American Honda CEO unsatisfied with Accord sales

NEW YORK Wed Apr 4, 2012 6:12pm EDT

NEW YORK (Reuters) - March sales of the flagship Honda Accord were "not satisfactory," but the company is working through the inventory problems that led to an unexpected slump, executives said at the New York Auto Show on Wednesday.

U.S. consumers bought 26,771 Accords last month, down from 31,533 vehicles a year ago. Total group sales were down 7.7 percent year-over-year to 115,833, American Honda said earlier this week.

"We are not satisfied with that," said American Honda President and Chief Executive Tetsuo Iwamura, noting the Accord was outsold by both the Toyota Camry and the Nissan Altima last month.

The company is still working through problems stemming from the March 2011 earthquake and tsunami in Japan, which disrupted production.

"We're still suffering the inventory issues associated with the disaster," marketing executive Mike Accavitti said.

Iwamura said total inventories were improving quite well but distribution of vehicles among dealerships was "kind of a problem at this moment."

He said the Accord sales slump was caused by a shortage of some popular models but that a new model in the fall would help improve Accord sales.

(Reporting By Nick Zieminski in New York, editing by M.D. Golan)

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Comments (1)
NEWS FLASH- The Accord is a dinosaur and lacks many of the features its competitors have these days. Take a drive to your local Honda dealer they have rows and rows of Accords. They are giving them away for close to dealer cost and sometimes even taking a loss. There is a reason why Honda posted a 5% sales decline last month; Toyota, Nissan, etc. offer better incentives, interest rates, free maintenance programs. Need I say more? When the big 3 were having problems Honda should have stepped up to try to take more market share just like Kia, Hyundai, Toyota did. You don’t see those companies posting poor sales last month.

Apr 04, 2012 6:58pm EDT  --  Report as abuse
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