“Everybody has a lot of new product,” said Dennis DesRosiers, president of DesRosiers Automotive Consultants Inc. in Richmond Hill, Ont. “How do you distinguish yourself?”
As for last year, Mr. Takedagawa and Mr. Chenkin point to a shift in the market to pickup trucks and sport utility vehicles as one reason for Honda’s underperformance. That shift appears to have been driven in part by Canadians’ comfort with gas prices above $1 a litre.
“We saw some crazy advertising where a manufacturer is offering a $14,000 rebate on a pickup,” Mr. Chenkin said. “You can buy a lot of gas for $14,000.”
The CR-V and other crossovers performed well in the market shift, but Honda’s Ridgeline, a combination of pickup and SUV, doesn’t compete directly with the Ford F-series, Chevrolet Silverado and Dodge Ram pickups, all of which experienced double-digit sales gains last year.
Mr. Takedagawa said he spent much of last year focusing on reducing a vast oversupply of vehicles at the company’s dealers in Canada, reducing the days supply of vehicles – a key measure in the auto industry – to a healthy 56, from more than 100 last March.
Honda has also restructured its marketing and sales initiatives in Canada so that there are now three distinct brands representing Honda, Acura and the motorcycle and power business.
In addition, about 50 salaried employees and executives have opted for early retirement after the company offered such incentives for the first time in its history in Canada.
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THE NINE LIVES OF THE HONDA CIVIC
1972
First generation
The car that started the Honda ride in Canada in 1973 offered great fuel economy at a time of soaring gas prices, based on its four-cylinder engine, light weight and front-wheel drive.
Canadian sales, 1972: 747
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1979
Second generation
The 1979 redesign included a new version of the fuel-efficient CVCC engine, plus four-door sedan and station wagon versions of the subcompact.
Canadian sales, ’79: 19,880
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1983
Third generation
The boxy 1983 Civic had more interior space and came in three-door, four-door and five-door versions.
Canadian sales, ‘83: 18,903
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1987
Fourth generation
By 1987, Honda was offering five different engines and a double-wishbone suspension. The auto maker began assembling the car in Alliston, Ont., that year and added a second shift of workers in 1988.
Canadian sales, ‘87: 25,831
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1991
Fifth generation
Styling changed dramatically in 1991. A new VTEC engine replaced the CVCC, including a 170-horsepower version.
Canadian sales, ‘91: 50,320
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1995
Sixth generation
The sixth generation, available beginning in 1995, offered evolutionary changes in styling and included the option of a variable speed automatic transmission.
Canadian sales, ‘95: 33,386
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2000
Seventh generation
The Civic continued to get bigger with a 2000 redesign. By now, it was competing in the compact segment in North America.
Canadian sales, 2000: 60,407
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2006
Eighth generation
By 2006, Civic is much more global, tailored to different tastes in different markets and being produced at a Honda plant in China for the first time.
Canadian sales, ‘08: 72,463, an annual Canadian sales record.
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2012
Ninth generation
The 2012 version will start rolling off assembly lines in Alliston and Greensburg, Ind., in April. There are 930,000 Civics still on the road in Canada, representing about 4 per cent of the existing Canadian fleet of 22.3 million vehicles. Cumulative Canadian sales total 1,569,465 since 1973.
Greg Keenan
