Honda to Drastically Cut North American Production Due to Flooding in Thailand
The recent flooding in Thailand has forced Honda, alongside Toyota, to reveal that its North American production will be cut by a whopping 50 percent. Honda’s facilities in Thailand have been damaged by rising waters, disrupting the flow of parts. All six of Honda’s plants in North America are cutting their overtimes and scheduled to close on certain dates in November. Even though 80-90 percent of Hondas sold in America are built here, critical components such as electronics are sourced from overseas. Further delays have yet to be announced, but Honda expects these delays to last until mid-December. This is especially bad news for the new CR-V, which is due to go on sale by the end of the year. Reports from Japan indicate that its December launch may be delayed by a few weeks—and whether Honda, which is just starting to resume production levels after the Japanese tsunami in March, can maintain its sales momentum with a new launch and a parts delay waits to be seen.Source: Automotive News
Hey, don’t say Honda doesn’t keep their fingers firmly on the pulse of the automotive zeitgeist.