American Honda Finance Corporation Company

If you're fonda the idea of driving a Honda, you might want to call on American Honda Finance. Operating as Honda Financial Services, the company provides retail financing in the US for Honda and Acura automobiles, motorcycles, all-terrain vehicles, power equipment, and outboard motors. Its American Honda Service division administers service contracts, while Honda Lease Trust offers leases on new and used vehicles. Honda Financial Services also offers dealer financing and related dealer services. Ancillary services include servicing loans and securitizing and selling loans into the secondary market. A subsidiary of American Honda Motor, the company began as a wholesale motorcycle finance provider in 1980. Financial Analysis American Honda Finance Corp's. (AHFC) fiscal 2012 (ends March) revenue declined more than 10% from the previous fiscal year, due mainly to a decrease in revenue in Honda's automobile business by the Great East Japan Earthquake in March 2011, the floods in Thailand and negative foreign currency translation effects. Operating income fell nearly 16% over the same period, due mainly to a decrease in income attributable to decreased net sales, model mix and negative currency effects. Strategy American Honda Finance Corp. (AHFC) exists to provide stability to support sales of new and used Honda and Acura vehicles throughout North America, Honda Motor's largest market. To that end, AHFC seeks to preserve funding diversity, balanced liquidity, and maintain a prudent maturity profile. To spur growth of its US business, in 2012 the company opened its ninth regional office, a 25,000-square-foot facility in Charlotte, North Carolina, to serve Honda buyers in the Carolinas, Maryland, Tennessee, Virginia, and West Virginia. Honda sales in North America have fallen more than 17% since fiscal 2010 (ends March).