Following the massive March 11 earthquake in Japan, Honda reduced output up to half at most of its North American assembly plants on March 29, running shifts for four hours instead of eight. Today, Honda announced that temporary levels of reduced production will be extended one week through the week of April 18-22.
“We anticipate that additional production adjustments will continue after that date,” Honda said in a statement. “Honda is making every effort to return to full production as soon as possible. At the same time, we remain focused on minimizing the impact to associates and their families. Honda plans no layoffs at any of its North American facilities.”
The Honda Fit, Insight, CR-Z, Civic Hybrid, Acura TSX and Acura RL are produced in Japan for the North American market. Honda produces a small percentage of CR-Vs in Japan for the U.S. as well.
As far as Japanese production goes, Honda said that it will resume limited production of finished automobiles at 50 percent of the original production plan on April 11, at the Sayama Plant at Saitama Factory (Sayama, Saitama) and the Suzuka Factory (Suzuka, Mie), which will bring all Honda auto plants in Japan back into production. The two manufacturing facilities have been shut down since the earthquake and tsunami struck Japan on March 11.
Hit the jump for additional updates on Honda’s Japanese production.
- Honda Motor began limited production of component parts for North American plants Monday, April 4 at several Honda plants in Japan. However, since the component situation remains fluid, production of parts resumed at approximately 50% of the original production plan. Honda will carefully manage the situation and manage its operation accordingly.
- Honda will continue to make decisions based on the status of the recovery of Japanese society as a whole as well as the supply of parts. There are still many questions relating to the supply of parts manufactured by other suppliers in Japan and shipped directly from suppliers in Japan to Honda’s suppliers in North America.
- While most of our Japan-based suppliers have resumed production, there are a few suppliers that have yet to resolve the challenge to resume their production. In those cases, Honda is working with its suppliers to help reestablish their operations, while evaluating other possible sources for those parts in the supply chain. Please understand that Honda is making every effort to work toward a full recovery as quickly as possible. We appreciate everyone’s understanding during these challenging times.
- Honda resumed motorcycle and power products production at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto) on Monday, March 28.
Recovery of Operations in the Tochigi Area
- The impact of the earthquake was more severe at the Tochigi Factory (Moka, Tochigi), however, repair and inspection activities were completed for almost all facilities and equipment.
- At other operations, including the Automobile R&D Center (Tochigi) of Honda R&D Co., Ltd. and Honda Engineering Co., Ltd., associates who will work on the restoration started returning to work. However, based on the expectation that it will take several months until the complete recovery of these facilities, Honda has temporarily transferred some functions such as automobile product development, development of manufacturing technologies and procurement to Honda operations in other locations such as Sayama, Suzuka, and Wako.
- Honda is cooperating with electricity conservation efforts and rolling blackout measures, prioritizing the relief and recovery of affected areas.
– By: Omar Rana