Honda shuts down April and May

ramellous1

http://news.bbc.co.uk/1/hi/business/7833280.stm

They get paid 80% for 2 months but owe all the time back so that is a lot of extra saturdays if things get back to normal.
I work for a supplier to all these firms so the knock on effects are huge.

Edit, My mistake, I've changed the header.

BettiePage

They were shutting anyway for Feb/March. They're now also shutting for April/May too.

Thrugelmir

ramellous1 wrote: »

http://news.bbc.co.uk/1/hi/business/7833280.stm

They get paid 80% for 2 months but owe all the time back so that is a lot of extra saturdays if things get back to normal.
I work for a supplier to all these firms so the knock on effects are huge.

Honda have already been shut for a 4 week Xmas break. In effect the factory will be closed for 4 months. February, March, April and May. The worry must be, when will it reopen?

Green shoots? All I can see on the horizon is the desert sands blowing in. ( locally that is).

The knock effects will be enormous both to direct suppliers and the wider local economy.

Very little chance of the housing market in Swindon improving on the basis of this news.

bo_drinker

Somebody will be along in a few weeks to tell us they are shutting June and July also. There are 2 car transporters moving 7000 cars to storage, it will take months as they can only do 2 journeys each a day. 7000 cars the showrooms don't want.

WestonDave

Well if they started offering some decent deals they might shift some! There is little point in stacking up £m's in inventory and incurring additional storage charges etc just to maintain theoretical profits. The going rate for a Civic may well have been £15k 18 months ago but I bet they might shift a few if they chopped that to nearer £12k. Is it really better to have a theoretical potential sale of £15k rusting in a car park or £12k in the bank.

Its not just honda either - if you go round the showrooms the salesmen are quick enough to jump on you but if you talk about deals there's nothing doing. Everyone else is having to cut prices to sell - same goes for cars otherwise they will come up to the next model revision and have stacks they have to flog at cut prices anyway.

BettiePage

http://www.carmagazine.co.uk/News/Search-Results/Industry-News/UK-2008-car-sales-analysis-winners-and-losers/

Below are the full UK new-car sales figures, arranged by order of percentage growth or decline. The companies at the top of the page can congratulate themselves; the lower down the page you go, the deeper the do-do.


WINNERS
Seven manufacturers managed to produce positive growth last year. Disregard the quirks of MG and Hummer sales, and you're left with a handful of brands who enjoyed genuine success in a hard market. Total 2008 UK new-car sales, % change over 2007.

MG 133 +13,200%
Hummer 174 +185%
Smart 7526 +43%
Dodge 3911 +20%
Volvo 33,358 +11%
Jaguar 20,346 +9%
Kia 31,324 +7%


DOING OK
A baker's dozen held static or posted single-digit decline in 2008. Interestingly, this category included the three German premium giants, but the decidedly mainstream Nissan should be congratulated for holding level in a tough market. Total 2008 UK new-car sales, % change over 2007.

Audi 100,845 0%
Chevrolet 18,372 0%
Nissan 66,336 0%
Mazda 49,858 -2%
Daihatsu 4841 -4%
Hyundai 28,036 -6%
BMW 113,132 -7%
Fiat 55,325 -7%
Skoda 37,100 -7%
Ford 322,514 -8%
Lotus 647 -9%
Mercedes-Benz 74,883 -9%
VW 179,189 -9%


LOSERS
The majority of car companies suffered double-digit falls last year. The further down this list you go, the redder the faces in the boardroom. The problem is, the coming 12 months are likely to be at least as tough... Total 2008 UK new-car sales, % change over 2007.

Vauxhall 298,912 -10%
Daimler 33 -11%
Toyota 105,717 -11%
Mini 40,736 -15%
Seat 29,397 -16%
Citroen 81,237 -17%
Mitsubishi 15,552 -18%
Alfa Romeo 5950 -19%
Peugeot 118,701 -19%
Perodua 624 -19%
Honda 83,805 -21%
Suzuki 26,095 -21%
Subaru 4668 -23%
Bentley 1542 -27%
Aston Martin 1565 -29%
Renault 89,570 -29%
Land Rover 32,567 -30%
Porsche 5918 -31%
Saab 16,074 -32%
Lexus 10,122 -33%
Jeep 4062 -34%
Proton 1518 -39%
Cadillac 171 -50%
Ssangyong 629 -53%
Corvette 13 -75%
Tata 1 -80%
Rover 2 -97%

itsnever2lateisit?

Even the MG figure is worrying, a limited edition of 500 cars which according to NAC-MG were almost sold out in the autumn. I guess the wannabe owners cant get the loans

As far as Honda and the likes, they might be able to shut up for 4 months, but their suppliers might have to shut for good. If that were to be the case would the Swindon plant still be viable?

bo_drinker

Interesting to see Jaguar amongst the winners and they have been bleeting to Gordon for a handout, he should tell them where to get off.

jungli_jim

Apparantly green shoots were found in the factory, it needs to be shut to sort....said a government gob!!!!!

Conflict

Good luck ramellous1, hope it turns around for your sake.

As to the figures, Renault and Peugeot are the most worrying. Kinds of explains why the French have only done a partial bailout so far, as even they know if the sales are dropping so fast (for a large car maker) they are probably dead.

As to the UK and Land Rover position - if they aren't nationalised within 24 months I will be amazed. They are far to important to certain key areas around the world and the UK to have any danger of going under - well specifically the Defender is far to important

mvengemvenge

WestonDave wrote: »

Well if they started offering some decent deals they might shift some! There is little point in stacking up £m's in inventory and incurring additional storage charges etc just to maintain theoretical profits. The going rate for a Civic may well have been £15k 18 months ago but I bet they might shift a few if they chopped that to nearer £12k. Is it really better to have a theoretical potential sale of £15k rusting in a car park or £12k in the bank.

Its not just honda either - if you go round the showrooms the salesmen are quick enough to jump on you but if you talk about deals there's nothing doing. Everyone else is having to cut prices to sell - same goes for cars otherwise they will come up to the next model revision and have stacks they have to flog at cut prices anyway.

Yes, I've never understood why everyone else but car makers can sell at 20%-50% off. If the reason is dealership overheads, sell direct from the factories. Cut out the middle-men.