Early sales of Honda's Ridgeline truck disappoint

[BMWDave]

Early sales of Honda's Ridgeline truck disappoint; high prices pegged as main problem
AUTOMOTIVE NEWS
Posted Date: 8/1/05
The Honda Ridgeline has a price problem.

The innovative V-6 pickup costs about $10,000 more than other compact trucks in the United States. And that is hurting sales, says Koichi Kondo, president of American Honda Motor Co.

He says Honda could put incentives on it if sales continue to disappoint, but it won't do so immediately. Honda typically uses cut-rate financing, subsidized leases and dealer cash to boost sales.

"We will take measures if needed," Kondo said at a press event in Tokyo two weeks ago.

Honda broke ground with the Ridgeline by creating it from the Odyssey minivan platform. Engineers welded a frame to the Odyssey's unibody.

Honda marketers have said it will appeal to upscale customers who own other Honda vehicles, motorcycles and power equipment.

It's difficult to get an exact read on the Ridgeline's popularity because it only went on sale in March. Honda sold 3,585 Ridgelines in June. Kondo said the goal is to sell 50,000 a year.

According to Power Information Network data, the Ridgeline's average transaction price in July was $31,602, nearly $10,000 more than the average price of other compact trucks. The Power Information Network is an affiliate of J.D. Power and Associates.

Honda executives in America acknowledge the higher price but say the Ridgeline provides more features, such as standard all-wheel drive, a comfortable ride and a lockable trunk built into the cargo bed.

Jim Roland, general sales manager of Heritage Honda in Baltimore, says: "It's a lovely vehicle. I think it's a tad overpriced. It's more or less priced up with the bigger trucks, but it's a small vehicle."

Although incentives could spur sales, Roland doesn't want to see Honda employ the tactic. He favors a more drastic approach: "I feel that they ought to drop the price - period."

Yuzo Yamaguchi contributed to this report

[ifcar]

While those sales aren't bad at all for a $31K ATP, they still could be doing better. I think what Honda ought to do is add enough feature content to the lower-priced base RT version and make more of them available, instead of forcing upgrades to the higher-end versions. Selling more of the sub-$30,000 versions could really help them.

[TBR]

The problem is the price, it is too expensive for what it is. If anything it should be cheaper than its competitors, not more expensive.  

[Tom]

Sales are usually telling of the product.

[ifcar]

Not at all. Does the fact, for example, that the Silverado/Sierra is the best-selling vehicle in the US mean that it is the best vehicle in the US?

[Tom]

No, sales compared to other competing vehicles in the same segement are telling of quality and overall apealingness.

[FlatBlackCaddy]

Not at all. Does the fact, for example, that the Silverado/Sierra is the best-selling vehicle in the US mean that it is the best vehicle in the US?

Agreed, look at the Q45. That thing had horrible sales numbers. But everyone i run into who owned one said that it was a fantastic car, that was very underrated.

[Tom]

Not at all. Does the fact, for example, that the Silverado/Sierra is the best-selling vehicle in the US mean that it is the best vehicle in the US?

Agreed, look at the Q45. That thing had horrible sales numbers. But everyone i run into who owned one said that it was a fantastic car, that was very underrated.

They are fast and powered by the right wheels.  Nice cars, no?

[Run Away]

I've seen lots of Ridgelines around.

[FlatBlackCaddy]

These sales aren't surprising to me, i didn't expect this truck to do too well other than current die hard honda fans buying these up and obviously thats what others expected.

"Honda marketers have said it will appeal to upscale customers who own other Honda vehicles, motorcycles and power equipment.

Honda executives in America acknowledge the higher price but say the Ridgeline provides more features, such as standard all-wheel drive, a comfortable ride and a lockable trunk built into the cargo bed."

If you own a honda car, motorcycle, lawnmower and powerwasher i would consider you in the "Honda fanatic" catagory. Which is about the only market for this vehicle. As for the second paragraph and the ones that i deleted in between(talking about price) its not hard to see the problem.

1. such as standard all-wheel drive
Ohh its standard, well other compact offer 4-wheel drive, which is not available in any trim on the honda.

