Within months of the Honda HR-V arriving in North America, it seemed as though the Honda Fit was dead to rights.
Last summer, U.S. sales of the Honda Fit tumbled 35 percent as the starting point of a second-half in which Fit sales would plunge 54 percent.
The cause was obvious, or so it seemed. Consumers don’t want subcompact cars, consumers want subcompact crossovers.
With the subcompact crossover, the Honda HR-V, lining up alongside the subcompact car, the Honda Fit, inside Honda showrooms, consumers were driving away in HR-Vs 80 percent of the time.
Fast forward one year: it seems as though Honda has remedied the situation. Not only are U.S. sales of the Fit rising rapidly, the Honda HR-V continues to strengthen its share of the American subcompact crossover market.
How’d they do it? Don’t tell a certain presidential candidate, but it’s all because of Honda’s Japanese-Mexican arrangement. (Read More…)