
Originally Posted by
niky
Brand perception and:
If you sell at a premium and make more margin on your cars... even if you sell fewer cars, you are still good.
As an example: Mitsubishi dealers sell a crapload of Mirages, but their unit margins on these small cars are horrible. Somewhere in the 4% range... or even lower. Without financing and customers coming back for PMS, they'd be in the red on each car sold. (the dealers that is. The Distributor/manufacturer will still be okay at lower margins... they've got the volume)
Honda is seeing everyone else play the high volume / low margin / financing promo game... and they're having nothing of it. They're selling on brand image and charging more, and people are still buying.
They may have lost some of the technological edge, but I'd put their new 1.5 CVT up against any other engine in the class in terms of performance and fuel economy... it's a really great combination. But smart money is still on the 1.5 MT, in terms of long-term ownership.