“If we’ve always operated historically with 400,000 vehicles in the pipeline, could we do that with 300,000? … Could we do that with 100,000? I don’t know what the number is, but we are certainly now doing the investigation,” Gardner said.
Honda and Acura dealers are now selling deep into the production pipeline. American Honda’s inventory at the start of 2022 was 20,000 on the ground, he said.
One example of American Honda and its dealers adjusting: Financing and lease incentives are guaranteed at the time of purchase, even though they may no longer be valid at the time of delivery, Gardner said.
American Honda reported 2021 sales of 1.47 million cars and light trucks at the Honda and Acura brands, an increase of 8.9 percent over 2020. Deliveries in pre-pandemic 2019 totaled more than 1.6 million vehicles, including 157,385 at Acura.
Sales in 2022 are likely to fall further, Gardner said. “Based on what we know today, it will be a challenge for us to match last year’s sales level.” He put the number at 1.2 million to 1.3 million for the Honda brand for 2022 and around 160,000 at Acura.
