Honda, Toyota dealers will have to wait the fourth for inventory to return to normal

Article by Christian A., on August 15, 2011

Dealers of Honda and Toyota will have to wait until the fourth quarter of this year or longer before their inventory, which was affected by the major earthquake in Japan, goes back to normal levels. For now, they would have to expect modest incentives, firm transaction prices and considerable breathing room for the Detroit 3, which are silently taking away market share from the two Japanese vehicle manufacturers.

A multibrand dealer, who requested anonymity, stated that Honda and Toyota have privately informed dealers that inventory will improve significantly around the middle of October.

However, the dealer added that the automakers will not wait for November on incentives and that they will go hard after the share they lost.

The timeline is still unclear regarding when inventories for Honda-Acura and Toyota-Lexus-Scion will return to normal levels and when the incentives will begin to rise industry-wide. According to Alec Gutierrez, vehicle valuation manager at Kelley Blue Book, they are not expecting the “normal Labor Day marketing push."

He added that Honda and Toyota could bump up their incentives by November or December, and then the Detroit 3 and the others would match them.

Mike Michels, spokesperson at Toyota Motor Sales, stated that even with full Japanese production resuming and North American facilities currently operating at 110 percent, the company can not bring dealer stock to year-before levels until around the first quarter of 2012.

On the other hand, Ed Miller, spokesperson at Honda, shared that the company's factories last August 1 resumed full production of all vehicles except the Civic. He added that demand may be increasing along with inventory.

Furthermore, Miller stated that they will continue monitoring the market place and use incentives as a tactic but not as a long-term strategy. Moreover, advertising and other aspects of the business will continue to go back to a more normal state around the fourth quarter, Miller added.

Topics: honda, toyota

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries