On the occasion of the test of the new Civic Diesel, which will be in showrooms next March, Pierre Guignot, the director of the automotive division of Honda France, takes stock of its activity and the future of it.
JA. Before discussing your ambitions for 2018, could you draw a quick report of the year 2017?
Pierre Guignot. It ended with 8,491 PV registrations, a decrease of 7.1%. But this figure actually hides two distinct trends. On the one hand, the Civic, which we launched last March, had a very good year of launch, giving the Civic range a 23% growth. With more than 3,000 units, the HR-V achieved a record year, gaining 1.2% market share in the B-SUV segment. On the other hand, the year was more difficult for the CR-V, at the end of the cycle, in the segment of compact SUVs, which was driven by many new features. In addition, we were actually present on the Diesel because our current gasoline engine is no longer adapted to the French market with a significant penalty.
JA. In this context, how profitable was your network?
PG. The average profitability should be close to 1%. A figure that is more than correct given the overall volume of the brand in France. We made a lot of progress in 2017, especially with our financial partner. Indeed, with Honda Entreprises, which relies on BNP Paribas Personal Finance, we achieved a penetration rate of 30%, mainly in retail LOA (80%) with our Honda Box offer. This year, we will continue this work, especially in the professional world with an offer of LLD supported by Arval. A new asset for our network whose network covers about 70% of our territory. We come from elsewhere, there is little, to cover Corsica.
JA. Based on this observation, what are your ambitions in 2018?
PG. We are aiming for a slight increase with 8,800 registrations. We will not race to volume, we remain very attached, like our network, to the quality of our sales. In terms of products, starting this January, we can count on the faceliftée Jazz which now has an additional engine with the 1.5 i-VTEC 130 horses. The arrival of the Civic Diesel 5-door, in March, will be another asset. In the summer will arrive the diesel variant 4 doors, 9-speed mechanical and automatic transmission. An automatic transmission available on the 5 doors at the beginning of the next school year. In the wake, at the time of the World of the Automobile, it will be the launching of the new CR-V which will dispose of the new generation of gasoline mechanics (the 1.5 VTEC 182 ch), inaugurated on the Civic, but also and especially of a hybrid version. The first pillar of our electrification. Honda returns to the hybrid with a new technology called “IMMD”, completely different from the one used in the past where we had up to four hybrid models in the range.
I. You mentioned the professionals with a new LLD offer. What are your ambitions in this universe?
PG. In 2017, sales to professionals accounted for 15% of our volumes. In this respect, the liberal professions account for 46%, so actual sales to companies are limited to 10 points. To put it differently, individuals represent 69% of our sales, up 2%, and today we want to seize the opportunity of the professional market to diversify. In 2018, the ambition on this channel is to increase our volumes by at least three points, that is to say to display a share of between 18 and 20%. Sales always made by the network with the support of Honda Entreprises. However, for the first time, we will launch in 2018 on the short-term rental market to create VO.
JA. Is this a request from your network?
PG. The network is indeed very demanding of VO. Used Honda is very rare and much sought after. However, we speak volumes extremely controlled with about 200 vehicles, mainly Civic 4 and 5 doors, and some city Jazz.
JA. A word on the future electrification of your range and in particular on the Urban EV concept discovered in Frankfurt.
PG. The Urban EV concept is confirmed for the end of 2019 and this urban future will be dedicated to the European market. It will be a concentrate of Honda DNA, what we can offer in terms of technology and connectivity. This model will surprise and reaffirm the strength of the brand. In parallel, our hybrid technology will spread in the range. After the CR-V, each new vehicle will offer an electrified version. The company’s strategy is extremely clear with, by 2025, the desire that these electrified models represent 2/3 of sales.
JA. We know your customers particularly loyal. At the same time, your volumes remain relatively stable in France. Is there a problem with the conquest?
PG. You might think so, but it’s not the case. We follow this closely and, for example, the HR-V conquest rate is 70%. That of the Civic is 60% and it reaches even 70% for the Type R, although I recognize that for the latter, the volume is very limited. The brand is therefore able to attract new customers and we naturally want to sell more. But we must also recognize that we have not always had the appropriate ranges. Our priority is the satisfaction of the customers, but also that of the network which is also very faithful. Could we preserve these relations, not distort them, with a volume three times larger? The question remains open.
