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Dayton Business Journal...
Honda forecasts
production delays through June
by Dan Eaton, DBJ Contributor
Monday, April 25, 2011
Honda Motor Co. Ltd. set a production record in fiscal 2011, but the
automaker likely won’t be able to repeat that performance this year
because of continuing problems in its earthquake-ravaged homeland.
The Japanese company said Monday it produced 3.6 million vehicles in
the year ended March 31, a company record, but that production in that
final month was hurt by the March 11 earthquake and tsunami in Japan
and the resulting disruptions in the country. March production in Japan
fell 63 percent to 34,754 vehicles versus the same period last year.
Supply line problems and other issues led to a 10.5 percent drop in
North American production to 113,060 vehicles in the month, while
worldwide production was down 19.2 percent to 282,254 vehicles.
Those declines are going to get steeper in coming months as Honda and
its fellow Japan-based automakers continue to deal with the impact of
the disaster on its worldwide operations and the operations of its
suppliers. The automakers are working to reestablish full-time
operations at their facilities and stabilize supplier operations.
Honda (NYSE:HMC) said production in Japan will remain at 50 percent of
capacity through the end of June. Specifics beyond June still are being
determined, but normalization isn’t expected until closer to the end of
the year.
Production outside Japan also remains fluid. The most recent North
American production update has delays lasting through May 6, but John
Mendel, American Honda Motor Co. executive vice president, previously
said the North American stoppages could last at least theee months.
If competitor Toyota Motor Corp. is any indication, delays could be
longer. Toyota (NYSE:TM) said Friday that Japan production could begin
increasing by July, with North American work to pick back up in August
in hope of normal production worldwide by November or December.
The company’s plants in Japan are operating at 50 percent capacity,
while its North American production is at 30 percent.
The automaker released its March production figures Monday as well,
with Japan down 63 percent to 129,491 and worldwide production down 30
percent to 542,465 vehicles. The company did not break out U.S.
production. Toyota said as many as 150 suppliers have been affected by
the disaster, mainly in electronics, rubber and paint.
Nissan Motor Co. Ltd. Monday reported a 52 percent decrease in
production in Japan to 47,590 for March, but U.S. production was up 22
percent to 59,613 vehicles and global production was up 9 percent to
382,704 units.
Honda has more than 13,000 employees in Ohio. In the Dayton region,
that includes 2,400 workers at its Anna engine plant, 1,050 workers at
its Logan County transmission plant and 225 employees in Troy at a
consolidation facility.
The Japan disaster also has hit other automakers such as General Motors
and Ford Motor Co. , all of which have had to slow or temporarily halt
production at some facilities.
Production cuts by automakers will likely be felt locally as the
Dayton-area has dozens of suppliers to the auto industry. West
Chester-based AK Steel Holding (NYSE: AKS) sells steel to many of the
big automakers.
Other suppliers to the auto industry include Johnson Controls Inc.
(NYSE: JCI), Magna International Inc. (NYSE: MGA) and Lear Corp. (NYSE:
LEA).
Read it with links at Dayton Business Journal
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