GM, Ford Report Profit; Honda Won't Chase Scion

[igor@af]

SUMMARY: <span style="FONT-SIZE:10pt; FONT-FAMILY:Verdana">The world’s largest automaker, GM, announced a $1.3 billion profit for the second quarter. This beats Wall Street expectations by about $0.12 per share, and is a 48% increase over last year’s results. <span style="FONT-SIZE:10pt; FONT-FAMILY:Verdana">The financial news out of Ford was similar, with FoMoCo posting a quarter profit of $1.2 billion. Honda will build an entry-level vehicle priced below the Civic in the $12,000 market. </span></span>

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[CaTasHtRoPhE 67]

its a good idea but why not just spend 3000 more and just get a civic dx or lx

[mcervantes]

Originally Posted by CaTasHtRoPhE 67

its a good idea but why not just spend 3000 more and just get a civic dx or lx

Perhaps because, at $12,000, $3000 would be a huge deal to some. That's a full 1/4th of the price of a $12k car. I'd also expect a fully equipped $12k Honda would come with a few more features than a stripped Civic DX, and I doubt it'd give up much in the way of interior space, quality, and performance.

In fact, I'd make the argument that most consumers would pick the smaller Honda loaded with features vs. a stripped Civic. Which is probably why we'll see the next Civic move upstream a bit to make room for the new model. They could even kill off the DX model altogether.

Mike Cervantes
AutomotiveArticles.com Editor-in-Chief.

[icE_x]

It'll be nice to see a new lower-end model to replace the Civic. This would probably target the Scion owners as well. However, I do agree with Mike. I'd rather have alot of features on a lower-end model than take one-step higher and have no optional features at all.

I love honda

[aznstuart]

did anyone here about the new Honda FR-V that came out in Japan? It's supposed to be targeting the Toyota Matrix. Honda FR-V

[icE_x]

looks like a mini-minivan with a nicer front end, lol

i like the options though, and the DOHC i-VTEC engine