Times have been tough for the Detroit Big Three, but times have also been tough on the Japanese Big Three. In recent months, the largest Asian automakers, Toyota, Honda, and Nissan, have been forced to cut production, cut jobs, and alter product releases due to dismal financial results and poor sales. Clearly, the economic concerns extend well beyond Detroit and truly involves everyone from around the world.
Despite steep losses, Nissan plans to uphold its current aggressive product development schedule. Included is Nissan’s upcoming electric vehicle, which Hartford Nissan says remains a high priority according to Nissan management.
Honda also has forecasted trouble ahead, reducing its earnings forecast by about 57 percent. While a profit is still expected according to Honda Philadelphia, Honda has preemptively cut salaries among board members and senior managers. Toyota, now the world’s largest automaker, has also shed salaries, cut production, and expects a loss of about $5 billion. Further cutbacks are also expected. That being said, Westminster Toyota dealers see new vehicles such as the Venza crossover and the all-new Toyota Prius hybrid to boost sales momentum. Already, Irvine Toyota dealers have seen demand for the Venza due to heavy Superbowl advertising and other current incentives.
While all automakers are hurt by dwindling sales here in the U.S., the automotive markets in Europe and Japan are also seeing declining auto sales. Even popular vehicles, such as the Toyota Prius hybrid, are facing declining sales as potential car buyers steer away from new car showrooms. In fact, a Toyota plant in Mississippi cut production of the Highlander in order to produce additional Prius vehicles. However, production there has been postponed, even as interest in the Prius has remained high.
With the U.S. auto market being particularly challenging these days, this year is looking to be a tough one for automakers and car dealers alike. While forecasts already look grim, many industry analysts are expecting the worst, with even more declines ahead in 2009.Volvo Dives into Plug-in Hybrid Technology
Volvo has been struggling amid slumping global sales, but that hasn’t stopped the automaker from diving into research and development. One such as product of its R&D efforts is a new plug-in hybrid that will be due by 2012. Volvo has committed itself to producing a high mileage diesel-electric plug-in hybrid, but it has yet to confirm its plans to sell the vehicle in the U.S.Lexus ES Still Critical to Luxury Brand Lineup
As one Lexus’ most popular models, there will be plenty of drivers that will be happy to see a revamped Lexus ES 350 coming to showrooms later this month. While it may not be a full redesign, the updating certainly brings needed enhancements.Euro Civic Type-R Teases U.S. Consumers
In the U.S., Honda is mostly known for producing somewhat conservative, economical cars. However, the image of Honda outside of the States is far more performance oriented. This is attributed to a range of models that can be had overseas, but remain unavailable here.