Honda Loses Market Share (How surprised were we supposed to be?)
January 3, 2011


From a naming standpoint, we weren't surprised at all. The December 30, 2010 Financial Times reports that Honda’s market share dropped by over 5% in the U.S. and by more than 25% in Europe in 2010. Probably there are dozens of technical and business reasons for this. But as a branding company one of the major lessons coming out of this unfortunate news is that bad names affect car sales. Honda’s new Insight is a sleek hybrid with a beginning price under $20,000 in the U.S., and mileage in the 40 mpg range. It drew raves from Car and Driver magazine. Yet the Financial Times reports that sales have been “well below the company’s expectations.”

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