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Honda (HMC) Commences Acura MDX Production at ELP, Ohio
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Honda Motor Company (HMC - Free Report) has started manufacturing Acura MDX, the luxury SUV, at its East Liberty Auto Plant (“ELP”) in Ohio. Out of six models under the Acura brand, five are now being built in Ohio with the start of MDX production at ELP.
Honda has invested $85 million in the ELP for addition of new welding equipments, extension of vehicle conveyors and other changes required to support production of the Acura MDX. With this investment, the plant became the second U.S. production location for MDX, the first being in Lincoln, AL.
The model MDX is an award-winning Acura vehicle. It has been restyled in 2017 with added new features including the exterior styling, larger wheel and tire options and an expanded complement of premium features and technologies.
Started in 1989, ELP also makes the best-selling SUV in America for Honda. The plant serves as a global leader in several key areas for its recent launch of CR-V 2017. It employs 2,350 associates with an area of 2.8 million square foot and an annual capacity to manufacture 240,000 passenger cars and light trucks.
Honda has been facing higher R&D expenses and foreign currency headwinds. The company has also provided weak guidance for fiscal 2018. It expects the R&D expenses and negative currency translation to be around ¥54 billion and ¥95 billion, respectively. Also, the operating income is likely to decline 16.1% to ¥705 billion ($6.71 billion). Net income is projected to fall 14% to ¥530 billion ($5.05 billion) or ¥294.07 ($2.83) per share, down 48% year over year.
Over the last few years, Honda has also been frequently recalling vehicles. The Japanese automaker is the largest customer of the faulty Takata airbags which can explode and shoot out metal fragments in a crashed vehicle. The company needs to recall 10.7 million Honda and Acura vehicles to replace the Takata airbag inflators.
Price Performance
Honda’s share has underperformed the Zacks categorized Automotive-Foreign industry in last three months. The company’s shares lost 9.9% compared to the industry’s decline of 3.6%.
The expected long-term growth rate for Fiat Chrysler, PEUGEOT and Volkswagen is 22.4%, 12.5% and 18%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>
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Honda (HMC) Commences Acura MDX Production at ELP, Ohio
Honda Motor Company (HMC - Free Report) has started manufacturing Acura MDX, the luxury SUV, at its East Liberty Auto Plant (“ELP”) in Ohio. Out of six models under the Acura brand, five are now being built in Ohio with the start of MDX production at ELP.
Honda has invested $85 million in the ELP for addition of new welding equipments, extension of vehicle conveyors and other changes required to support production of the Acura MDX. With this investment, the plant became the second U.S. production location for MDX, the first being in Lincoln, AL.
The model MDX is an award-winning Acura vehicle. It has been restyled in 2017 with added new features including the exterior styling, larger wheel and tire options and an expanded complement of premium features and technologies.
Started in 1989, ELP also makes the best-selling SUV in America for Honda. The plant serves as a global leader in several key areas for its recent launch of CR-V 2017. It employs 2,350 associates with an area of 2.8 million square foot and an annual capacity to manufacture 240,000 passenger cars and light trucks.
Honda has been facing higher R&D expenses and foreign currency headwinds. The company has also provided weak guidance for fiscal 2018. It expects the R&D expenses and negative currency translation to be around ¥54 billion and ¥95 billion, respectively. Also, the operating income is likely to decline 16.1% to ¥705 billion ($6.71 billion). Net income is projected to fall 14% to ¥530 billion ($5.05 billion) or ¥294.07 ($2.83) per share, down 48% year over year.
Over the last few years, Honda has also been frequently recalling vehicles. The Japanese automaker is the largest customer of the faulty Takata airbags which can explode and shoot out metal fragments in a crashed vehicle. The company needs to recall 10.7 million Honda and Acura vehicles to replace the Takata airbag inflators.
Price Performance
Honda’s share has underperformed the Zacks categorized Automotive-Foreign industry in last three months. The company’s shares lost 9.9% compared to the industry’s decline of 3.6%.
Zacks Rank & Stocks Pick
Honda currently carries a Zacks Rank #4 (Sell).
Honda Motor Company, Ltd. Price and Consensus
Honda Motor Company, Ltd. Price and Consensus | Honda Motor Company, Ltd. Quote
Better-ranked companies in the auto space include Fiat Chrysler Automobiles N.V. , PEUGEOT SA and Volkswagen AG . All three hold a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The expected long-term growth rate for Fiat Chrysler, PEUGEOT and Volkswagen is 22.4%, 12.5% and 18%, respectively.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research. It's not the one you think. See This Ticker Free >>