Honda Pilot Sales Compared to Others 6/06

[Sportymonk]

Interesting article. Starts with Midsize SUV sales tanking due to price of gas. Comares how long SUVs sit on lots. Pilot sits the least.

http://www.wral.com/automotive/9405766/detail.html

Ditching SUVs: $3 Gas Leads To Tanking Sales

POSTED: 2:43 pm EDT June 21, 2006
WESTLAKE VILLAGE, Calif. -- Nearly $3 a gallon gasoline appears to be taking a toll on midsize sport utility vehicle sales.
Some of the automotive industry's most popular models are midsize sport utility vehicles.
But J.D. Power and Associates said consumer demand for some other models in the segment is continuing a slide that started in January.
The auto information company said only full-size vans sat on dealership lots longer before being sold in May.
SUVs sat for an average of 73 days -- up from 67 at the start of the year -- compared with 80 days for full-size vans.
While some models in the segment, such as the Honda Pilot (46 days to turn), Toyota 4Runner (56) and Jeep Commander (56) were turning quicker than the industry average, others, such as the Mitsubishi Endeavor (140), Dodge Durango (118) and Kia Sorento (105), moved much slower.

Vehicles in the compact basic car segment spent just 35 days on dealer lots -- making them among the fastest-moving autos.
The rise in gasoline prices isn't the only factor, though. Power says a pull-back in incentives, income and family size also influence decisions.
The percentage of midsize utility vehicle owners who trade up to a large utility vehicle has declined since January as well, while the percentage of those trading to midsize conventional sedans has increased, J.D. Power said.

[BubbleSparkxx]

It's an interesting article - but keep in mind that Honda reduced pilot production by 12% in Feburary. Honda advised they were doing this to decrease inventory in preparation for a slow down. These numbers may not be indicative of actual demand compared to competitors, but rather better representative of demand vs. supply.

[jl_ss]

Originally posted by BubbleSparkxx
It's an interesting article - but keep in mind that Honda reduced pilot production by 12% in Feburary. Honda advised they were doing this to decrease inventory in preparation for a slow down. These numbers may not be indicative of actual demand compared to competitors, but rather better representative of demand vs. supply.

Plus Honda was offering substantial rebates really early this year.

[ecsw]

either way, that does mean honda is doing a good job in inventory control for Pilot, isn't it?

[jl_ss]

Originally posted by ecsw
either way, that does mean honda is doing a good job in inventory control for Pilot, isn't it?

An excellent job, but they are not making the same profit as previous years per unit so the story isn't all roses. If the production reductions bring demand in line with supply then they can eliminate the rebates and go back to making higher per unit profit margins.

[5Gs]

Originally posted by BubbleSparkxx
It's an interesting article - but keep in mind that Honda reduced pilot production by 12% in Feburary. Honda advised they were doing this to decrease inventory in preparation for a slow down. These numbers may not be indicative of actual demand compared to competitors, but rather better representative of demand vs. supply.

I actually do think those numbers are indicative of actual demand, for any car company. people want a particular vehicle, they buy it, and therefore the car doesn't sit on the lot any longer.

[jl_ss]

Originally posted by 5Gs


I actually do think those numbers are indicative of actual demand, for any car company. people want a particular vehicle, they buy it, and therefore the car doesn't sit on the lot any longer.

It means that Pilot production numbers are closer to real demand than any other manufacturer, but Honda has achieved that through a reduction in production and offering significant incentives.

[01MDX]

Originally posted by jl_ss


It means that Pilot production numbers are closer to real demand than any other manufacturer, but Honda has achieved that through a reduction in production and offering significant incentives.

OK but exactly which SUV lines out there are not decreasing supply or offering incentives? If anything, Hondas incentives are probably less than many others such as Ford, Chevy, etc. Even the Subie Tribeca (in its first year) is going for several thousand below invoice according to what I have heard. It's definitely not like 2001 when I paid full MSRP for the MDX.

[ramirami]

Originally posted by 01MDX


Even the Subie Tribeca (in its first year) is going for several thousand below invoice

bad example...thats a butt ugly car

[ecsw]

Originally posted by ramirami


bad example...thats a butt ugly car

agree on that one.

[jl_ss]

Originally posted by 01MDX


OK but exactly which SUV lines out there are not decreasing supply or offering incentives? If anything, Hondas incentives are probably less than many others such as Ford, Chevy, etc. Even the Subie Tribeca (in its first year) is going for several thousand below invoice according to what I have heard. It's definitely not like 2001 when I paid full MSRP for the MDX.

Every other SUV out there could have the same or better "days to turn" if they cut production and offered incentives as early as Honda did this year. Honda was offering incentives on the Pilot way before most other mfgrs this year. They are practicing good inventory management.

[5Gs]

Originally posted by jl_ss


Every other SUV out there could have the same or better "days to turn" if they cut production and offered incentives as early as Honda did this year. Honda was offering incentives on the Pilot way before most other mfgrs this year. They are practicing good inventory management.

somehow I don't think the mitsubishi endeavor, dodge durango, and kia sorento would get a better than honda turnover rate even if they cut production and provided massive incentives. just my opinion.

[jl_ss]

Originally posted by 5Gs


somehow I don't think the mitsubishi endeavor, dodge durango, and kia sorento would get a better than honda turnover rate even if they cut production and provided massive incentives. just my opinion.

That makes no sense. For example, If Mitsu sold 10,000 endeavors last year and were on track for 10,000 this year, but they cut production to say 5,000 and added incentives, they would have a very, very short turn time. It all depends what demand versus your production rate is. Honda is adjusting theirs according to good inventory practice. US manufacturers didn't adjust their forecasts/production levels in the previous years as demand waned and they got stuck with a lot of inventory.

[PNW-Pilot]

Originally posted by 5Gs


somehow I don't think the mitsubishi endeavor, dodge durango, and kia sorento would get a better than honda turnover rate even if they cut production and provided massive incentives. just my opinion.

I would agree the sales on the Outlandish are going strong. I don't recall if Dodge has a crossover SUV, but suspect they don't, it seems their quality issues and horrible milage figures are catching up to them. It was good to have Hemi before, but at $3 people are thinking twice.

For the KIA I think it's out of it's league and needs a redesign, I think next year is the new desgin, that cuts into sales also. Not to mention, it's underpoweredfor the engine size, and get worse gas milage also. Soemthing i fail to understand from KIA/Hyundai, 3.8L has 210 horsepower and 2-3MPG less then similar american or Japanese equal. I know they used to get engines from Mitsu, but still...

[jl_ss]

Originally posted by PNW-Pilot


Soemthing i fail to understand from KIA/Hyundai, 3.8L has 210 horsepower and 2-3MPG less then similar american or Japanese equal. I know they used to get engines from Mitsu, but still...

Likely a less efficient drivetrain design or heavier vehicles. Honda's V6 in the Pilot gets the equivalent real world mpg of my Chevy Silverado 5.3L that has significantly more torque/HP and pulls a heavier vehicle.