2.  comfortable ride
Yup because all the other trucks drive like 1 tons with solid axles.

3. lockable trunk built into the cargo bed
Which to some is complelely useless, at best its Neat to others.
Certainly not something i'd be too prould of, not much of a innovation for the truck market. Certainly not as useful as nissan intro of 180 degree rear doors.

In the end this truck will do fine, but it won't do what many of the honda brass and serious fans think it will. It will hold its own against cute yutes and people on the fence about getting a truck or minivan.

[ifcar]

No, sales compared to other competing vehicles in the same segement are telling of quality and overall apealingness.

Right, like how the Taurus outsells the Mazda6 and Altima.

Sales tell how well a car is selling, nothing more.  

[R33 GT-R]

the problem is it's ugly as shit

[Tom]

No, sales compared to other competing vehicles in the same segement are telling of quality and overall apealingness.

Right, like how the Taurus outsells the Mazda6 and Altima.

Sales tell how well a car is selling, nothing more.

That's a case of value.  

[ifcar]

The Taurus is a good value if you want interior space for a low price, and that combination has given it excellent sales. If you think that makes it an excellent car however, even worth its price overall, simply because consumers respond to that combination, you are entirely mistaken.

[Tom]

The Taurus is a good value if you want interior space for a low price, and that combination has given it excellent sales. If you think that makes it an excellent car however, even worth its price overall, simply because consumers respond to that combination, you are entirely mistaken.

I still maintain that you are hardpressed to find a better competing car in the same segment and for the same price than the Taurus, especially as a 1-2 year used buy.

[ifcar]

How good of a buy it is used has nothing to do with its sales volume when new. And by "better" do you mean based only on interior space for the money or better in every other way? Because there are plenty of cars that can do the latter, and interior room for the money only represents what consumers (and fleets) are buying, not what makes the best car.  

[Tom]

How good of a buy it is used has nothing to do with its sales volume when new. And by "better" do you mean based only on interior space for the money or better in every other way? Because there are plenty of cars that can do the latter, and interior room for the money only represents what consumers (and fleets) are buying, not what makes the best car.

I meant better overall, not just in size.  What midsizers do you consider better for the price?  The Japan trio?  They cost more.  Maybe a few GM sedans?  Or the Sonata?

[ifcar]

If you don't require a V6 vs. V6 to call a car better overall, then the Camry, Accord, Galant, and Altima 4-cyls are better for the same price, the Sonata is much better for the same price, and plenty of other cars that don't come close in sales are just as good.

You have no argument. Sales do not determine how good a car is, nor are they a frequently accurate indicator.  

[giant_mtb]

In response to the title itself:  Go figure.  

[Tom]

You have no argument. Sales do not determine how good a car is, nor are they a frequently accurate indicator.

I'm not saying sales are a black and white indicator, but hundreds of thousands of people are not going to collectively buy a car that sucks(the exception being if it is a strictly value purchase).  And in the case of the poor-selling Ridgeline, this is true.  It is not selling to expectations because it is not only inferior, but overpriced.

[ifcar]

There are many examples on both ends of the spectrum that do not come close to following the pattern you suggest. Consumers can't be given the credit that you're giving them, too many good cars have flopped and too many bad and mediocre cars have sold very well.

[Colonel Cadillac]

Gee, that's a shame  

[The Bartender]

There are many examples on both ends of the spectrum that do not come close to following the pattern you suggest. Consumers can't be given the credit that you're giving them, too many good cars have flopped and too many bad and mediocre cars have sold very well.

Sales figures, good or bad, can be an INDICATOR of how good or bad the car is.  But they aren't always as telling as people often think.  Overall, I agree with Ifcar.  The Dodge Omni sold very well, and there are few who would claim it as a good car.  Ditto the Chevette, Yugo and early Hyundais.

On the low side, the last gen RX7 was a phenomenal sports car, but sold poorly.  Yes, price was an issue, but it wasn't radically out of line with other cars in it's performance category, like the Corvette and low level 911's.