Honda warns U.S. dealers of cuts in vehicle supplies

LOS ANGELES — Honda is warning U.S. dealers that vehicle deliveries to retailers could fall by 40 percent in the coming weeks compared with previous estimates, due to parts supply problems out of Asia, according to a letter sent to retailers.

The letter, which was confirmed by a dealer who expressed disappointment over the cuts, said the resurgence of the coronavirus in Southeast Asia had converged with already-tight microchip supplies to impact Honda production more than had been expected.

The letter was published on the Honda fan website civicxi.com on Wednesday. Honda Civic fans on the forum noted that the letter also confirmed the start of production of the redesigned 2022 Civic hatchback in late September, as expected. That was seen by Civic fans as a silver lining in otherwise bad news for Honda.

"Our purchasing and production teams continue to carefully manage the available supply of parts to run production and meet the needs of our customers," American Honda said in a statement emailed to Automotive News on Thursday. "This is a fluid situation and we are not going to discuss the detailed impact to volume or specific models.

"In regards to the Civic Hatchback, we will have more details to share in the coming weeks."

The letter, dated Aug. 25, said: "Honda will start shaving production on a number of models, starting this week. For September, we expect dealer arrivals to be 40 percent less than planned."

Some models will be impacted more than others.

Supplies of the Passport and Pilot midsize crossovers are expected to remain steady, the letter said, in addition to mentioning the on-time launch for the Civic hatchback, which is being assembled in the U.S. after moving from Europe.

The letter also noted that the situation is fluid and Honda is looking at adjusting its dealer recognition programs in light of the shortages.