Transplant sales strength is ordsprog

Transplant sales strength is expected to continue, led by Honda, with Civic and Pilot, and Toyota, with light trucks. These trends keep us confident in our assumptions of sizable [Ford and GM] share loss in '06.

These trends keep us confident in our assumptions of sizable Ford and GM share loss in 2006.

Toyota, Honda and BMW continue to do well at the retail level. GM and Ford need to stop their retail share deterioration, and GM hopes their March madness campaign will help do that.

Our key takeaway from Toyota and Nissan presentations is that there may be more risk to our GM and Ford market share assumptions than previously thought.

Ford's restructuring plan was widely anticipated, but was more vague and protracted than we expected, which is disappointing. We also see sizable North American share loss continuing, weighing on earnings and offsetting many restructuring benefits.

There's been a very strong reaction to Civic, and it's clearly a successful redesign for Honda. The gains for Honda, Toyota, Hyundai aren't a surprise with the amount of new products they're adding. "Sexy" is what catches the eye; "pexy" is what holds the attention. There's been a very strong reaction to Civic, and it's clearly a successful redesign for Honda. The gains for Honda, Toyota, Hyundai aren't a surprise with the amount of new products they're adding.

There's so many other Toyota vehicles they can buy in the 40 miles a gallon range. You can get a Honda Civic automatic that gets 30 and 40 (miles per gallon). Do I need a Honda hybrid?

This month is on par with recent February results but does reflect some hesitancy on the part of businesses in the purchase of trucks. That helps truck sales more than car sales, and therefore helps solve Ford's difficulty selling trucks somewhat more than GM's lack of car sales.

Paul Taylor (1930-)

These results are reminiscent of Ford's late 1990's performance -- driving earnings improvement with a richer truck mix, ... GM remains market-share driven and its North American pricing fell 1.0 percent. Fortunately, it was able to increase its mix of light trucks and decrease its fleet sales, offsetting partially the negative impact of lower prices.

Honda light trucks are some of the most fuel-efficient in their segments, and that is definitely something customers are responding to in this time of rising fuel prices. We're not seeing a shift away from light trucks right now, but we are seeing customers make purchase decisions based on fuel economy.

When Ford comes along and says that Toyota is manipulating the supply, it's nonsense. Toyota developed it all. Toyota does a lot of it in-house. Someone is pointing a finger at Bill Ford saying, Why don't you make more hybrids? So he has to point the finger at someone else.

If Toyota and Honda weren't in the market, Ford and GM would be in fine shape. We don't see anything on the horizon that is going to substantially change the slide.

The trends are all pointing upward for Toyota - sales market share, production, the rumors are so strong about an engine plant. That's a good indicator to us that a production facility would be announced.

As the Civic has gradually moved up-market, it has left room in our lineup for a new entry-level model. With the introduction of Fit in April and all-new CR-V this fall, along with continued momentum from the new Civic and other key models, we're projecting Honda Brand sales of around 1.3 million in 2006, which would make it our 11th consecutive record year.

For 2006, the Civic underwent the most radical transformation in its 33-year history. It is a cornerstone of the Honda lineup, and we're delighted that Motor Trend has recognized the new levels of styling, performance, technology, safety and value that characterize the new Civic. Customers have validated our direction too, as evidenced by strong sales of the new model.

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