquake tragedy. Then, petrol prices shot up exponentially. And now, the Thailand Floods.

2011 is going to be one forgettable year. This, at a very crucial time....the just-launched & well-priced Brio could have given Honda previously unseen volumes.
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Old 25th November 2011, 20:00   #14
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Default Re: Economic Times: Honda stops production of City, Brio to be next

Sent my brio for service today and the dealer staff was in some training / video presentation of the new upgraded Honda City is what the service manager said,
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Old 25th November 2011, 20:20   #15
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Default Re: Economic Times: Honda stops production of City, Brio to be next

When we thought Honda had seen the deepest of problems, we were wrong. The company has all the tides turned against it.
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