2010 Honda Insight Hybrid May Miss U.S. Sales Target

Honda Motor Co (7267.T) may fall short of its U.S. sales goal for the new Insight hybrid by a third in the model's first year due to the recession and relatively cheap gasoline, Bloomberg reported, citing a top local executive.

"Given some dramatic change in things, I don't think we'll get to 90,000. At 50,000 to 60,000, we will be just fine," Bloomberg cited American Honda Motor Executive Vice President John Mendel as saying.

Japan's No.2 automaker has forecast annual worldwide sales of 200,000 units for the Insight, which went on sale first in Japan in February and in late March in the United States. Honda expects to sell half of that in North America.

A spokesman in Tokyo said there had been no change in Honda's sales forecast.

But Honda Chief Executive Takeo Fukui told Reuters last month that while response to the Insight has been good in the United States, Honda was placing priority on meeting brisk demand in the Japanese market partly due to unfavorable exchange rates.

Shares in Honda were down 1.8 percent in mixed trade for Japanese auto stocks.

Gallery: 2010 Honda Insight Hybrid

See Who Buying 2010 Prius

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Owner Reviews: My new 2010 Prius:
The new Priuses are in. I got one of the first three that got into this dealer (Marin Toyota). I test drove it. Tons of geek toys. The lane keep assist is a trip (uses a camera to keep you in the lane and wakes you up with an alarm if you go out of bounds).

2009 May Auto Sales: Honda U.S. Post 39.7% Drop of Last May

American Honda Motor Co., Inc., posted May total vehicle sales of 98,344, a decline of 39.2 percent compared to all-time record-setting May 2008 results. Year-to-date sales of 430,358 represent a 33.3 percent decrease on a daily-selling-rate basis* compared to last year.

Honda Division posted May sales of 88,875, a decline of 39.7 percent versus May 2008. The all-new Insight hybrid posted sales of 2,780, helping drive an increase in total Honda hybrid sales of 7.5 percent.

"May of 2008 was the best month ever for American Honda, as consumers sought fuel-efficient cars in record numbers," said John Mendel, executive vice president of sales for American Honda. "Staying true to the course of providing fuel-efficient, high-quality, fun-to-drive vehicles will hopefully help see us through to the economic recovery."

Honda total car sales decreased by 48.9 percent to 51,947. Honda light truck sales saw a decrease of 19.4 percent to 36,928.

The Acura Division posted sales of 9,469, a decrease of 34.0 percent compared to May 2008. The TL sedan was the division's top seller, with 3,375 units sold.

*The daily selling rate is calculated with 26 days for May 2009 and 27 days for May 2008. The year-to-date daily selling rate is calculated with 127 days for 2009 and 129 days for 2008. All percentages reflect the daily selling rate.

