High Gas Prices Mean Happy Days For Honda Civic
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.
More by Derek Kreindler
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I suspect the sales that the Civic is supposedly stealing are from the Accord, not any other nameplate. Honda buyers are Honda buyers. They walk into a showroom and are showed an Accord. By the time they find one with all the stuff they want, they take one look at the asking price (I didn't say "sticker price"...I know better than that....), and rationalize to themselves, "Ya know, the Civic isn't really so small, is it? It's practically the same size as the 2000 or 2003 or 2005 Accord I drove a few years ago, isn't it? Think I'll actually drive one and see....."
It's worth noting that the 2012 Civic is averaging 34.4 MPG on Fuelly, notably better than the 30.7 of the Focus or the 29.5 of the Elantra, despite its "outdated" powertrain.
I was in the local Honda showroom 2 weeks ago with my adult daughter who needed to replace her totaled 2003 Accord. Current Accord was way too large and bloated, with horrid outward vision. The light, airy feeling of the old Accords was completely gone. The Civic was unattractive to her. Since she really liked her Honda and had no reall problems in almost ten years, she wanted to stay with the brand. She ended up withe the new CRV. Interior, excellent view out and the driving position trumped gas mileage. Her money, her call.
I do see them in fleets, I live near O'Hare airport, and co-worker rented a 2011 Civic in DC on business trip. And, while cool kids may decide what's in style, who actually buys brand new cars are 'un-cool' adults. LOL!