Report: Toyota, Honda sales tumbled as much as 50 percent during early May

[ahmed_7erzon]

Selling periods aren’t typically limited to just a few days, but the first 10-days of May painted a dark picture for earthquake-ravaged Toyota and Honda, with sales falling by as much as 50 percent.



U.S. Toyota and Honda dealers are now feeling the full effect of Japan’s March 11 earthquake, with limited inventories and non-existent incentives dramatically reducing sales during the first 10-days of the month. According to industry insiders, Toyota sales crashed 50 percent during the 10-day period while Honda’s sales slid 33 percent.
Lower inventory levels did play a role in the sales declines, but a total lack of incentives was the main factor in the early drops. Both Toyota and Honda slashed incentives during the early part of the month to ensure inventory levels didn’t fall below acceptable levels.
“We had enough cars for May to have a reasonable month,” said Larry Kull, who owns Toyota dealerships in New Jersey and Florida. “But, in general, the anticipated reduction of shipments and the associated reduction of manufacturer incentives were like a wet blanket on the sales end.”
Toyota has since restored incentives spending in the U.S. and has promised dealers a faster than expected recovery. However, the situation looks to be a little more dire at cross-country rival Honda with the automaker warning dealers it could be late summer before sales return to normal