Why Honda is growing as Detroit falls behind

When consumers astonished the U.S. auto industry two months ago by quickly shunning trucks and going for gas mileage, the biggest beneficiary ended up being Honda Motor Co.

The No. 2 Japanese automaker, with the most fuel-efficient model lineup in the industry, never put both feet into the U.S. truck market, focusing instead on slow-but-steady growth with popular cars such as the Civic and the Accord.

It paid off in June. While its major competitors reported double-digit declines in sales and burgeoning truck and sport utility vehicle inventories, Honda had a modest 1 percent sales increase. Its car sales were up almost 20 percent from the same month last year; the Civic and the Accord were among the industry's top sellers.

"They are better positioned than anybody in terms of the products they have for this kind of environment," said Ron Harbour, author of a widely respected annual report on auto factory productivity.

Honda's top U.S. executive said Wednesday the company is well-positioned for $4 per gallon gasoline because it always has emphasized small, fuel-efficient vehicles.