Honda's Sales Chief Warns Of "Stupid Things" As Accord, CR-V Top Retail Sales Charts
In this year’s red hot new car market, the Honda Accord and CR-V have apparently captured the top spot in both new car and SUV retail sales through the first half of 2014, according to Polk registration data. But John Mendel, Honda’s head of sales, had some pointed words for the industry as a whole, and the state of the American auto market.
Speaking to Automotive News, Mendel said that despite Honda’s slipping market share, Honda wouldn’t do“stupid things in the short-term that damage the person who bought yesterday.”
Criticizing longer loan-terms and looser underwriting standards for new vehicle loans, Mendel said
“It’s a very, very short-term tactic…especially in the subprime area, because you not only are pulling sales forward, you’re probably pulling people out of used cars into a new car that maybe they can’t afford.”
Stating that the new car market was “near the top”, Mendel said that Honda would continue to focus on retail sales, rather than pivot towards more fleet delivers like many of its rivals do. Even so, Honda’s sales are down 1 percent year to date, while incentive spending has increased drastically – as much as 55 percent for its passenger car lineup -, as Honda aims to stay competitive against competitive brands and make new car leases more attractive.
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When the headline said stupid stuff, I thought he meant the Accord CrossTour.
Well I did my part to help, I purchased a new Civic four months ago...I'm counting on it lasting to 200k, and still be worth something then. :)
Another bubble forming up fast. Look at the crazy high stats for car sales numbers. Remember the recession, take steps to conserve the value of whatever money/investments you have managed to accumulate so far. Just sayin'.
I used to work at a dealer. Gopher young kid. (Any job no one else wanted to do) As with many things in America, people can't afford stuff in general. Debt can be wicked, and most people really don't balance their lives and expectations to handle it. Oh, I also taught Finance at top 20 biz school; assisting the professor. My father grew up in the depression, enlisted in Navy after Pearl Harbor, and served 20 years; being on two ships that were struck by Japanese torpedoes. (CV-7 and CVL-22) He taught me to live beneath my means. Many used, affordable, decent cars out there to choose from. Learn how to repair them yourself. YouTube is treasure trove of How-To videos. I would like to have ONE nice car before I die. And enjoy others … as I can afford them, through various ways. Cheers.