P&A Providers & Administrators
MenuMENU
SearchSEARCH

Honda Scrambles to Revamp Civic

December 20, 2011
3 min to read


ROMULUS — Honda is scrambling to revamp its Civic just eight months after a new version hit showrooms, and critics say it's an admission that the compact car fell short in quality and handling.


The revamp, to come by the end of 2012, is rare because new models aren't usually overhauled for at least three years. Honda executives say they're simply trying to stay ahead in an increasingly competitive small-car market, reported msnbc.com.

Ad Loading...


The move comes as small car sales are on the rise in the U.S., and more people choose them because of worries about gas prices and car payments. Compacts also are no longer the cramped econoboxes of the 1980s and 1990s, and they have many of the same amenities as larger cars.


The new Civic was panned by critics when it started arriving at dealerships April 20. Consumer Reports magazine said it was less agile than its predecessor, and its interior quality was worse. The magazine refused to give the Civic its coveted "Recommended Buy" rating, saying that the braking distances were long and it suffered from a choppy ride. The car's sales ranked fourth among U.S. compacts from May through November.


The previous Civic, which came out in 2005, was known for its sporty driving, high-quality interiors, lack of noise and excellent braking, says David Champion, senior director of auto testing for Consumer Reports.


"The new one seems to have fallen apart in those areas," says Champion, who thinks that Honda cut costs with the 2012 version.


Honda also recalled more than 1,000 of the 2012 Civics because a fuel line could leak due to a manufacturing error.

Ad Loading...


Honda has told dealers a reworked Civic will arrive before the end of next year. The car starts around $16,000, and a base model with automatic transmission gets 32 miles per gallon in combined city and highway driving. Its price and fuel mileage are about the same as its competitors.


American Honda President Tetsuo Iwamura said Tuesday that the company will improve the Civic's drivability, but he stopped short of saying exactly what the company will do to the rest of the car.


"It's about how do we get two or three laps ahead of the competition," says American Honda Executive Vice President John Mendel.


In the past two years, the usual compact-car race between the Honda Civic and Toyota Corolla became a free-for-all that included high-quality entries from Chevrolet, Ford and Hyundai.


The competition will be good for buyers because companies will offer better small cars and could discount them as the competition heats up, Mendel said. He said Honda would continue to show restraint on discounts, selling its products based on their value rather than price.

Ad Loading...


The battle between the Civic and Corolla for the rank of top-selling compact in the U.S. was also upset by the March 2011 earthquake and tsunami in Japan. The disasters disrupted production, and output was again hampered by flooding in Thailand in the summer.


Honda production only recently returned to normal, and Mendel doesn't expect dealers to be fully restocked until March.


At the same time, the competition has rolled out new models like the well-received Chevrolet Cruze, Hyundai Elantra and Ford Focus.


From May through November, the only full months that the new Civic was in showrooms, the car's sales were nearly 109,000. The Cruze led the way at almost 140,000, followed by the Corolla at 118,000, and the Elantra at 110,000.


But last month, with supplies moving toward normal after the earthquake and floods, the Civic led all compacts in sales, according to Autodata Corp.

Ad Loading...


Despite the criticisms, the Civic still has a strong following of loyal customers, says Jeff Dyke, executive vice president of operations for Charlotte, N.C.-based Sonic Automotive Inc., a dealership chain that includes Honda dealers.


"I can't keep one on my lot," he says.

More Industry

Kia Niro SUV in gold color parked outdoors
Industryby Hannah MitchellSeptember 1, 2026

Kia Closes Out Summer With a Bang

Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.

Read More →
Outside of Auto Park Ford dealership
Industryby Lauren LawrenceSeptember 1, 2026

Indiana Dealership Changes Hands

A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.

Read More →
Three men standing in front of two classic cars handing off gift.
Industryby Hannah MitchellAugust 25, 2026

Texas Dealership No Longer in the Family

The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.

Read More →
Ad Loading...
Outside of modern car dealership “Genesis of San Bruno
Industryby Lauren LawrenceAugust 25, 2026

Genesis Grows California Presence

The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.

Read More →
Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
EV charger inserted into dark-colored car port
Industryby Hannah MitchellAugust 18, 2026

EV Market Humming Along

July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.

Read More →
Ad Loading...
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
blue sky, yellow and orange rollercoaster with riders going up an incline
Industryby Lauren LawrenceAugust 12, 2026

EV Sales Recover in Q2

The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.

Read More →
Photo of blue Toyota Prius parked next to body of water with city skyline in background
Industryby Hannah MitchellAugust 5, 2026

The Cheapest Hybrids to Fuel

The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.

Read More →
Ad Loading...
white SUV parked in front of a body of water with a gray sky background
Industryby Lauren LawrenceAugust 5, 2026

Hybrids and SUVs Gaining Ground

The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.

Read More →