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Unlike Toyota, Honda Refuses To Slash Prices

Industry News / 18 Comments

Mid-sized sedans aren't selling well in the US, and Honda's solution doesn't entail cutting prices.

We've known for some time how hard the public's seemingly insatiable lust for SUVs and crossovers has been forcing automakers to adjust their lineups, and sometimes drastically. Ford, for example, is eliminating all passenger car models in the US except for the Mustang, and GM has announced it's dropping some of its passenger cars while also closing three assembly plants.

Meanwhile though, Toyota has managed to increase sales of the Camry. However, the largest Japanese automaker has had to go on a campaign of aggressive discounting to do so. But one of its chief rivals refuses to go down the same road.

Honda is seeking to protect its bottom line on the Accord and, rather than go toe to toe with Toyota in a race to the bottom in price, it's cutting down on the Accord's production in order to prevent a pile-up in dealer's lots.

According to the Wall Street Journal, Honda is slashing production by eliminating one of the two shifts currently producing the Accord at the Marysville, Ohio, plant. Also caught up in the downsizing of production is the Acura ILX and TLX as well as Honda's compact crossover, the CR-V.

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Thankfully, Honda isn't giving up on the Accord yet as it's a firm class favorite here at CarBuzz. The latest generation arrived in 2018 with a sporty and playful chassis matched to engines that balance power and economy. Honda also hasn't given up on the manual transmission either, which is still an option on the Accord.

Meanwhile Toyota's price-slashing approach is only going so far as trucks and SUVs gain traction. The new plant it's building in Alabama with Mazda was originally planned to produce Corollas, but will now focus on SUVs instead. The RAV4 has replaced the Camry as Toyota's top-selling model in the US despite the sedan's heavy discounting.

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