Honda annual clearance to reverse sales trend?

Can extended warranty and free accessories during Honda's yearly sale turn around a terrible year for the importer?
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Honda needs its annual clearance sale to fire up buyers like never before. The importer has seen sales slump by over 7000 units in year-to-date (September) VFACTS figure — after two consecutive years barely reaching 30,000 units for the same period.

Sales so far for 2011, according to VFACTS, have reached 23,490 — a far cry from 30,677 the previous year and 31,787 the year before that. And neither 2010 nor 2009 were highwater marks for sales, not against the year-to-date figure of 41,243 in 2008. The Global Financial Crisis struck at the end of 2008, crippling consumer confidence in Australia.

An earthquake and tsunami in northern Japan this year ensured that the importer's supply chain would not sustain sales during the second quarter, so with production back to rights the company is playing catch-up. News of a flood disaster in Thailand, where a number of local-spec Hondas are built, couldn't have come at a worse time. Honda has already dropped prices and adjusted equipment levels of most of the models available for sale over the course of this year. 

The annual clearance provides buyers with accessories worth up to $500 and a warranty extended to five years or 140,000km, inclusive of roadside assist for the duration. That offer applies specifically to the Accord Euro, which has been upgraded for the new model year and is advertised at $32,990 driveaway.

Honda's people mover, the Odyssey, is also offered with the same incentive of bundled accessories and extended warranty, priced at $39,990 driveaway.

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