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Hurricane Sandy Will Not Affect Honda Sales Much

The United States is Honda’s biggest market and the northeast is the populated part of the U.S., so you would think the devastation of Hurricane Sandy would deeply affect their year-end sales projections. Well, you’d be wrong.

Honda still expects sales to exceed last year’s by about 25 percent, meaning about 1.46 million Hondas will be delivered. Honda sales for the month of October were about half of what they were expected to be because Hurricane Sandy hit during the busiest time of the month, but Honda expects to make up for that in November.

“November will be a pretty good month for us — I see nothing different in November and December that will change the course of where we’ve been this year,” Mendel said. Honda brand sales for the year should be “within 10,000 or 12,000 units” of 1.3 million, with the Acura luxury brand at “160,000, maybe a little bit more,” he said.

The demand for the redesigned CR-V, blockbuster 2013 Honda Accord and sports Honda Civic will keep people coming to Honda dealerships in droves.

I think this article skips over an important part of the affect Hurricane Sandy could have on the automotive industry in the Northeast. It points out that some dealerships lost inventory that will have to be replaced, so that should help a little with sales. But what about the thousands of people who lost their cars to flooding and wind damage? According to the article, “As many as 200,000 new and used vehicles may eventually be replaced in the region as a result of the storm, the National Automobile Dealers Association estimated this month.”

It is often said that natural disasters provide opportunity and I think that as people try to resume their normal lives, they will buy new cars…and of course, stop at their local Honda dealerships first. Hurricane Sandy a small negative impact on the month of October, but perhaps it will actually help their year-end sales as people replace damaged vehicles.

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