Honda expects a production increase in July and August, and said the worst effects of the March 11 earthquake are now behind it.
According to John Mendel, executive vice president of American Honda in a memo written to dealers yesterday, Honda has more CR-Vs, Pilots and Fits in stock now than it did a year ago.
However Accord and Civic inventories are lower than last May due to damaged supply chains.
Honda sales were down by one-third in the first 10 days of May, and production is expected to bottom out this month, Mendel said.
"As we have stated before, we hit our low point and we are now moving ahead with increased production capacity," Mendel wrote.
He did not specify whether inventories for June would be much better, but said in July he expected an 11-percent rise over June, and increased production in August over July.
[Source: Automotive News]