COLUMBUS (WCMH) — Honda will suspend production at all of its automobile assembly plants in North America for six days beginning March 23. The company said the shut down is “due to an anticipated decline in market demand related to the economic impact of the COVID-19 pandemic.”
Honda said the suspension will reduce production by approximately 40,000 vehicles and that employees will continue to receive full pay.
The company released the following statement:
“As the market impact of the fast-changing COVID-19 situation evolves, Honda will continue to evaluate conditions and make additional adjustments as necessary. In undertaking this production adjustment, Honda is continuing to manage its business carefully through a measured approach to sales that aligns production with market demand.”
At Chapman Ford in Marysville, owner Joe Chapman said the dealership was off to a great start in 2020. But he has seen a noticeable change in recent days and anticipates some tough times ahead. “I have promised my staff, I’m not laying anyone off,” Chapman said. “I will not do that. I will go broke first.”
Chapman says it’s not just a demand problem. The auto parts supply chain has also been interrupted by the pandemic especially parts that would otherwise be coming from China. “Honda shutting down for six days is, I’m surprised it’s so short of a time,” Chapman said. “I’m wondering if my parts are going to show up from Ford. I’m sure GM dealers are experiencing the same thing”
In the company statement, Honda said it will “utilize this time to continue deep cleaning of its production facilities and common areas to further protect associates upon their return to the plants. This production adjustment will also allow Honda associates to better prepare and adjust family plans in relation to regional directives to close schools to stop the spread of the COVID-19 virus. This will enable working parents to determine how best to manage the needs of children staying home from school and other required lifestyle adjustments.”
The affected auto plants include: Ohio: Marysville Auto Plant East Liberty Auto Plant Performance Manufacturing Center Indiana: Honda Manufacturing of Indiana Alabama: Honda Manufacturing of Alabama Canada: Honda of Canada Mfg. – Plants 1 & 2 Mexico: Honda de Mexico – Celaya Auto Plant.
The affected powertrain plants include: Honda Transmission Manufacturing of America (Ohio) Honda of America Mfg. Anna Engine Plant (Ohio) Honda Precision Parts of Georgia (Georgia) Honda of Canada Mfg. Engine Plant (Canada) Honda de Mexico – Celaya Transmission Plant (Mexico).
