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December 12, 2008 01:00 AM

Honda further slashes North American production

Ralph Kisiel
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    DETROIT (Dec. 12, 2008) — Honda Motor Co. is slashing 119,000 more units from its North American production schedule through March 31, the end of its fiscal year.

    The cuts are in addition to the 56,000 units Honda removed earlier from its production schedule.

    Honda's latest cuts will include 58,000 units from its two Ohio plants; 18,000 from its Lincoln, Ala., plant; 37,000 from its Canadian plants, and 6,000 from its new plant in Greensburg, Ind., which was not up to full production.

    Honda and Acura vehicle inventory soared 45 percent from 224,000 vehicles on Sept. 1 to 325,000 on Dec. 1. The auto maker had a 102-day supply of Honda and Acura cars in inventory on Dec. 1, up from a 30-day supply Sept. 1. Honda and Acura truck supply was 113 days Dec. 1, up from a 57-day supply Sept. 1.

    The auto maker will adjust daily output at its assembly and other plants. Honda also will idle its plants Dec. 22 and 23, and idle them for four to seven days next month, said Ed Miller, an American Honda Motor Co. spokesman.

    Honda will not lay off any employees.

    Honda had planned to produce 1,468,000 units through March 31 until the bottom fell out of auto sales in the fourth quarter, Miller said. The new production goal for the fiscal year is 1.29 million cars and light trucks, he said.

    That will be the fourth-highest production year in Honda's 27 years of vehicle manufacturing in North America.

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