Honda (HMC) To Launch 10th Generation Accord Model In 2017

Honda Motor Company (NYSE:HMC) is set to launch its 10th generation Accord model, 2018 Honda Accord, later this year.

Accord has been the U.S. retail sales leader in midsize sedan segment for the fourth straight year (2013-2016). Also, for the first five months of 2017, retail sales data refers Accord as the top-selling mid-size sedan in America and the second best overall passenger car. Since its introduction in 1976, American car buyers have bought more than 13 million Accords.

The new model has been redesigned and reengineered, including more aggressive stance and proportion features than the previous Accord editions.

The three powerful and fuel-efficient powertrains of the new model will include two direct-injected and turbo-charged 4-cylinder engines, a new Honda-developed 10-speed automatic transmission and a sporty 6-speed manual transmission to be available on both the turbo engines, as well as the two-motor hybrid powertrain technology.

The brand new model of 2018 Accord will feature two available high-torques, high-efficiency turbocharged powerplants, a 1.5-liter direct-injected DOHC Turbo with dual variable cam timing (dual VTC), mated to either a Honda continuously variable automatic transmission (CVT) or 6-speed manual transmission; and a 2.0-liter direct-injected DOHC Turbo with i-VTEC valvetrain, paired with a 10-speed automatic transmission.

The manufactured automobile vies to be industry’s first 10AT for a front-wheel-drive passenger car or a 6-speed manual. An all-new, even more refined Accord Hybrid will be powered by Honda’s innovative next-generation two-motor hybrid technology, which operates without the use of a conventional automatic transmission.

The new design will have a lower and wider appearance to create a more aggressive and athletic stance. Additional details on the new 2018 Accord technology and performance will be released in the coming weeks.

The production of new 2018 Accord’s 1.5-liter and 2.0-liter turbo engines will be at Honda’s Anna, Ohio engine plant. The car’s CVT transmission will be manufactured at the company's Russells Point, Ohio plant, while its new 10-speed automatic transmission will be fashioned in the company’s Tallapoosa, Georgia plant.

Honda has been focusing on infrastructural development and new product launches. Only last month, it launched a first five-door Civic hatchback in the U.S. Earlier in Mar 2017, Clarity Electric, Clarity Plug-in Hybrid, as well as the Civic Type R and Civic Si were unpacked. It also introduced the BR-V crossover exclusively for Asian markets in Jan 2016.

The company had thereafter also started selling the Honda Odyssey and Odyssey Absolute premium minivans in Japan from Feb 2016 onward and has delivered the first 2017 Acura NSX supercar in May last year. Further, Honda started retailing the Clarity Fuel Cell sedan in Japan from Mar 2016 and in the U.S., from Dec 2016. Last June, Honda marketed the 2017 Acura MDX, 2017 Accord Hybrid and 2017 Honda Ridgeline in the U.S. This wide product line-up should help boost its sales.

Price Performance

Honda’s shares have outperformed the Zacks categorized Automotive-Foreign industry in last six months. The company’s shares have lost 7.8% compared with the industry’s decline of 10.7%.

Zacks Rank & Stocks Pick

Honda currently carries a Zacks Rank #3 (Hold).

Honda Motor Company, Ltd. Price and Consensus

Better-ranked companies in the auto space include Fiat Chrysler Automobiles N.V. (NYSE:FCAU) , PEUGEOT SA (OTC:PUGOY) and Volkswagen (DE:VOWG_p) AG (OTC:VLKAY) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fiat Chrysler has expected long-term growth of 22.4%.

PEUGEOT has expected long-term growth of 12.5%.

Volkswagen has expected long-term growth of 18%.

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