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Honda in Europe

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While Ford is shrinking its operations in Europe Honda continues to expand in the region. They just announced a diesel Honda civic that gets 65 MPG. This car fits in great with the tastes and preferences of the European market. Diesel is much more popular there, small cars are popular, and like everywhere in the word the European enjoy good MPG. The new civix out performs even the Toyotas Prius’ 53 MPG. I wonder if Honda will gain a larger market share in the European market with products like this.


  1. Follow up if you can with sales data. Ford has multiple plants in the EU, so can contemplate closing one. Honda can’t reduce capacity and still stay in the market. Furthermore …
    … even in a steep downturn auto companies will continue developing new vehicles. The launch of a vehicle will be penciled in several years in advance, engineers can only work on a limited number of projects simultaenously and typically some or all of those are “replacement” vehicles (same vehicle niche, if not same vehicle name). In contrast, drivetrain projects typically take longer to engineer and remain in production longer. The main point here is that Honda’s plans were well underway before the EU crisis began unfolding.
    I know they’ve an assembly plant in England, which is where the engine will be made. They have a previous diesel, but bigger and not turbo-charged. So this is an evolutionary product, moving to the small+turbo in line with the overall (EU) market. Evolution isn’t always in small steps; Honda has strengths in power plants. But I don’t know how the VW diesel Polo compares, my quick calculation is combined of 54 mpg and 60 mpg highway.
  2. peaseley peaseley

    Here is the sales data but it is only through October 26, 2012.

    They’re sales are up about 162% from last september at this time, which is the highest higher growth then in any other market. It looks like Honda is having success and it looking to build on it. With an innovative new car like this is looks like Honda has a lot of potential in the European market.

  3. Trey Hatcher Trey Hatcher

    Thanks for the article. It looks pretty clear that foreign automakers such as Honda are continuing to have success abroad, while U.S. automakers are struggling to find their identity abroad. Hondas cars do seem very well-suited for the European market, particularly due to their small size and diesel capabilities, given that diesel is cheaper abroad (as it should be, given its lower refining requirements). As Ford and other U.S. automakers exit Europe, it seems Honda and Toyota’s market share will only increase in the coming years.

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