Honda to Cut Production in the US and Japan

Unfortunately for the automotive industry, the fight against the economic recession continues with even more cost-cutting measures. This time the anti-recession move concerns Honda, the Japanese automaker who today announced that it plans to cut production in North America and Japan by approximately 50,000 units, as part of a broader attempt to align production with market demand. According to Autonews, the North American output now totals 1.264 million vehicles for the fiscal year ending March 31.

This means the Japanese manufacturer reduced the estimated production by 13.9 percent from the initial 1.468 million units plan. On the other hand, production in Japan is lowered by 21,000 units, with the annual capacity now reduced to 1.147 million units this fiscal year.

In North America, Honda slashed production at its Ohio, Alabama and Ontario facilities, Autonews wrote quoting a press statement issued by the company. “Ohio will scale back production by 14,000 units, Alabama by 6,000 and Ontario by 9,000. The cuts will come through non-production days and the slowing of lines,” it wrote. In Japan, the only affected facility is the Yachiyo plant that currently makes minicars.

This is the second bad news of the day concerning Honda as the Japanese company earlier announced it will kill the S2000 model at the end of the year. Reasons are partially the same, with the economic recession and demand for small-displacement vehicles particularly focused on fuel economy and emissions reducing interest in Honda's popular roadster.

"The S2000 is a sports car designed by enthusiasts for enthusiasts," said John Mendel, executive vice president of American Honda Motor Co., Inc. "It raised the bar for all future roadsters, and it's already considered a classic by many Honda fans."