Honda Inventory Levels Hit a Dangerously Low Marker

As a Wall Street Journal report reveals Honda inventory levels are running dangerously low, with some of the largest US dealers being close to about 20 percent of normal levels. Thus, August could turnout to be the worst months yet for the car manufacturer.

“This will definitely be the worst month as it relates to Honda dealers,” Rick Case, owner of one of the top Honda dealers in the Country, was quoted as saying by leftlanenews.com.

He further explained that his dealership has ran out of Civics, Accords and Odysseys, mentioning that inventory levels are below 20 percent of normal levels. Also, preorders are adding weight to the inventory levels, meaning that vehicles arrive from shipment and head home with their owners without ever entering the dealer lot.

A Honda spokesman pointed out that the output levels in the US are getting close to normal, at the situation adds the fact that there is a delay from production to dealer lots.Recently Honda has been a better seller than Nissan in US. Still, Honda’s inventory levels are the lowest, with data showing the trend still heading downward below 20 days worth of inventory.

The manufacturer saw a decrease in sales last month of 28 percent and ended with just 84,705 total vehicles in inventory nationwide, which means less than 30 days' worth of sales. Also, Toyota currently has around 172,500 vehicles in stock or about a 34-day stock , with Nissan being slightly ahead with 174,500 units in stock nationwide.