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Honda North American Production Drops by 119,000 Units

Still struggling to remain on the floating line and minimize loses caused by the global economic recession, Japanese carmaker Honda today announced a new production cut for the North American market, reportedly bringing very poor sales. According to Autonews, Honda lowered production by an additional 119,000 units, following another 56,000 unit cut announced a few months ago. Basically, the reason is the same over-discussed global recession which pushed worldwide carmakers close to bankruptcy and simply destroyed sales, revenues and profits.

Honda does nothing more than to adapt its production for the market demands which unveiled a continuously decreasing trend since the beginning of the crisis. That's why the Japanese company said it will lower production by 58,000 units at the two Ohio factories, 18,000 cars at the Lincoln, Alabama plant, 37,000 models for Canada and 6,000 units at the Greensburg, Indiana production facility, the aforementioned source wrote.

As part of its cost-cutting plan, Honda will also close its factories on December 22 and 23 and idle them for a period between four and seven days in January 2009, Ed Miller, American Honda Motor Co. Spokesman, was quoted as saying by Autonews.

Honda initially planned a total production of 1,468,000 units for the 2008 fiscal year, being now reduced to 1,293,000 cars and light trucks, Miller added. Even though production will be reduced for the next three months and several plants will be idled, no job cuts are prepared for the year ending March 31, Honda's spokesman added.

Honda is one of the first companies that acted against the global recession, with the Japanese manufacturer joining the group of global motorcycle makers which reduced production for the North American market. The announcement came out in October and was particularly addressed to North America which brought very poor motorcycle sales for all three companies.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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