Honda Cuts Production in North America, Japan; Ends S2000
By Michelle Krebs January 27, 2009By Michelle Krebs
DETROIT -- Honda announced further production cuts in North America and Japan as the global recession deepens and vehicle sales continue to decline.
The additional cuts are across the board at Honda's North American plants and models, with its slow-selling Honda Odyssey and Pilot taking a big hit.
In addition to production cuts, Honda announced this will be the last model year for its Honda S2000 sports car.
North American Cuts
In North America, Honda said Tuesday it would take another 29,000 vehicles out of its production schedule through this fiscal year, which ends March 31. That brings the grand total of units cut from Honda's original plan for North America as announced last April to 204,000 fewer vehicles -- nearly a full assembly plant worth of production.
In total, Honda plans to produce 1.264 million vehicles in North America for this fiscal year, a 14 percent decline from the 1.468 million previously planned.
The most recent cut of 29,000 vehicles include:
- 9,000 fewer vehicles at Honda's Marysville, Ohio, plant, where it makes the Honda Accord sedan and coupe as well as the Acura TL and RDX;
- 5,000 fewer vehicles at its East Liberty, Ohio, plant, where the Honda Civic, Element and CR-V are assembled;
- 6,000 fewer Honda Odyssey and Pilot models from its relatively new Lincoln, Alabama, plant. The Odyssey minivan and Pilot SUV, redesigned for 2008, play in the slowest selling segments. Honda plans to begin producing the Honda Ridgeline truck at the plant this year. Beginning this summer, the plant will also build the V6 version of the Honda Accord, replacing imports with U.S. produced models;
- 9,000 fewer vehicles from Honda's Alliston, Ontario, Canada, complex where the automaker builds at two plants the Honda Civic and Accord MDX and CSX, an Acura version of the Civic not sold in the U.S.
Cuts at Home
In Japan, Honda will assemble 21,000 fewer vehicles. Production in Japan will total 1.15 million vehicles, down 12 percent from its initial target. Honda will no longer export any Accords, previously about 7 percent of its U.S. sales. Honda said it will eliminate the jobs of all of its 3,100 temporary workers in Japan in April.
In total, Honda's North American and Japan production combined will close the fiscal year at 12 percent below the year-ago levels, the automaker confirmed in a statement Tuesday.
More Cars for China
While it cuts in North America and Japan, Honda plans to ramp up production capacity in China, the Nikkei business daily reports. The paper said Honda plans to raise Chinese capacity to 650,000 vehicles a year, up from 530,000 by modifying existing assembly lines. Honda expects strong sales of its fuel-efficient models, notably the Civic and the CR-V.
Car sales in China have been slowing but continue to increase. Honda's sales in China rose nearly 12 percent last year, down from 31 percent in 2007.
Sayonara, S2000
Honda will end production of its niche sports car, the S2000, after this model year. Introduced in 1999 as a 2000 model, the sports car had been created as a limited-edition tribute to Honda's 50th anniversary and was intended to have a limited run. Its popularity allowed it to have a longer life than planned.
The S2000 is sold in 64 countries with combined global sales of more than 110,000 units since its introduction in 1999. Over 65,000 have been sold in the United States, Honda said.
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