2012 Honda CR-V Will Arrive On Time, Despite Supply Shortages

2012 Honda CR-V Concept

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Last week, Honda warned shoppers that the redesigned 2012 CR-V could be delayed due to severe flooding in Thailand. An article posted last night to Auto News, however, confirms that the CR-V will arrive on time after all.

The Thai floods have had a significant impact on Honda's production schedule -- and its bottom line. Most significantly, Honda has closed all of its facilities in Thailand, and they may not open again for six months. The automaker also scaled back production at its six North American facilities to 50% output through November 10, and it scrapped current financial forecasts. (Yesterday, the floods forced Toyota to follow suit and nix its own estimates.)  

Though most Hondas sold in North America are built using parts from North American suppliers, the 2012 CR-V depends on "a few critical electronic parts" from Thailand. Honda has been working with other companies throughout its supply chain to address the problem, and apparently, it's found a solution.

News of the 2012 Honda CR-V's on-time arrival was sent to dealers yesterday. In that memo, Honda noted that production at U.S. facilities will rise slightly -- up to 75% capacity -- through November 23. Production in Canada will also get a boost, but plants there won't return to full output until November 25 at the earliest.

The 2012 Honda CR-V has already appeared in concept form at the Orange County International Auto Show. The production version will debut next week at the 2011 Los Angeles Auto Show, and it should roll into showrooms this December.

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Honda Cuts U.S., Canadian Output By Up To 50% Due To Parts Shortages In Japan

The Tohoku earthquake and tsunami that struck northern Japan on March 11 has affected millions of Japanese citizens, their families, and businesses. The country's auto industry was hard-hit -- both directly and indirectly -- and most Japanese automakers halted operations to grieve for lost workers, allow families time to re-connect, and assess damage at facilities.

The effects soon rippled outward to other countries, pointing out how quickly local incidents can have a major impact on global production. The latest news comes from Honda, which says that operations at some U.S. and Canadian plants will be cut by up to 50% due to a lack of parts from Japanese suppliers directly affected by the disaster.

Honda factories in Lincoln, Alabama, Greensburg, Indiana, Marysville, Ohio, and Alliston, Ontario will see most, if not all shifts cut to four hours. Honda's facility in East Liberty, Ohio, however, will run a nearly normal schedule, as will plants in Anna, Ohio and Jalisco, Mexico. Together, those plants build a wide range of models, including the Honda Accord, Civic, Element, Odyssey, and Ridgeline, as well as the Acura RDX and Acural TL.

Honda has not said which parts are causing the slow-downs, nor has it indicated which vehicles are most directly impacted by the shortage, but Honda spokesman Ed Miller has reiterated that "We're not shutting down anything." As of yet, we've heard nothing about price increases on Honda vehicles, although there have been reports of dealers scaling back incentives.

Employees affected by Honda's production scale-backs have three options: they can stay on-site during non-working hours and keep their normal pay; they can take vacation time; or they can take time off without pay, but with no negative impact on their attendance.

It should go without saying that our thoughts are with the people of Japan and their families as they begin the process of recovery. If you would like to contribute to their efforts, please consider making a contribution through the Red Cross or other service organization.

[AutoNews]

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