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Saturday, July 26, 2008

Honda Soars - Its the Moped


The article throws up a red flag because the world economy is slumping yet Honda is posting record sales. How can that be? Gas is more expensive all over.

NYT: Honda Posts Record Profit on Sales in New Markets
Demand for Honda products is booming in Asia, Brazil and other new markets, making up for declines in vehicle sales in the United States, Europe and Japan, it said.
Honda on the New York Stock Exchange

According to MSN Money, Honda stock is regarded as a hold, meaning that if you own it - don't sell it, but don't buy it if you don't own it.

One of the reasons why Honda is profitably succeeding has to do with Honda's motorcycle sales.

Honda surprises with profit growth in first quarter
Motorcycle sales, on the other hand, jumped 20.5% on a sharp increase in Asia and Brazil.
It gets even better. Besides making motorcycles, Honda also makes mopeds.

Now its making sense. The moped can get wicked good miles per gallon upwards and into the 90 mpg range. That is a lot of mileage compared to an over sized SUV.

Moped and Scooter Reviews
Mopeds and Scooters may become very popular in the coming years with gas prices rising and oil supplies decreasing around the world. Why not own a small gas powered moped/scooter for those around town trips or short commutes? The 49cc mopeds are ideal with 80-90 miles per gallon in fuel economy and they go almost 40 MPH. The nicer scooters are about $1200-$1500, but you can find cheaper mopeds for $600.
I'm going to go out on a short limb here but Honda succeeds because it is heavily invested in making small two wheel vehicles. The mopeds get amazing mileage and the cost is ridiculously low. The thing of it is, America has to adapt to higher gas prices. Admittedly we are going to see a small decrease at the pump because the price of oil has decreased to around $125 per barrel. Eventually that cut from around $145 per barrel will show up at the gas pump. We doubt that is something that will last for years to come.

Regardless its hard to imagine America running around in a moped but its something to consider. I could learn to like it. I wouldn't want to take a moped out on a highway, but definitely I would take it on city streets and around town, the kind of roads with 30 and 40 mile per hour speed limits.

Honda Mopeds and Scooters

Finally, you will like this, there are prototype Honda electric scooters. Electric Scooter

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