Why Did Honda Discontinue Manufacturing the Honda Prelude?

The Honda Prelude, once a revered model in the automotive industry, was discontinued due to a combination of factors including changing market demands, increased competition, and economics.

Reasons for Discontinuation

The introduction of the RSX and the Accord V6 Sport 6-speed motivated the discontinuation of the Prelude. The Prelude, being very similar to the Accord, had only a unique engine in the form of the H-series. Once the H-series engine was retired, there was no further justification for producing the Prelude. This move made the Prelude an unnecessary model as both vehicles shared significant similarities in design, features, and performance.

Economic Factors

The usual reason for slowing sales, which made it unfeasible to design a new model, played a significant role in the discontinuation. The world had ceased buying this specific type of vehicle, with the exception of the much cheaper Hyundai Coupe. This reduced market demand led to declining sales, making it unprofitable for Honda to continue manufacturing the Prelude.

Profitability and Market Competition

The Prelude's sales numbers fell short of what Honda had originally anticipated. Additionally, the Honda two-door coupe was outperforming the Prelude in sales. Honda aimed to maximize its profits by focusing on a smaller number of car lines, which eliminated the Prelude as it was built on a different assembly line, reducing its profitability. These economic factors, combined with competition from other car manufacturers who sold more vehicles, were the primary reasons for the Prelude’s discontinuation.

Engineering and Technology

While the Prelude was undoubtedly a technologically advanced vehicle, it was overengineered, leading to a loss of profit on each sale. For example, in 1989, the Prelude SI featured innovative four-wheel steering technology - a feature that was impressive for its time. Despite these cutting-edge innovations, the Prelude was not profitable enough for Honda. The company likely focused on maximizing its profits and streamlining its production lines, leading to the eventual discontinuation of such a unique and innovative model.

The Prelude in the Aftermarket

Interestingly, even though the Prelude was discontinued, it continues to hold a special place in the hearts of automotive enthusiasts. Tuners and enthusiasts often take the original internals of the Prelude and modify them to create entirely new and distinct vehicles. This practice underscores the legacy and enduring appeal of the Prelude.

In conclusion, while the Prelude was a technologically advanced and innovative vehicle, the combination of market demand, economic factors, and overengineering led to its discontinuation. Despite these challenges, the Prelude remains a cherished and influential model in the history of Honda and the automotive industry.