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Honda's fuel-efficiency strategy pays off
Honda is experiencing growth in the subcompact and passenger car categories with their Civic and Fit cars out performing other manufacturers on the sales floor. As prices are soaring for petrol, SUV sales are on a sharp decline. The US domestic manufacturer giant General Motors is feeling the pinch; the Hummer brand is under a rethink as fuel efficiency is the hot word these days.
Interestingly Toyota and Nissan are not experiencing the same growth as Honda. Both manufacturers have been focusing on supercars the last several years whereas Honda, other than their Ridgeline truck, has managed to keep a good eye on the smaller cars in the US market. In May, the Civic became the top-selling vehicle in the United States, displacing the longtime champion, Ford Motor Co.'s F-Series trucks, as consumers traded in gas guzzlers for more frugal models.
In such high demand Honda cannot keep up with such short inventories. Rumor has it the Honda Fit is sold within five days of reaching the showrooms. This is something Toyota and Nissan can jump in and take advantage of the situation.
With petrol prices spiking do not be suprised to see less trucks and more small cars on the road.
-Richard
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