I decided not to buy Honda because of a shortage in their supply."After Mazda announced last week that it would halt orders on U.S. deliveries of all Japan-made cars, Honda has now decided to follow a similar action." (Wood Colum) By closing their factories in Japan Honda is limited on its supply production. At first glance this wouldn't be such a huge reason as to why not to invest in Honda however, the cares made in Japan are hybrids which are at their highest in demand. With "expensive gasoline and looming shortages of many of the industry’s most fuel-efficient cars is likely to cause runs on Toyota, Honda, Mazda and other dealerships."(Welsh Jonathan) and with gas prices at an increase "it is a strong indication of just how volatile and unpredictable energy prices can become in very short order." (Mark Phillips) buying Honda would be very risky to do. Since people are beginning to invest in hybrid and energy proficient cars, investing in Honda when they have a shortage in supply would cause a rise in price making it inefficient to invest in a hybrid.
Day Range 37.07 - 37.43
52 week Range 28.33 - 44.56
Today's Open 37.27
Phillips, Mark. "Gas Hikes: U.S. Will Survive If It Invests in Alternatives | Op-Ed | Kentucky.com." Lexington, KY Local News Provided by the Lexington Herald-Leader Newspaper | Kentucky.com. 28 Mar. 2011. Web. 28 Mar. 2011.
Welsh, Jonathan. "Panic Car Buying Likely To Spread As Shortages Worsen - Driver's Seat - WSJ." WSJ Blogs - WSJ. Jonathan Welsh, 27 Mar. 2011. Web. 28 Mar. 2011
Woods, Colum. "Honda Suspends Dealer Orders on Japan-Built Cars | AutoGuide.com News."Car Reviews: New Car Prices and Used Cars Classifieds. Web. 28 Mar. 2011.
Sophia Beytelman
I agree with Sophia with not buying the Honda stuck because of their shortage in supply. Right now the stock is going down: 34.33 and it seems like it will still go down so it is better to wait till it reaches its lowest
ReplyDelete- Anzhelica M