Honda dealers really want to have more cars for sale

Honda dealers really want to have more cars for sale

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Honda may have been hit harder by the ongoing supply chain crunch than its competitors if dealer inventory is any indication, Mitsubishi is another automaker that lost out on the new electric car credit system to the Inflation Control Act, and two other brands are slowing production lines in Europe . You’ll have to read to find out which ones are! All that and more in this Friday’s edition of morning shift On September 16, 2022.

First Speed: First you need to sell cars

The National Automobile Dealers Association’s “Attitude Survey,” which measures the temperature of how dealers feel about the brands they work with, found Honda is falling from third place in 2021 to sixth in 2022. That might not sound like a huge deal, though. But the brand has always been a mainstay in the top five, and the reason for the slip is particularly noteworthy. From Car News:

According to Honda spokeswoman Jessica Feeney, low product availability is the main reason the brand slipped out of the top five. Feeney said supply shortages and logistical challenges have left inventory at record low levels with dealers experiencing “incredibly high turnover.”

Bill Feinstein, president of Planet Honda in Tilton, New Hampshire, and general manager of Planet Honda in Union, NJ, as well as chair emeritus of the advisory board for National Honda Dealers, agreed.

“The big issue is product availability,” Feinstein said. Car News. “Honda dealers used to have a much higher level of productivity than other dealers.”

While Honda is typically among the industry’s two largest brands in terms of productivity, or annual new car sales per dealership, “this has clearly been affected by product availability,” he said.

Honda has been left particularly vulnerable, with sales seen declining for 13 consecutive months, with a number of days off vehicle supply at the end of August. Honorary Chairman of the Honda National Dealership Advisory Board believes in competitors — and especially Hyundai and Kia — weathered the storm better, and they take away from the Japanese automaker’s market share.

“There was some belief that Honda might be more negatively affected and recovering slower than others [manufacturers]Feinstein said. “We’ve all felt pressure from the Koreans, who clearly haven’t experienced the same supply chain effects that we had.”

Hyundai Motor’s portfolio, which includes the Hyundai, Kia and Genesis brands, is showing signs of recovery. Hyundai and Kia capped a five-month sales decline with double-digit gains in August. Randy Parker, CEO of Hyundai Motor America, said inventory is improving and he expects plant production to increase by 30 to 35 percent in the second half of the year, which will help rebuild dealer stocks. Genesis set a record in August with 5,102 units sold as demand for crossovers continued to be strong.

Feinstein said he considers Honda’s shrinking market share a concern. “This is worrying for retailers, because at the end of the day we are all competitive and we want to win,” he said.

In terms of brands that trended higher in the NADA survey, Lexus, Toyota, BMW, Porsche, and Subaru took the top five spots in that order.

2nd gear: Not what you need Mitsubishi’s big comeback

New Outlander It might not be the most compelling SUV ever or anything, but it’s definitely the best Mitsubishi product of all time, and people are responding to it. The upcoming plug-in hybrid variant was on its way to making the car more competitive—until the federal government introduced legislation that wiped out the $7,500 crossover credit, Because it is not built here.

How do Mitsubishi and its dealers feel about it? You can probably guess. From Car News:

Mitsubishi dealer Grant Petersen Jr. said the loss of the tax credit on the redesigned model was “disturbing.”

Petersen, CEO of Bronco Motors Family of Dealerships, which operates Bronco Mitsubishi in the Idaho suburb of Boise, said Mitsubishi is likely to have to absorb some of that $7,500 and lower the MSRP of the crossover to maintain its capacity. competitiveness.

Mitsubishi Motors North America CEO Mark Chaffin acknowledged the loss and said new EV incentive rules complicate product plans for the entire industry.

“There are a lot more questions than answers right now,” Chavin said. Car News. “Like the rest of the OEMs, we await further clarification and expect to see details coming out of the Treasury later this year.”

Chavin said the loss won’t change plans to launch the redesigned Outlander PHEV. But he said, “In the medium to long term, we will have to monitor market conditions and see where they are headed.”

Nor does Mitsubishi adjust pricing for the Outlander PHEV, which has not been disclosed.

“We remain confident of that [losing the tax credit] It wouldn’t make much of a difference to the sales success of this car,” he said. “We think we’re going to have a hard time keeping up with demand.”

Sure, Mitsubishi may struggle to keep up with demand out of the gate, but that won’t last forever. The notion that a $7,500 credit loss “won’t make much difference” to the success or failure of the Outlander PHEV is frankly unbelievable from where I’m sitting, but what choice does Mitsubishi have but to recover now? The company no longer has auto plants in the United States, and it will take a long time to get them started again. Part of me wonders if the inflation-control law will prove the final nail in the coffin that will send Mitsubishi out of North America forever.

3rd gear: 300C . sold out

It only took 12 hours, but all 2,200 models Last call for a strong muscle sedan Chrysler been talked about, motor direction Reports:

The car was revealed to the public on September 13, on the eve of the North American International Auto Show in Detroit. Order books were opened at www.reservation.chrysler.com and 12 hours later the car was sold out, says Chris Foyle, CEO of the Chrysler brand. There is now a waiting list.

Interested buyers only had to choose a color and dealer and leave an undisclosed deposit to insure one of the cars at $56,595.

It was a good test of Chrysler’s new digital booking process. Foyle says the brand wants to make it easier to buy and own a new car. The 300 may be phased out after 2023, but Feuell says she’d like to revive the name in a future product. With plans to have the Chrysler brand fully electric by 2028, and with the first all-electric model debuting in 2025, this future product potentially reviving the 300 name is likely the EV.

I miss the days when buying a new, long-awaited car didn’t depend on the frantic refresh of your browser window as if you were trying to grab the PS5. Then again, I really have no business to complain. I can’t buy a new car anyway.

Fourth gear: Seal for the future

General Motors will invest nearly half a billion dollars in a dedicated steel and aluminum stamping facility in Marion, Indiana. courtesy Reuters:

This investment will be used to purchase and install two new press lines, complete press and mold updates, and renovations and expand the facility by approximately 6,000 square feet.

The automaker said work on the facility will begin later this year.

GM’s Marion Metal Center, begun in 1956, produces sheet metal parts for several GM assembly plants to support production of Chevrolet, Buick, GMC, and Cadillac vehicles. The center currently employs more than 750 workers.

A company spokesperson told Detroit Free Press That cash flow would prepare the Marion plant for the brand’s “all-electric future.” They didn’t explain how, but if I had to risk a guess, I’d assume it was because more parts would need to be manufactured locally for those sweet and savory subsidies.

Fifth gear: Stellantis and Renault pump the brakes

The Spanish factories of the two automakers have been partially shut down as of Friday due to a silicon shortage, Reuters mentioned:

A representative from the CCOO union said Renault’s factories in the Spanish region of Castile and Leon will be suspended, with one shutting down completely on Saturday and the other canceling multi-day shifts this week and the following day.

At its Stellantis plant in Vigo, northwest Spain, the company has canceled shifts on Saturdays and Sundays.

They stopped production for 15 days in February. A representative of the Stellants union told Reuters that the lack of supplies could mean more closures at any moment.

One in the summer, some automakers He started seeing light at the end of the semiconductor deficiency tunnel. Different brands will make their way at their own pace.

Reverse: Add “William Durant’s middle name” to the list of things I didn’t know

#Honda #dealers #cars #sale

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