Honda Motor Co. (NYSE:HMC) has sent a memo warning dealers across the country it expects sales to drop nearly 40 percent this summer. While the sales have seemed to recover a bit from a dismal May, the company is still months away from normalized sales and production.
Honda expects to sell just 142,500 cars and light trucks during July and August, down from 221,166 for the same months last year. The memo, reviewed by the Wall Street Journal, seems to show bleak news in the short term. The Wall Street Journal reported that Honda’s memo warned that “It won’t be easy” to achieve even that reduced sales goal, and that inventory will be a challenge during the summer months. The company sold almost 91,000 units in May of 2011.