Honda cutting production again

Honda Motor Co. Ltd. is reducing production again in response to dwindling sales.

The automaker will cut another 119,000 units from its plan across all North American facilities in the remaining months of its fiscal year, ending March 31, including a 58,000-vehicle cut at its Marysville and East Liberty auto assembly plants. Honda will also make cuts at its newly opened Civic plant in Greensburg, Ind.

The company previously announced a 38,000-unit cut in October and an 18,000-unit reduction in November.

Honda’s sales for the first 11 months of the calendar year were down 6 percent to 1.34 million vehicles, from 1.42 million through the same period of 2007, including monthly declines of 24 percent in September, 25 percent in October and 32 percent in November.

The 175,000 total cut in planned production is a 12 percent drop from Honda’s original plan for the year of 1.46 million vehicles.

Ron Lietzke, spokesman for Honda of America Manufacturing Inc., the company’s U.S. production arm, said the company will achieve the cuts with a mix of non-production days and a reduction in daily production rates. He declined to disclose the new daily production rate or non-production days, but said they expect to cut between four and seven days in January.

It will be the third time this year Honda has removed production days from the Monday to Friday work schedule, following a two-day cut in May at the Marysville plant and a two-day cut scheduled for Dec. 22 and 23 at both the Marysville and East Liberty facilities.

“We continue to manage our business carefully and strategically to meet the needs of our customers while maintaining stable production and employment,” Lietzke said in a written statement. “We are confident we will remain strong and prepared when the economy strengthens and customer demand increases.”

The Marysville plant, which will reduce production by 39,000 additional vehicles through March, produces the Accord sedan and coupe, the Acura TL sedan and RDX sport utility vehicle, while East Liberty, which will cut manufacturing by 19,000 units, makes the Civic, CR-V and Element SUVs. The reductions announced in November totaled 6,000 vehicles between both plants.

Cuts also will occur at Honda’s Lincoln, Ala., assembly plant, which builds the Odyssey and Pilot; and the Alliston, Ontario facility, which makes Civics, Pilots, the Ridgeline truck and the Acura MDX.

Honda employs about 2,750 people at its engine plant in Anna. The company also operates a 600,000-square-foot distribution hub in Troy.

Original Story - BizJournal