Speaking to its US dealers, American Honda Motor Co has said that they can resume taking orders of smaller, made in Japan offerings such as the Fit subcompact and Insight Hybrid.
The news comes as consumers in the US continue to look for more fuel efficient vehicles as gas prices hover around the $4 per gallon mark. Acorrding to American Honda’s Executive Vice President John Mendel, the company has “turned the corner,” when it comes fixing supply issues that followed in the wake of the March 11 earthquake in Japan. As a result, he expects production to return to “almost normal levels,” by August.
The news is welcome relief for dealers, whose supply of smaller cars was running desperately low in some cases. Mendel reiterated that dealers still needed to be aggressive on the sales and marketing front to move metal, even if stockpiles are returning to normal levels.
As a result of parts and vehicle shortages, Honda’s sales were down by some 22 percent in May. Although Fit production is back on track, supply of the company’s most popular cars in the US, the Civic and four-cylinder Accord, still remains limited.
[Source: Automotive News]