Honda has announced that it is slashing production in North America and Japan by another 50,000 units to keep inventory levels in line with the shrinking demand. The move will bring Honda’s North American output to a total of 1.264 million vehicles for the fiscal year ending in March – 12 percent lower than the previous year and almost 14 percent lower than its initial forecast.
Honda is not planning any job cuts. However, the production cuts will hit plants in Ohio, Alabama and Ontario. Ohio will scale back about by 14,000 units, Alabama by 6,000 and Ontario by 9,000. According to Automotive News, Honda will make the cuts possible by introducing non-production days and slowing down the assembly lines.
In its hometown of Japan, Honda will cut output by 21,000 units bringing its domestic production to 1.147 million units in this fiscal year. That new total is down 12.4 percent from Honda’s target to 1.31 million units.