Honda announced today that it will cut North American production by half in November because flooding in Thailand has disrupted parts supplies.
The production cuts begin Wednesday at all six plants and will continue through Nov. 10. The automaker is also cancelling Saturday overtime f0r the month.
Honda says more cuts could be announced and that the redesigned 2012 Honda CR-V might be delayed several weeks from the original December availability. Washington DC Acura said that although most of the Hondas and Acuras sold in the U.S. are built here, there are critical electronics components shipped from overseas suppliers.
Acura Dealers CT said this setback comes as Honda moves to bring its factories back up to full production in the wake of the March earthquake and tsunami. Parts shortages from those disasters have kept vehicle supplies short for most of the year. Honda sales were down 6 percent in September against the industry’s 10 percent gain.
Automotive News reports that about 35 of Honda’s Tier 1 suppliers have been affected by flooding in Thailand. Honda’s own assembly plant has been under water since Oct. 8, and its’ expected that flood waters won’t recede for at least a month. The plant is expected to be closed for six months. Many Honda vehicles will be available at Maryland Used Cars.
Honda also announced a 55.5 percent decline in net profit to $774 million for the July through September quarter.