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CR-V sales continue to be excellent! Up 1.7% Feb 2019 over Feb 2018, and up 10.5% Year-to-date 2019 over 2018.

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This is good.

Internally Honda will split their sales volume into what is known as promoted volume and nonpromoted volume. Nonpromoted is your loyalists or your less price sensitive folks, and strong nonpromoted sales and growth YOY is a sign of a healthy business. Promoted growth is fine too, but it is subsidized and you make less money that way. Maximizing total volume while not subsidizing your base (giving deals to folks who would have bought anyway) is the goal, but it's not easy. Then there's responding to competition, managing inventory, etc that all gets factored in.

We do know that Honda bought down the price to drive volume last quarter, as they mentioned extra promotion pricing as putting downward pressure on profits. Again, not a bad thing but it is something that they can't do long term.

Some car companies have tried an always-low-price option where they never promote but generally provide a lower average price always. Saturn comes to mind in particular.

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