Monday, 25 April 2011

Honda slashes N. American production in wake of earthquake, tsunami

Wednesday, Mar 30th, 2011 @ 3:23 a.m.

Honda has released a new statement regarding the latest statuses for all of its operations in Japan and North America, with the biggest news coming in the form of reduced output at its North American facilities.

As a result of “interruptions in parts supplies” coming from Japan, Honda said that it’s U.S. and Canadian plants have been notified that beginning Wednesday, March 30, the automaker will be making temporary adjustments at production plants to reduce output and conserve parts.

The temporary adjustments are not universal, and the automaker says that the level of change will vary by location. Honda builds about 80 percent of the vehicles it sells in the U.S. in North America, and claims that the vast majority of parts come from its 600+ list of tier-one suppliers in the region, but even one missing part can bring a halt to a model’s production.

In a memo distributed to Honda employees and obtained by Automotive News, the automaker reiterated that as of now Honda is “not shutting down anything.” The automaker went on to explain, “While we are continuing to keep all North American plants open, we will be reducing production selectively, on a temporary basis, to cope with parts supply issues.”

Some plants have already been notified that they will be at 50 percent output levels, and running half the normal shift durations as a result.

References
1.’Honda, citing parts…’ view


View the original article here

No comments:

Post a Comment