Japanese manufacturer Honda is forecasting a
“positive” 2012 in Europe although revised global figures belie a
pessimistic fourth quarter of 2011 for the manufacturer.
Despite worldwide income from automobiles and
net income overall expected to be down for the financial year
2011/12, European sales figures are expected to total 193,680 units
in 2012, up 22% on 2011.
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Globally, Honda sold 830,000 cars in the three
months to 31 December 2011, down slightly on the 855,000 sold in
the same period of 2010; and sold 2.149 million cars in the fiscal
year (1 April) to the end of December, compared to 2.652 million in
the first nine months of the fiscal year 2010/11. (Honda also notes
that some sales of cars financed on residual values by their
captive finance provider are counted as operating leases, not unit
sales.)
According to Kate Saxton, corporate affairs
manager at Honda UK, “2012 is looking a lot more positive.”
Pent-up demand
Honda’s worldwide net income was down ¥33.4bn,
year-on-year, and down ¥349.6bn, year-on-year, 1 April to 31
December.
As such, Honda has revised its forecasts for
the fiscal year 2011/12 and now predicts an operating income of
¥200bn, down ¥369.7bn on the results for the fiscal year 2010/11;
and a net income of ¥215bn, down ¥319bn.
The manufacturer attributes the figures to a
combination of the Japanese earthquake and tsunami, the Thai
floods, the relative value of the yen, and a consolidation of
operating income begun in October 2011.
“The impacts we’ve had are circumstances
beyond our control,” said Saxton. “The market demand has been there
for Honda UK.
“Hopefully, there’s a lot of pent-up demand
coming through.”
The company expects to sell 362,000 less cars
worldwide in the period 1 April 2011 – 31 March 2012, than it did
in the same period 2010 – 2011.
In Europe, however, Honda expects more than
20% growth in 2012 attributable to the Civic, new CR-V and 1.6l
diesel Civic and is prepared to back up the forecast with
production figures.
According to Saxton, the Honda’s Swindon
factory, its factory for the European market, is planning to almost
double production to 180,000 units and has hired 500 manufacturing
staff.
richard.brown@vrlfinancialnews.com
