The worldwide recession has had a negative effect on most corporations. Even the Honda Motor Company. A leader in any industry it decides to enter HMC has had to cut back in these difficult times. The company recently announced that they will be closing their European car and motorcycle design studios in Germany. This follows the closing of their British factory for the first four months of the year.On this side of the pond the company shut down their motorcycle plant in Marysville, Ohio where they have been building Gold Wing motorcycles since 1979. The move was announced prior to the global meltdown so it probably had more to do with Honda’s long term plans than the difficult economy. In the future all Gold Wings will be imported from Japan.
On the motorsports side Honda sold their Formula 1 team in March due to the financial crisis. The company had dominated F1 as an engine supplier to McLaren in the late 80’s and early 90’s, but their return to the championship as a team had produced marginal results. The team was sold to Ross Brawn who changed the cars over to Mercedes-Benz power, and at this point in time the team’s two cars sit first and second in the world championship. In motorcycle racing news Honda has decided not to participate in the AMA’s Superbike Championship in 2010. In making the announcement the company said, “the current AMA/DMG racing environment does not align with our company goals”, so the decision to leave the championship has more to do with their disagreements with the sanctioning body than it does with current economic conditions.
While Honda’s automotive sales generate more profits for the company, motorcycle sales play an important role in the company’s bottom line. Former president and CEO Takeo Fukui talked about the fiscal impact of motorcycles, “History shows that motorcycles remain strong in a difficult market environment and have always supported Honda in difficult times. People showed renewed interest in the value of motorcycles which consume less fuel for commuting purposes as well as for their easy-to-own/easy-to-use efficiency.”
The U.S. is an important market for Honda, but for the most part motorcycles in this country are considered luxury items. With a limited amount of growth expected in the U.S. and other countries HMC will be looking to other areas to increase their market share, “Honda will continue to look to the newly emerging countries in regions such as Asia and South America where motorcycles are being used for everyday transportation, long-term and steady market growth is expected despite some external factors such as changes in economic conditions. Worldwide, the company is focused on developing battery technology in order to produce a quality electric motorcycle for consumers”.
That said the company is still clearly focused on creating motorcycles for markets like the U.S. and Europe. A great deal of media coverage has been dedicated to their newest bike the VFR 1200. The bike will have it’s official introduction on Wednesday and preliminary information from Honda can be found a this website.
