(June 16, 2011) — Honda has told its U.S. auto dealers to honor discount offers, even if customers have to wait for delivery because a model is out of stock, Reuters reported Wednesday.

Honda and its Japanese rival, Toyota, have seen production drop significantly since the earthquake and tsunami, leaving some dealers with insufficient inventory.

"We know we're going to have low inventories on some models — Civic is the perfect example," Honda spokesman Gary Robinson said. "What we don't want to do is just send those people on their way without taking care of them."

Honda told U.S. dealers on Wednesday about the new effort, called the Honda Promise, as it attempts to boost sales and stem market share losses. Honda also unveiled other incentives on Wednesday.

Honda will agree to extend expiring leases by 12 months for customers using Honda Financial Services, the company said in a memo to dealers, The Wall Street Journal reported.

The automaker's U.S. sales dropped 22.5 percent in May, reflecting lower discounts and tight supplies.

Source: Reuters