Honda Resumes Auto and Motorcycle Production in Japan at 50% Capacity, More Earthquake Caused Interruptions Coming

AutoInformed.com

Damage to the Honda R&D Center where new vehicles are developed could have longer term negative effects on Honda than lost production, which can be made up.

Honda Motor Co. today said it will resume limited production of automobiles at approximately 50% of the original production plan on 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. Sayama and Suzuka manufacturing plants have been shut down since the earthquake and tsunami struck on April 11.

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 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.

Honda said in a statement that it 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,” Honda said.

Honda resumed motorcycle and power products production at Kumamoto Factory (Ozu-machi, Kikuchi-gun, Kumamoto) on Monday, March 28.

The impact of the earthquake was more severe at the Tochigi Factory (Moka, Tochigi); however, repair and inspection activities have been completed for most 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, Honda said it will take several months for 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 North American Operations

Honda announced today that temporary levels of reduced production will be extended one week through the week of April 18-22. Honda anticipates that additional production adjustments will continue after that date. Honda plans no layoffs at any of its North American facilities.

Honda began to implement a strategy of temporary adjustments that reduce daily production levels at its U.S. and Canadian auto plants on March 30, as a result of interruptions in parts supplies from Japan in the aftermath of the earthquake and tsunami. Honda is making every effort to keep plants operating without extensive interruptions.

The vast majority of Honda’s parts and materials are sourced in North America. “However, for global efficiency, a few critical parts continue to be supplied from Japan.” Most of Honda’s Japan-based parts suppliers have resumed production. Honda is working with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain. Teams throughout North America and global Honda continue to work diligently to overcome these temporary parts flow issues.

Honda North American Built Vehicles

  • Marysville, Ohio:    Honda Accord, Honda Accord Coupe, Acura TL, Acura RDX
  • East Liberty, Ohio: Honda CR-V, Honda Element, Honda Accord Crosstour
  • Greensburg, Ind.:   Honda Civic Sedan, Honda Civic GX natural gas
  • Lincoln, Alabama:   Honda Odyssey, Honda Pilot, Honda Ridgeline
  • Alliston, Ontario:    Honda Civic (Sedan, Coupe, Si) Acura MDX, Acura ZDX, Acura CSX (The CSX is sold only in Canada)
  • El Salto, Mexico:    Honda CR-V
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