Honda, Toyota are starting to restock U.S. dealerships

Article by Christian Andrei, on August 5, 2011

The tsunami crisis in Japan has bottomed out in July for American Honda Motor Co. and Toyota Motor Sales U.S.A. as they lost 6.9 points of market share to their Korean and Detroit rivals compared to the previous year. In a flat market, Honda and Toyota suffered much in July. However, they are beginning to restock U.S. dealerships, and August should be better for both companies marginally.

Don Johnson, U.S. sales boss of General Motors, commented that more Hondas and Toyotas available will bring more buyers back into a still-fragile market.

He added that many of the brand-loyal customers have opted to wait for the selection and price to improve. Sales increased a tepid 0.9 percent to 1.1 million light units in July, which is the third straight lackluster month after eight months of double-digit growth.

While Honda and Toyota hit the bottom with a combined 19.9 percent July share, the combined share of the Detroit 3 increased 3.9 percentage points from July 2010 to 47.6 percent.

On the other hand, Hyundai and Kia gained 1.4 points from the same period last year, to a combined 9.9 percent share. Sales dropped 28 percent for American Honda, which had a 28-day stock of vehicle units at the end of the month. Toyota Motor Sales declined 23 percent, with a 34-day supply on August 1. For Subaru of America, sales dropped 9 percent.

It was also affected by the quake. At the end of July, it had a 19-day supply. However, for the Japanese, supplies are leaning towards normal levels.

Toyota is boosting output in Japan and it now intends to run its factories in North America overtime to rebuild dealer inventories. Ray Tanguay, who is the head of Toyota's North American manufacturing operations, commented that the factories will operate at 110 percent of capacity through September.

If you liked the article, share on:


Login or Create new account to add a comment!


Most of you may have heard or already have one of those autonomous home appliances doing the house chores. Thus, it’s not anymore unusual to see a car going places...
by - October 20, 2016
Mini has just provided the world with a preview of its first hybrid model that employs petrol-electric power to propel its wheels. Derived from the second generation of the Mini...
by - October 20, 2016
For the second time in three years, German driver Marco Wittmann of BMW Team RMG reached the summit in the DTM Drivers’ Championship. Even though Wittmann only secured a fourth...
by - October 20, 2016
The recent motor show has given us a lot of promising vehicles to look forward to for the time being. After we caught a glimpse of the future of motoring,...
by - October 19, 2016
Almost immediately after its launch, car designers have rendered their own adaptations of the new BMW 5-Series (G30). It’s just how it goes. Most folks with very creative minds couldn’t...
by - October 19, 2016