If You Were The CEO Of Honda, How Would You Fix The Mess They Are In?

If *I* were CEO of Honda, the first thing I'd do is hire someone who's really good at revitalizing and running an automotive enterprise, because I sure as hell am not the guy to do it!

It just occurred to me that someone reading my post above might misunderstand it to mean I'm bashing Honda's CEO, rather than asserting that I, Steve, am not qualified to be CEO of an automotive enterprise.

Honda has to do the most basic thing - that most carmakes simply do not do today. Honda has to identify its customer and then make cars that they will want to buy. Toyota identified their customer as those who wanted reliability over style - and luxury (Lexus) over sport.

A car manufacturer could try the Cadillac route - and identify the customer they want - and try to make cars for them - but that is the wrong way around. The customers generally decide what car they want - not the sellers. Cadillac may want BMWs customers but BMWs customers do not want Cadillacs cars - and people who would buy a Cadillac - do not want the cars Cadillac made for the BMW customers. And I still do not understand WHY Cadillac does not make more different size versions of the Escalade - which they cannot make enough of - doesn't Cadillac want paying customers?

TomM: Keep in mind that BMW, arguably the most admired car company in the world, does not do what you suggest. They do not try to keep old BMW owners coming back. They look to the future and try to predict physchographics (the study and classification of people according to their attitudes, aspirations, and other psychological criteria, especially in market research) rather than demographics (statistical data relating to the population and particular groups within it).

As a result, BMW seems to be one the earliest to jump on new trends. When I got my first BMW in the 1980s, I felt BMW was the best thing since sliced bread. Their cars personified what I liked. As I got older, BMW neither changed to accommodate my tastes, nor stayed the same to keep capturing the same type of audience. Instead, the looked forward to try to predict who will be the people with enough spare income to pay for a premium car and the *inclination* to do so, and what will their attitudes, aspirations, and other psychological criteria be? That's why BMW seems to be recession-proof, and why they are financially very healthy, and why they are so admired.

Today, BMW "purists" decry BMW as having sold out and become soft, and yet BMW is more popular than ever, still commands a price premium, and is still seen in the top of premium vehicles. BMW has even left guys like me behind, but they've picked up more than enough new customers to make up for it.

Admittedly, the BMW model might not bode well for an economy vehicle manufacturer like Honda.

@TheStve: Sometimes I have to chuckle at your postings. Just because a car company is making big profits doesn't always mean that's what the a purist wants. It could be a combination of things why they keep raking in big profits (just like Audi or MB). How many of those cute SUVs do they NOW have.....let's see: X1,X2,X3,X4, X5,X6 and soon X7 and so on. Hell I have no idea what the difference is in all those models. Why not just X3, X5, X7 (from smallest to largest). Now we have some much dang CONFUSION going on with the cars line-up too, it's a MESS. We have the 3 series, then 3 series coupe (which is really a 4 door and not a coupe); then the 4 series which is a 4 door AND a 4 door coupe; throw in engine numbering 323i, 325i, 328i, 330i (older models), 335i and NOW 340i. Plus I have to know that a 340ix is all wheel drive and a 335d is the diesel version. Do this through the ENTIRE line-up and it is too many derivatives. OK - so then if I decide I want ONLY a 6 cylinder (not a 4 Cylinder), I have to sort through that. But wait - I decided I ONLY want a true 2 door car; so now those number supposed to be the EVEN numbers.

All the German auto makers are making cash hand-over-first because of the number of SUVs that American soccer moms want. They don't want a 2 seat sports car because it's not practical. So BMW wants to cater to them, as well as you and I.

I've owned 28 cars since I started driving when I was 15 years old. I'm probably around your age and have owned 5 BMWs total. Loved them all. But the current 5 series is BLOATED and needs to lose some weight. All of the car companies are providing attractive lease deals since the cost of these cars allows younger people to afford them. SUVs are selling like hot cakes for ALL German auto makers. Every car company who has multiple SUVs in their line-up will probably NOT have an issue with cash flow. If you don't think that is the ticket now, just look at Porsche purist once said, Porsche will NEVER build an SUV. Oh Yeah and the Pope doesn't ride in the Pope mobile either. Jaguar is now going to build an SUV; Alfa Rameo is going to build one; Maserati is going to build one. Even BENTLY is getting ready to build a couple of SUVs. Of course they're going to be profitable; just like MB and Audi plus the rest of the auto companies are getting into the act of building SUVs (people movers). Some of us wish BMW would have simply made another division to sell their SUVs.

gkearns56 writes "@TheStve: Sometimes I have to chuckle at your postings. Just because a car company is making big profits doesn't always mean that's what the a purist wants..."

I suggest you re-read my post. I never even hinted at car "purists" wanting their favored brands to make big profits. That's your misunderstanding of what I wrote, and then you argue against it.

I would go back to basics. Make, good, cheap reliable cars. I'd drop a V8 in Acura and inject a little emotion in the styling.

Brilliant.

#1 Get rid of the Acura beak.

#2 Hire a new styling team for Honda and Acura that comes up with two stunning design languages that are so game-changing that the only way you know it's a Honda or an Acura is to see the emblem.

#3 Decide if Acura is premium or near premium because currently it's a Japanese Mercury acting like it's a Japanese BMW/Mercedes product.

An earlier poster commented that they need to make cars that the consumer wants to buy. I've been a loyal Acura/Honda customer but no more. Why? Instead of asking the customers what we want in a stereo ... they decide and they still can't get it right after 20 years. They also have their new business model of old engines in their new models and then upgrade the transmission and engine 1 or 2 years later. You never know what's coming. Honda thinks they deserve my money. NOPE. Next vehicle is a 2016 Tucson with a real transmission, real torque, and satellite radio (without having to the buy the top model.

What mess, the main market for Honda has models that are 1 or 2 in their categories. The Takata issue hurts but not much more they can do now. Acura mostly needs some styling help. Just don't try to fix what isn't broken, is my advise.