Honda blames poor March sales on short supplies
Honda says it doesn't have enough cars to sell in the U.S.
More than a year after a massive earthquake and tsunami rocked Japan, Honda says it is still struggling to replenish new car inventories in the United States.
Last month the overall market enjoyed a 13 percent increase in sales, but Honda's sales fell 5 percent during April. Although some might point to Honda's vehicle lineup for that drop off, the Japanese automaker says the decline can be blamed on thin U.S. Inventories.
"We are still suffering through some inventory issues," Mike Accavitti, American Honda's chief marketing officer, told Automotive News. "We were at about 65 percent of where we would like to be at end of February. We don't have every model a customer wants or the inventory in the right places. We produced as much as we sold."
Honda's passenger vehicle supply stood at 58-days on March 1, while the company's light-trucks were even tighter with a 36-day supply. A 60-day supply is considered ideal.
Tetsuo Iwamura, CEO of American Honda, says that Honda's supply issues should be sorted by the end of April. However, the executive failed to detail how Honda would correct the problem.