November 1, 2011
Toronto, Ontario – 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 Honda’s production operations in North America. Effective November 2nd, Honda will temporarily adjust automobile production at all six Honda auto plants in Canada and the U.S. Currently, it is anticipated that this situation will require adjustments for the next several weeks.
Auto production will be at approximately 50 per cent of the original plan through November 10 and subsequent adjustments will be announced as they are determined, based on the parts supply situation.
The current production plans at all of Honda’s vehicle assembly plants in Canada and the US includes: all Saturday overtime work to be cancelled through November; a non-production day is scheduled for Friday, November 11; the on-sale date of the all-new 2012 Honda CR-V in the U.S. could be delayed slightly and the CR-V on-sale date for Canada will be announced in the near future.
In 2010, more than 92 per cent of the Honda and Acura vehicles sold in Canada were produced in North America. While the vast majority of parts and materials used to produce these vehicles are purchased from suppliers in North America, a few critical electronic parts are sourced from Thailand and other regions of the world.
Honda 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.
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.