The officials of Honda Motor Co. have passed a message to its U.S. dealers that its car production is likely to increase in July and August. This is a signal that company’s efforts to restore supply chains shattered by the earthquake and tsunami that hit Japan on March, 11.
According to John Mendel, the executive vice president of American Honda, the availability of vehicles built in July is supposed to increase by 11 per cent when compared to June. Furthermore, the production is going to increase also in August so the dealers are going to see the boost in volume of sales very soon.
According to Honda spokesman, although the company hit its low point some time ago, now it moves ahead with the increased production capacity. That memo has certainly put Honda dealers at ease, as some time before Toyota Motor Corp. decided to ramp-up production, sooner than expected.
Honda division sales dropped by 33 per cent in the first 10 days of May, compared to the same period previous year. Yet, the dealers are encouraged to stay optimistic as the supplies of the new models to come are going to be bigger, when opposed to those from the previous year.
Mendel makes a point that Honda has more CR-Vs, Pilots and Fits in stock these days, than it used to last year. That is why the company is perfectly capable of getting along with the growing demand of the automotive market.
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