Honda Motor Company is adamant that new models planned for the next 24 months and replenished vehicle inventory will turn its luck around next year.
Honda’s loss of North American output in October and November due to parts shortages caused by floods in Thailand led to the automaker’s U.S. sales decline last month, even though the market jumped 14 percent overall. Honda’s performance was also affected earlier this year by Japan’s March earthquake and tsunami, which resulted in six months of declines because of reduced auto inventory.
“I’m going to the shrine to pray to avoid any more such disasters from Mother Nature. Next year, even starting this month, we’ll recover,” Tetsuo Iwamura, Honda’s North American boss, was quoted as saying by Bloomberg. The U.S. is the largest market for Honda, but its sales shrunk by 5.3 percent in the first 11 months of the year. Subsequently, Honda’s market share has fallen to 9 percent from 10.5 percent so far in 2011.
Honda plans to boost production of its new Civic and CR-V models and started December with about a 40-day supply of vehicles. Next year, the automaker will release a revamped Accord and other models yet unknown. “Fortunately, we are going to have lots more models in the next 24 months. New models with good technology, yet very value-oriented pricing for the sake of competitiveness.That is our key for a successful year in 2012 and onwards,” Iwamura said.