Corporate / North American Operations / Manufacturing / Production
Statement by American Honda Motor Co., Inc Re: Impact of Thailand Flooding on Honda's Automobile Operations in North America
The Honda family of companies in North America would like to express its deepest sympathy and concern for the victims of the devastating floods in Thailand and the sincere hope for the earliest possible relief and recovery from the damaged areas.
As the flooding in Thailand continues, a number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to our production operations in North America. To better manage the available parts supply in North America and globally, effective November 2, Honda will take the following actions:
- Honda will temporarily adjust automobile production at all six Honda auto plants in the U.S. and Canada. Currently, it is anticipated that this situation will require adjustments for the next several weeks.
- Auto production will be at approximately 50% of the original plan through Nov. 10. Subsequent adjustments will be announced as they are determined based on the parts supply situation.
- All Saturday overtime work will be canceled through November.
- A non-production day is scheduled for Friday, Nov. 11.
- The December on-sale date of the all-new 2012 Honda CR-V could potentially be delayed by several weeks. The on-sale date will be announced in the near future.
In 2010, 87 percent of the Honda and Acura automobiles sold in the United States were produced in North America. While the vast majority of parts and materials used to produce these products are purchased from suppliers in North America, a few critical electronic parts are sourced from Thailand and other regions of the world. Honda is working closely with its suppliers in Thailand and throughout its global network to reestablish the flow of parts for the products made in North America.
As in the past, Honda remains focused on minimizing the impact to its associates and their families and plans no layoffs at any of its North American facilities. Non-production days will continue to be treated as “no pay, no penalty,” meaning Honda associates can report to work, use a vacation day, or take the day off without compensation or penalty.
Honda deeply regrets any inconvenience this may cause to its customers, and is working closely with its suppliers and operations throughout the world to overcome this situation.
Contacts: Jeffrey A. Smith in Los Angeles, 310-781-5442, or Ed Miller in Detroit, 313-202-3150