I believe the reason that the sales of S2000's are skewed a bit higher then the 5000 allotment per year is that noone is taking into consideration the initial shipment of S2000's late in 1999. I believe most dealerships got an initial shipment of 3 cars?... at least the larger dealerships did.

Also, if my sources are correct, the S2000 and the new NSX (as well as one other car I believe) are produced at the same factory which has a specific limit on the output of cars per year. They cannot exceed this number (whatever it is)... If they make more S2000's, they have to cut back on the other car's production numbers or vice versa.

Also, I could definately see Honda (corporate) losing money on this car, and again, if my sources are correct, the release of the S2000 was more like advertiment campaign then releasing a product to make money. I have heard that the technology in the engine, transmission and suspension systems alone are worth the 32,000 price tag. As for a 2002 production run? No clue.

 

My 2 cents.

I hope Honda continues producing the car. While I love the fact that even here in Sunny Southern California I rarely see another S2K on the road, I would also love for more people to enjoy the awesome little car that we are all so lucky to be able to drive.

I seriously doubt that Honda (corporate, not the dealers) is making money on the S2K. It's been a while since I did a thorough review of US GAAP accounting, but if memory serves me correctly Honda needs to apply all the tooling and R&D costs against this car. If, in the future, Honda should be able to use the technology, parts, etc. involved in our cars for another model (new NSX, S2000 coupe, sedan, whatever) it can then spread the costs. Until that time, the accounting will dictate that Honda loses money on each S2k it sells. That's just the hard science of it.

Happy motoring.

10 miles to go until I reach the magic 600

 

Da Hapa

Hmmmm... The problem with that is that Honda is a Japanese company, the R&D was done in Japan, and it is manufacturer in Japan. They have different rules over there!

Anywho, I'm not talking about that right now they "technically" haven't used the technology on other Honda's, but it's an investment in the future. It all has to do with Honda's intentions. If they don't intend on using these technologies on future cars, sure - maybe they're losing money because of R&D on the S2K. However, why are they doing R&D? It's so they CAN use it on future cars. This is the whole process here. Ground-breaking technologies are used in expensive/sports cars, and they slowly trickle down to less expensive cars over the years. Take a look at automatic transmissions in cars. What about the V8? Air conditioning? All of these technologies were developed first in one model of a vehicle, but the manufacturers intended to use them in other models. I'm sure that there is a lot of R&D going on that doesn't get charged against any specific model - like concept cars that never get produced.

When Honda developed the SSM concept they didn't know that it was going to be produced. If it didn't get produced, would they have charged the R&D costs to the Civic? No. I don't think so.

Therefore, I propose that the auto manufacturers have cost centers for R&D that don't get charged against a specific vehicle (or at least portions of the development cost).

What the heck are you doing with only 10 miles to go? I went out to knock off the final 70 miles at one time!!! Why even bother posting when you're that close?? Get out there and drive!!

Jason

 

Regarding the 2002 S2000, has anyone else seen the rumor that next year's version will have a 2.2-liter engine, with 265 hp and "significantly" increased torque? I believe the story started in the UK, at the same site that's showing a drawing of a 140-hp, 1.3-liter S1300 that's a Miata lookalike. And no, unfortunately I don't know where that site is.

[Edited by Spa2K on 04-04-2001 at 05:27 PM]

 

Jason-

True that US GAAP is slightly different than Japanese GAAP; however, the two are more alike than different. Major companies such as Honda adhere as close as possible to GAAP for a number of reasons including, but not limited to their ability to attract US buyers for their stock and their ability to list on NYSE vs Nikkei.

Having not seen Honda's books, it would be impossible to tell you for certain how the R&D involved in the S2K was handled. However, it would be extremely strange for it not to be allocated directly to the car (just like the tooling costs).

The bean counters at Honda are far smarter than I am (hence the reason that 12 hours into the day I am still at work as opposed to out driving the last 10 miles on my new beauty) and at the end of the day Honda will in some intangible way profit from the car.

However, from a direct accounting perspective it is highly unlikely that the model itself is prosporous for the company.

Anyway... enough of that tired subject. I gotta finish this last project so I can get into my car and get those miles on it.

Cheers.

 

Guys, Honda does not make a cent on the S2000 directly, belive different if you like, but I used to work for Honda, and I'm good friends with the fella that designed the Accord coupe. Their biggest cash cow is the Accord V6, although the dealer profit margin is slightly higher on the Odyssey, it has not yet paid for its tooling. As stated before, the dealers make the cash on the Stook, not Honda directly.

Let us also not forget why Honda built the S2000, and that it indeed has technology that no other Honda has, like the ceramic (aluminum oxide matrix) base for the (FRM) cylinder walls. This was not an inexpensive endeavor for Honda.

The most accurate rumor, if there can be such a thing, is indeed the 2.2 liter, and where I got that info, I cannot say, but since it has been said recently I can repeat it.

Andrew

 

Perfect example Acura NSX. It's the first Honda/Acura car with VTEC. Now VTEC is associateted with all Honda cars.

 

Reasons to not produce more

1) If you see more than 3 stooks a day consistently, the gawk factor is gone. I had a 300zx, very fast and respectable car, couldnt stand it when every person i saw was driving one.
2) Its not very respectable if every dealer I have been in touch with tells me this is the last year of production, but its not??? That doesnt seem like Honda quality to me.
3) The S2000 isnt a CIVIC OR ACCORD, and lets hope it never becomes one. Its a unique car that will be remembered as a 2 year prod. If u didnt get it, haha, maybe you can buy mine when i raise the price 5g.
4) Its a plain fact that you will not make money on a car(although my dad tells me to sell since local dealers are selling for over 40k) but if the car is limited and isnt produced for more than 2 years, then it will hold its value better than if another one is on the showroom floor where a prospective buyer can purchase one.
5) Dont tell me you want to see as many S2000's as there are boxsters out there, one day i saw 5 of them in a 5 min period, now thats not good.

 

Andre, I was out to Laguna Beach for a visit early in December and I noticed the same thing... Boxsters everywhere... but I did not see one S2000!

 

If Honda really isn't making any money on the car, then why would they go spend more R&D money to develop a larger engine!?! If they already had the engine developed then they would've put it in the car in the first place!?! I would be very surprised to see a 2.2L go into this car in 2002. Essentially (if they did that) Honda would be saying their 50 Anniversary car wasn't good enough so they've got the redo it. So I really really don't think that will happen (despite what the 'supposed' insiders say). Maybe Honda might do that later down the road (like 2004+) and likely then the car would not be called a S2000 and, at least in the US, would likely be an Acura.