Much of the news of the Carpocalypse has focused on the troubles of the Detroit 3 (especially Chrysler and General Motors), though most other manufacturers are suffering deeply from the economic recession, as well. For example, the Honda Motor Company has reported a $1.92 billion loss for the first quarter, with all its major markets seeing operating losses, according to reports by Automotive News and The Wall Street Journal. In the U.S., Honda saw a sales decline of 34.2 percent in March compared to March 2008.

Honda actually made a profit last year, and the automaker forecasts repeating this by the year’s end. The company was better positioned than many for weathering the economic storm, with a relatively lean corporate structure, mostly car-focused line up that doesn’t include V8-powered trucks, and a clear brand identity. Honda, also, never abandoned fuel-efficient four-cylinder engine technology and has earned an enviable reputation for fuel economy, reliability and value—hallmarks of keen interest to today’s buyers.

The reality is that the sudden decrease in the number of buyers worldwide and their shifting tastes is taking its toll on the entire industry. Beneath the surface, there is a concern not widely voiced; Honda will cut $433.8 million in research and development spending. Many other automakers will be doing the same, as they focus on short-term survival and profitability. Down the road, this trend might limit the pace of innovation needed to meet the challenges of cleaner emissions, higher fuel economy, and safety standards.

—Jeff Bartlett