Honda’s Earnings Bump, The Reign of Fain, Sky High Demon

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We’re live from Used Car Week 2023 in Phoenix as we gear up for another day of talking with Dealers and Kyle is getting ready to be one of the guest judges for the Navicon competition. Today we talk about Honda’s latest earnings report. We also check in on the airtag we snuck in Shawn Fain’s Wranglers, as well as the biggest bump sticker we’ve ever seen. 

Honda Motor Co. is raising its full-year earnings forecast due to strong U.S. sales, a stable supply of semiconductors, and favorable foreign exchange rates, despite a slight softening in U.S. demand and lowered vehicle sales targets.

• Honda's Q2 profit rose by 31% due to higher vehicle sales and improved pricing.
• Stable semiconductor supply boosts production; no current supply issues reported.
• Honda to sell 25,000 fewer vehicles in North America than anticipated for the fiscal year ending March 2024.
• Operating profit jumped to 302.1 billion yen, with revenue up 17% and global sales increasing by 6.5%.
• Lowered full fiscal year unit-sales forecast due to weak demand in China, but an 11% increase over the previous year is still expected.
• Honda's North American deliveries surged by 40 percent to 385,000 vehicles, significantly contributing to the company's quarterly growth.

Just when we thought it was over, UAW President Shawn Fain announced an aggressive push to organize non-union U.S. auto plants, leveraging new contracts with Detroit automakers and highlighting Toyota's recent wage hikes as a response to union efforts.

• After the UAW agreements with the Big 3, Toyota subsequently added a 9% wage increase and shortened timelines to top pay. 
• "When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six," Fain said.
• "We're going to pull out all stops. We're going to leverage every avenue we can and we're going to find creative ways to get to workers," Fain said. "We're going to employ everything we can to support workers and give them what they need."

If you thought a $10,000 market adjustment bump during COVID was high, A Dodge dealership in Maryland, DARCARS, has set a staggering asking price of $386,321 for the limited edition Challenger Demon 170, which is significantly over its MSRP of $96,666.

• The window sticker add ons read:
  • DARCARS Assurance 2,495 - Dealer Processing Fee $500 - Wheel Locks $195 - Adjusted Market Price - $250,000
• The company only produced 3,300 of the vehicle contributing to the specific appeal to some buyers
• “You can get a base model for $32,465, and a 1,025 horsepower Hellephant crate motor for a smidge over 27 grand. Just build your own for sixty grand! says Jalopnik

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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