Honda Chides Rivals Using Fleet Sales, Subprime Lending
Honda Motor Co., losing share in the growing U.S. auto market, chided competitors for using low-margin fleet sales and over-reliance on subprime lending to boost sales, reported Bloomberg.
Excluding rental and business-fleet sales, which Honda eschews, Accord topped Toyota Motor Corp.’s Camry, the U.S. passenger-car volume leader, with 181,939 deliveries in the first half, Honda said, citing IHS Automotive data. Camry retail sales were 178,183, according to IHS’s Polk unit. Honda, which doesn’t have a fleet sales division, also isn’t using subprime lending or loans with durations as long as seven years to boost business, John Mendel, executive vice president of U.S. sales, said yesterday on a conference call.
“In addition to a heavy reliance on fleet sales to boost volumes, we are seeing some of our competitors adopt short-term tactics to stoke sales, like big jumps in subprime lending and 72-month terms,” Mendel said, without naming specific companies. “We have no desire to go there.”
Honda, fifth in U.S. volume, had a 1.3 percent drop in sales of Honda and Acura brand autos this year through July, while industrywide deliveries expanded 5 percent. The Tokyo-based company attributes the slowdown to the delayed release of its redesigned Honda Fit hatchback and Acura TLX sedan, both of which were due in the first half of 2014.
The company’s Civic compact and CR-V sport-utility vehicle also are the retail sales leaders in their segments.
Honda avoids large-scale fleet sales as a long-term strategy to maintain resale values for its models that rank among the industry’s highest.
‘Dark Underbelly’
“We probably should care and differentiate between retail and overall sales, because retail sales are generally much more lucrative,” said Jack Nerad, senior analyst for Kelley Blue Book. “That’s why Honda is so adamant about this.”
Rising incentives, fleet sales and ever longer loans are the “dark underbelly” of the U.S. auto sales expansion this year, Nerad said.
Industrywide incentives averaged $2,883 per vehicle in July, up 13 percent from a year earlier, according to Autodata Corp. Honda spent an average of $1,834 per vehicle, up 3.7 percent from a year earlier, while Detroit-based General Motors Co., Ford Motor Co. and Fiat SpA’s Chrysler Group each offered customers at least $3,400 per vehicle. Per-vehicle spending for Toyota averaged $2,188 in July and Nissan Motor Co., which has a goal of outselling Honda in the U.S., offered $2,891, according to Woodcliff Lake, New Jersey-based Autodata Corp.
2014 Goal
Along with Accord and Civic topping Toyota’s Camry and Corolla as the best-selling cars in their categories to individual buyers, Honda’s CR-V sport-utility vehicle ranks as the retail leader among SUVs and has the most total sales of any SUV in the U.S. for the 10 years through June, the company said.
Even with the slow start that pulled down Honda’s market share to 9.1 percent through July from 9.7 percent a year earlier, the company will post its best-ever U.S. sales in 2014, Mendel said in a phone interview. Combined Honda and Acura auto sales peaked at 1,551,542 in 2007, before the U.S. recession hit.
“We’ll beat that by at least one,” he said.
Honda’s U.S. sales unit is based in Torrance, California. The company’s American depositary receipts fell 0.1 percent to $34.08 at the close in New York yesterday. They have declined 18 percent this year before today.
More Industry

Charger Network Growth Slows
Despite a projected increase in public EV chargers in 2026, charging infrastructure remains a top concern for consumers as the gap between the most and least EV-friendly places remains substantial.
Read More →
Lenders, Consumers Take on More Auto Loan Risk
September records loosened credit access the most in over a decade as buyers took advantage of the conditions to afford trading, though loan applications fell.
Read More →
Next-Gen Hybrids in Sight
Dealerships can expect to see revamped hybrids from Honda next year as the company rolls out a new system and model lineup.
Read More →
Gem State Stores Change Hands
A larger auto group founded in the industry’s early years sold two franchises to a neighbor group that's on a growth spurt.
Read More →
Charging In Motion
Honda has been researching wireless in-motion charging for electric vehicles since 2025, and new technology developments have put it a step closer to a final product.
Read More →
Twin Cities Stores Sell
Minnesota-based Walser Automotive Group made what it called the most significant acquisition in its history with a three-rooftop deal in Minneapolis.
Read More →
U.S. Auto Sales Still Below Prepandemic Levels
Mobility Global industry observers don’t expect the market to return to the higher volumes that became routine before Covid but to stay well below its potential.
Read More →
The Powertrain Shift
Electric-vehicle owners are backpedaling, according to new data, with product availability driving many to shift back to gas-powered engines.
Read More →
Achromatic Autos
The shades that dominate the U.S. car market don’t call attention to themselves, though grayscale may have plateaued after a 30-year upswing, research shows.
Read More →
Used-Vehicle Affordability Worsens
Listing prices in August defied seasonal trends, rising above $27,000 for the second time this year.
Read More →