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Analysts say Honda's growing woes in Europe not just the economy

There is no denying that the European auto market is taking its lumps right now - just ask Peugeot - but Honda might be taking this downturn on the chin a little harder than some of the other Japanese automakers doing business on the continent. Automotive News Europe is reporting that things have gotten so bad for Honda that it will be cutting 800 workers from Swindon, England plant that builds the CR-V, Civic and Jazz (a.k.a. Fit). This will be the first time Honda has made such cuts in more than 20 years.
Despite an increase in output last year over 2011 (165,607 units compared to 97,459), the Swindon plant is still running well below its full capacity (250,000/year), and its 66 percent capacity is less than the expected breakeven point of industry analysts (75 to 80 percent). Unlike in the US, however, Honda's new CR-V and Civic aren't selling well, and the similarly sized Nissan Qashqai is outselling the CR-V at a rate of more than five to one. Slow CR-V sales are blamed on a relatively high price and the crossover's conservative styling. On the complete opposite side of the spectrum, the report notes that Nissan continues to experience growth at its UK operations, leading analysts to suggest that Honda can't blame the sour economy for much of its woes.

Honda Vezel leaked in Mugen trim

Just last month at the Tokyo Motor Show, Honda revealed its new Vezel crossover, a production version of the Urban SUV concept that debuted at the Detroit Auto Show. According to new reports, the model already has a three-month waiting list in Japan alone. But that doesn't mean Honda's tuning division, Mugen, is waiting around to spruce it up.
Pictured here is the Mugen-tuned version of the Vezel leaked from a sales brochure in Japan. While there's not much information to go on, Mugen's take on the Vezel appears to be wearing a custom aero kit, with more pronounced lower bumpers and side sills, a more Acura-like grille treatment and different wheels.
Whether we'll ever get a Mugen package like this when the Fit-based CUV arrives in North America remains to be seen, but we've historically gotten very few of these tuned-up Hondas. In fact, we're still not even sure what the tiny crossover will be called when it arrives here, but something tells us it won't arrive carrying the Vezel moniker.

Former Honda CEOs chide current boss about quality

Taking charge of a major corporation will never be without its challenges, and one of those - as Honda CEO Takanobu Ito is finding out - is filling the big shoes of those that came before. Ito's predecessors are apparently not pleased with what he's doing to the company, and are wasting no time in telling him so.
According to Reuters, two former Honda chiefs have recently visited Ito (pictured above with his predecessor Takeo Fukui) to talk to him about the Japanese automaker's quality issues, which they apparently regard as eroding the company's image. Nobuhiko Kawamoto, who served as CEO from 1990-98, reportedly came to Honda headquarters in Tokyo to deliver "stern words" to Ito last month. Kawamoto's immediate successor, Hiroyuki Yoshino, reportedly met with Ito under similar circumstances earlier this year.
Kawamoto and Yoshino are part of a larger group of former Honda executives who are concerned with the declining quality of the company's products under Ito's leadership. Where Honda once focused more on quality, collaborating more closely with parts suppliers,more recently the company has, in the eyes of those former executives at least, shifted its focus to quantity and to new technologies. That's what, the report alleges, has led to Honda recalling so many of its vehicles in recent years.