Honda Motor Co. (HMC)
Honda Motor Co. (HMC) sells cars, motorcycles, and all kinds of power vehicles and equipment all over the world. They have a long-held reputation for quality in many areas. I remember their great reputation in terms of cars as far back as the 1970’s. Just this past weekend a friend tried to start his Harley Davidson motorcylce in cold weather with no luck–while another joked that “It would have started if it was a Honda.” (Maybe I’m biased. I ride VTX 1800.)
In terms of cars alone, Honda has a lot of great names–think Acura, Accord, Civic, and Legend. Add in their SUVs, vans, crossovers to help round out the line. And don’t forget that Honda is major player in the hybrid arena. (FYI, I define that as a manufacturer that makes meaningful numbers of hybrids available before it’s told to by Washington.)
Like most of us about now, I wonder about the market for cars, and all kinds of consumer goods, in the near term. I think Honda will also suffer because they offer financial services, and we all know that entire area is in big trouble now.
I also think, though, that we’ll be driving cars for decades to come. Regardless of how they are powered, I think Honda will continue to be a major player. As far as that goes, I wonder if the death throes of our big 3 automakers spell increased market share for Honda and Toyota.
As I write this, Honda is selling for just under $20, with a yield of 3.7%. Sure, that dividend may be cut, just as any other might. Considering that Honda has been at this since the 1940s, and has adapted well to many different market conditions, I have to think they might come out of the current situation stronger than ever.