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

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Nearly all details have been set with regards to the upcoming market introduction of the new Jaguar I-Pace. Its production version was recently previewed at the 2016 Los Angeles Auto...
by - December 8, 2016
WM Motor, a new China-based automaker, recently revealed its forthcoming lineup consisting of affordable electric vehicles. While there is a company is the U.S. that has the same name, they...
by - December 8, 2016
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