The Honda corporation is having problems within the business, what are they?
If your referring to the decrease in automobile sales its not the corporation; its the market. The Japanese domestic market has been in the tank for the last 3 years; the American market dropped from almost 17 million new cars in 2006 to a forecast of less than 16 million in 2008. Honda’s year-over-year sales are down but they are maintaining market share in the U.S. Most of the U.S. market problems are due to the “credit crunch”; simply said, most vehicles are financed and most prospective customers can’t get financed because of their personal financial positions. The sub-prime mortgage market fiasco also affects the same class of sub-prime car buyers. To make matters worse, most people who are in trouble with their home loans bought a car financed into the loan so as home foreclosures rise so will defaults on car loans and repossessions. Honda is in a much better financial position than most companies and they will weather the storm. Their strength is that most of their cars are prod
