Honda Vehicle Shortage Expected To Continue Until Fall

By Author: Marty Vergel Baes
Total Articles: 413
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The strongest earthquake in Japan which happened last March has actually created huge losses on the part of Japanese car makers such as Toyota, Nissan, and Honda. Due to this, more car finders who prefer to purchase Honda vehicles would surely experience shortages of Japanese-made vehicles. Due to this, Honda has announced that they would be reducing the production of their vehicles which would also affect the supply of their cars worldwide. However, the company hopes to resume full-production by fall of this year. They are just waiting for the production status in Japan to stabilize before turning their production in the US into full-scale.

The problem which forced Honda to reduce its total production by 50 percent is not on the vehicle assembly itself. This situation was triggered by the shortage of components used in assembling their vehicles that are imported from their suppliers in Japan. These components include semiconductors, diodes, and resins used in producing all types of vehicle. With the present situation, Honda has limited their total vehicle output in order ...
... to ensure that their cars and SUVs will be present in the market even in smaller quantities.

The most affected vehicle model produced by Honda was probably the Honda Civic since most of the parts needed for this model that originates from Japan were the ones that were highly affected by the natural disaster. As a result, almost every new car finder would possibly experience an increase on the sticker price of the Civic as well as on the amount involved in most auto loans used to finance this model.

However, Honda is trying its best to maximize the production of other vehicle models such as the Accord and the CR-V. This could be a good strategy for the company since only a few components of these models are imported overseas and their stocks of major parts could still supply the needs of their Indiana and Ontario plants.

Despite the known inventory shortage, Honda will be doing its best to release more units of 4 cylinder vehicles such as the Honda Accord, Acura RDX, and the Honda CR-V by August of this year. In addition to this, they are planning to accelerate the production of more Odyssey, Ridgeline and Accord Crosstour powered by V6 engines within the same month.