HONDA

Honda's July global output jumps on demand for Fit

TOKYO (AP) - Honda reported that its global production in July jumped 17.7 percent to 342,152 vehicles, a record for that month, highlighting the Japanese automaker's solid growth amid serious trouble at American rivals.

While soaring gas prices have hurt the world's auto industry, Honda's global sales have grown, led by the Fit subcompact, which was the best-selling car in Japan in July for the ninth month in a row.

Mazda Motor Corp. also reported robust global production for July - up 25.5 percent to 126,025 vehicles.

The Hiroshima-based partner of U.S. automaker Ford Motor Co. credited healthy demand for Mazda2, sold as the Demio in Japan, and Mazda6, or Atenza in Japan, for the production increase.

Honda Motor Co., the country's second-biggest automaker, produces more autos overseas than at home. Output abroad shot up 19.3 percent to 229,996 vehicles, while domestic production rose 14.5 percent to 112,156, the first rise in 11 months.

Behind the growth was record production in North America and Asia in July, it said.

July's total output was shy of Honda's monthly production record of 363,532 vehicles last October.

All the world's automakers are struggling to shift their product offerings from the more profitable but gas-guzzling trucks and sport utility vehicles to smaller models.

Honda's exports declined in July for the third straight month at 56,415 vehicles, down 6.9 percent from a year ago.

Despite a falling dollar that hurts the earnings of global Japanese exporters, Honda reported a record 179.6 billion yen (US$1.68 billion) profit for a fiscal first quarter.

U.S. auto sales slumped to a 16-year low in July as automakers failed to keep up with consumers' growing demand for smaller, more fuel-efficient vehicles.

American sales at Ford, General Motors Corp. and even Toyota Motor Corp. are falling by double-digits.

Honda had reported U.S. sales increases in the last few months as consumers flocked to its fuel-efficient cars.

But Honda's sales fell 2 percent in July, as a 22 percent drop in truck and SUV sales dragged on a 14 percent surge in Honda's car sales.

SOURCE: http://thestar.com.my