Honda cutting down 119,000 vehicles from production in North America

Article by Christian Andrei, on August 29, 2010

Honda Motor Co. is cutting down about 119,000 vehicles from production in its North American schedule up to March 31 of next year, which is the end of its financial year. The reductions are on top of the 56,000 vehicles Honda has already removed from its production calendar.

The most current cuts of Honda will encompass 58,000 vehicles from its two plants in Ohio; 18,000 units from its Lincoln, Ala., plant; 37,000 units from its Canadian plants, and 6,000 vehicles from its new plant in Greensburg, Ind., which was not yet in full operation.

The inventory of Honda and Acura rose 45 percent from 224,000 vehicles on September 1 to 325,000 on December 1.

The car manufacturer had a 102-day stock of Honda and Acura vehicles in inventory on December 1, up from a 30-day supply of September 1. The stock of Honda and Acura for trucks was 113 days on December 1, an increase from a 57-day supply last Sept. 1.

The carmaker will adapt daily yield at its assembly and other facilities. Honda also stop production on December 22 and 23, and do so for four to seven days the following month, said Ed Miller, a spokesman for American Honda Motor Co.

Honda had intended to manufacture 1,468,000 vehicles up to March 31 until the sales hit rock bottom in the fourth quarter, Miller said. The fresh production goal for the financial year is 1,293,000 cars and light trucks, the fourth-highest production year of the 27 years of Honda's North America manufacturing.

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