Honda Extends Curbs on Production

Apr 16, 2011 // No Comment // Categories: Adam's Blog.

According to Automotive News, "Honda Motor Co. has extended reductions of vehicle output at its U.S. and Canadian plants through May 6.

The automaker had previously said it would reduce vehicle output through April 22. Decisions have been made on a plant-by-plant basis on how much to cut back production in order to conserve parts.

Affected plants include East Liberty, Ohio, which makes the Honda Accord Crosstour and CR-V; Greensburg, Ind., which builds the Honda Civic and Civic GX; Lincoln, Ala., which makes the Honda Odyssey, Pilot and Ridgeline; Marysville, Ohio, which produces the Accord and the Acura TL and RDX; and Alliston, Ontario, which builds the Civic and the Acura CSX, MDX and ZDX.

Honda has been altering production schedules at those plants since March 30 in the wake of the March 11 earthquake and tsunami in Japan. The automaker said it anticipates that additional production adjustments will continue after May 6.

Honda's only plant in Mexico, in El Salto Jalisco, has not yet been affected. It produces the Honda CR-V.

Honda will also delay informing dealers of their June allocations, according to a memo sent by John Mendel, executive vice president at American Honda Motor Co.

In the memo, Mendel says the company does not have sufficient information about vehicles that will be built in North America in June at this time. Dealers had expected to be notified of allocations on April 18.

Honda spokesman Gary Robinson confirmed that Mendel sent a memo to dealers today discussing allocation of June production, but said the company does not comment on allocation information.

Honda has already restricted dealer orders for June, so that allocated colors and trim levels for U.S.-built vehicles cannot be altered. It also has suspended U.S. dealer orders for Japan-built models that are sold here, including the Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and RL and a small number of CR-Vs."

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Adam's Commentary:

Honda, like Toyota and the other manufacturers affected by the Tsunami in Japan will have a difficult time getting their production back to pre-tsunami levels.  It means fewer vehicles on dealer lots, fewer discounts, and fewer incentiv.  If you want a Honda, act now or you might be considering another type of vehicle if you become price sensitive.

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