Pop quiz; what do increased production, lots of cash on the hood and high gas prices mean for Honda dealers? Lots of Civics moving out the door.
Civic sales are up 45 percent in the first two months of this year, and the model is outselling former top dogs like the Chevrolet Cruze and last year’s compact champion the Toyota Corolla. Honda’s supply chain woes are over (something they were stung by last year) and production is up by 69 percent.
High gas prices are helping the Civic, which is seen as a solid choice in a segment full of fuel-efficient cars. While gas prices may level out this summer, the Civic is set to get a very early refresh in time for the 2013 model year. Add to that strong incentives to help move the 2012 model (one source told us that there was as much as $1,900 per car in incentives for the Civic) and Honda is looking strong in the compact segment – maybe even regaining the small car sales crown, something it hasn’t held since 2002.