by Patrick McCreless
LINCOLN -- The factory floor was dim, save for a few strobe lights.
Suddenly the sound of a revving engine reverberated through the building, the lights came on, and Honda Manufacturing of Alabama’s first assembled 2011 Odyssey was revealed.
A project three years in the making at the Lincoln plant, the new-model minivan represents, for Honda officials, a transport to a brighter future for the company.
Like the rest of the automotive industry, the American Honda Motor Company took a big hit after the recession began in 2008. But after two years of struggle, the company has begun to pull itself out of a sales slump and expects its new-model minivan to stimulate that trend.
With expectations so high about the new vehicle, excitement during the unveiling at the plant Tuesday was understandably high, particularly for Jason Dean, who was the project leader for the 2011 Odyssey at the facility.
“This is the most exciting time of my life except for my marriage and two children,” Dean said shortly after driving the new vehicle off the product manufacturing line.
Dean said his feelings about the minivan were echoed by many of the plant’s employees due partially to what it represents – a further push out of the recession for the company.
“Some of the biggest challenges for us was the economy at the time,” Dean said. “But we’re nearly through it. “(The employees) are excited about this car … they are ready to get this going,” Dean said.
Chuck Ernst, HMA senior vice president, agreed that the new minivan would improve company sales, especially since the previous Odyssey has been the best selling vehicle of its class for the previous two years.
“To combat a soft economy, it can’t get any better than launching a new model,” Ernst said. “We expect to hit our sales target for this.”
From what Dennis Virag, president of the Michigan-based research firm Automotive Consulting Group, has learned about the 2011 Odyssey, he expects the company to do well in sales for the coming year.
“It’s a very nice vehicle,” Virag said. “It’s going to be best in class in terms of fuel efficiency. They’ll do well in sales.”
Honda has struggled with slumping sales for some time now.
According to numbers released by the company, Honda sold 417,979 of its main product-line vehicles during its fiscal year between July 2007 and July 2008, which include the Odyssey, Ridgeline Accord and Pilot. Between July 2008 and July 2009, those numbers dropped considerably to 281,753 vehicles sold.
This year, however, sales have improved considerably.
Between July 2009 and July 2010, Honda sold 302,508 vehicles.“It’s been a good year compared to the last two years … though we still are not up to where we were,” said HMA spokesman Ted Pratt.Along with sales, Honda has shed some of its workforce during the recession.
Before the recession, the plant employed 4,500 workers. Around 4,100 people work at the plant today. Ernst noted, however, that employment at the plant has remained relatively steady for most of 2010.
Part of the reason for the increase in sales this year was due to changes Honda officials implemented at the Lincoln plant. Before the recession began and gas prices skyrocketed, the plant was only producing 2010 Odyssey minivans and Pilot SUVs, both of which are not particularly fuel efficient.
Then gas prices began to rise and sales of the two models started to slide.
In response to consumer demand, the plant was augmented in 2009 to also produce the more fuel efficient Ridgeline pickup truck and the Accord V-6 sedan. HMA is the exclusive global production source for the Odyssey, Pilot and Ridgeline.
While the recession hurt Honda, the company has fared better than others in the automotive industry, Virag said.
“Honda has been doing well,” Virag said. “They were fortunate to have a good portfolio … such as a small SUV base and not a lot of large SUVs.”
Virag said other manufacturers were trying to sell too many vehicles with poor gas mileage during the height of the recession.
“When the downturn hit, Honda was less impacted than other manufacturers,” Virag said.Virag added that Honda has also been helped by Toyota’s highly publicized vehicle recalls earlier this year.
“I think it has helped all the manufacturers and has helped Honda somewhat,” Virag said.
Specific details about the new Odyssey, including cost, will not be released until late September when the vehicle arrives on dealership floors. However, what is known is the new minivan is a complete redesign of the previous model.
“Compared to the old model, this is more intuitive to use for drivers and passengers,” Ernst said.
“And from a comfort point of view … it has a very appealing comfortable interior.”
Source;
http://annistonstar.com/bookmark/9342123-New-Honda-minivan-launched-in-Lincoln
Oct. 27 (Bloomberg) -- Honda Motor Co., Japan’s third- largest carmaker, will start selling a hybrid version of its Freed minivan tomorrow as it seeks to boost sales among domestic consumers looking for more fuel-efficient cars.