                    American Honda Vehicle Sales For May 2009
                                  Month-to-Date           Year-to-Date
                               May    May    DSR**    May     May    DSR**
                              2009   2008   % Chg.   2009    2008   % Chg.
                              ----   ----   ------   ----    ----   ------
  American Honda Total       98,344 167,997  -39.2% 430,358 655,819  -33.3%
  --------------------
     Total Car Sales         57,957 114,796  -47.6% 262,257 398,720  -33.2%
     Total Truck Sales       40,387  53,201  -21.2% 168,101 257,099  -33.6%
        Honda Total Car
         Sales               51,947 105,548  -48.9% 234,663 362,388  -34.2%
        Honda Total Truck
         Sales               36,928  47,556  -19.4% 152,893 227,973  -31.9%
        Acura Total Car
         Sales                6,010   9,248  -32.5%  27,594  36,332  -22.9%
        Acura Total Truck
         Sales                3,459   5,645  -36.4%  15,208  29,126  -47.0%
  Domestic Car Sales *       43,074  88,091  -49.2% 198,373 297,793  -32.3%
  --------------------
     Honda Division          39,699  83,797  -50.8% 183,855 277,566  -32.7%
     Acura Division           3,375   4,294  -18.4%  14,518  20,227  -27.1%
  Domestic Truck Sales *     38,209  41,392   -4.1% 151,163 197,021  -22.1%
  ----------------------
     Honda Division          34,750  35,747    0.9% 135,955 167,895  -17.7%
     Acura Division           3,459   5,645  -36.4%  15,208  29,126  -47.0%
  Import Car Sales           14,883  26,705  -42.1%  63,884 100,927  -35.7%
  ----------------
     Honda Division          12,248  21,751  -41.5%  50,808  84,822  -39.2%
     Acura Division           2,635   4,954  -44.8%  13,076  16,105  -17.5%
  Import Truck Sales          2,178  11,809  -80.8%  16,938  60,078  -71.4%
  ------------------
     Honda Division           2,178  11,809  -80.8%  16,938  60,078  -71.4%
  -----------------           -----  ------  -----   ------  ------  -----
  MODEL BREAKOUTS BY
   DIVISION
  Honda Division Total       88,875 153,104  -39.7% 387,556 590,361  -33.3%
  --------------------       ------ -------  -----  ------- -------  -----
     Fit                      5,730   8,205  -27.5%  24,137  29,784  -17.7%
     Accord *                22,597  43,728  -46.3% 107,088 166,158  -34.5%
       Memo:  Accord Hybrid       0      16               1     184  -99.4%
     Civic *                 20,723  53,299  -59.6%  97,505 164,994  -40.0%
       Memo:  Civic Hybrid    2,077   4,676  -53.9%  10,745  16,322  -33.1%
     S2000                      116     316  -61.9%     485   1,446  -65.9%
     Insight                  2,780       0           5,445       0
     FCX                          0       0               0       6
     FCX Clarity                  1       0               3       0
  --------------                ---     ---   ----      ---     ---  -----
     Odyssey  *              12,127  12,966   -2.9%  41,884  59,987  -29.1%
     Pilot *                  7,412   8,449   -8.9%  34,127  48,194  -28.1%
     CR-V *                  14,550  19,959  -24.3%  65,197  89,017  -25.6%
     Element *                1,378   2,686  -46.7%   5,521  13,623  -58.8%
     Ridgeline                1,461   3,496  -56.6%   6,164  17,152  -63.5%
     ---------                -----   -----  -----    -----  ------  -----
  Acura Division Total        9,469  14,893  -34.0%  42,802  65,458  -33.6%
  --------------------        -----  ------  -----   ------  ------  -----
     RSX                          0       0               0       1
     TL *                     3,375   4,294  -18.4%  14,518  20,227  -27.1%
     TSX                      2,466   4,564  -43.9%  12,150  13,814  -10.7%
     RL                         169     390  -55.0%     926   2,290  -58.9%
     ---                        ---     ---  -----      ---   -----  -----
     MDX *                    2,455   4,277  -40.4%  11,118  21,137  -46.6%
     RDX  *                   1,004   1,368  -23.8%   4,090   7,989  -48.0%
  ---------                   -----   -----  -----    -----   -----  -----
  Selling Days                   26      27             127     129

  * Honda and Acura vehicles are made of domestic and global sourced parts.
  ** Daily Selling Rate

                                  Month-to-Date           Year-to-Date
                               May    May    DSR**     May     May    DSR**
                              2009   2008   % Chg.    2009    2008   % Chg.
                              ----   ----   ------    ----    ----   ------

                      Hybrid  4,857   4,692    7.5%  16,191  16,506   -0.4%

Japan's May Incentives Boost Hybrid Vehicles Sales

Japanese incentives for ecological gadgets are helping lift electronics sales, according to ministry and industry data, in what may be an early sign of some recovery in a recession-battered economy.

Under a government stimulus package, that kicked in May 15, people who buy energy-efficient flat-panel TVs, refrigerators and air conditioners accumulate "eco-points," which the government promises will convert to discounts or trade-ins for products that have yet to be announced.

Despite the mystery of what the perks may be, the Ministry of Economy, Trade and Industry said electronics sales were up 50 percent during the week after the "eco-point" system started, compared to the same period last year.

Last week they were up 30 percent from a year earlier, the ministry said.

Gfk Marketing Services Japan, a private sector researcher that monitors sales data at about 4,500 electronics stores nationwide, found sales of flat-panel TVs were up 60 percent in the May 18-24 week from a year earlier.

Sales of refrigerators were up 9 percent for that week, Gfk said Monday.

Green gadget incentives are part of a larger government package meant to wrest the world's second largest economy from its worst recession in postwar history.

Japan has also made gas-electric hybrid vehicles tax-free and reduced taxes on other ecological vehicles.

Sales of both the Prius hybrid from Toyota Motor Corp. and the Insight hybrid from Honda Motor Co. are booming in Japan.

Orders for the Prius nationwide have topped 110,000, although Toyota had targeted selling just 10,000 Prius cars a month. Honda's Insight was Japan's top-selling car in April, the first time a hybrid clinched that spot.

A separate cash-for-clunkers incentive of up to 250,000 yen ($2,500) for trading in a vehicle 13 years or older won legislative approval Friday, and will take effect in coming weeks.