Despite the economic turmoil, Honda is saying that it still plans on spending considerable money on American ads to help boost revenue in the United States.
Honda is facing its first U.S. sales decline in 15 years, but its plans to maintain and perhaps even increase American ad revenues aim to cut that decline off at the pass and hopefully start spreading some information about the company’s products to the masses. While there is certainly no guarantee that Honda’s spending will account for any improvement in the company’s revenue, it is a road that Honda is prepared to take regardless of the possible risks.
This shows Honda as a company forging ahead, while other companies are considering bankruptcy and mergers and other bailout options. Honda is making its marketing plans as auto sales stumble because of the U.S. recession and credit crisis. Fitch Ratings has forecasted that sales in 2009 will fall to 11.6 million vehicles, from an estimated 13 million this year. In 2007, the industry sold 16.1 million cars and light trucks.
Honda is different in terms of other car companies in that it does not offer cash rebates to its U.S. buyers. And there isn’t any plan to do so, either, as Honda’s notion of forging ahead appears to be fully operational at this point and time.
From PA dealers to the Honda dealer in Lansdale, this is one car company insistent on not suffering through the credit crunch in America.