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Dayton Business Journal...
Honda faces production issues in U.S.
By Dan Eaton, DBJ Contributor
Monday, March 28, 2011
Honda Motor Co.’s plants in North America are expected to face
temporary production interruptions after April 1 resulting from the
Japan earthquake and tsunami.
Honda (NYSE: HMC) confirmed that its facilities in the U.S., Canada and
Mexico likely will face the short-term interruptions because of parts
shortages. Production in Japan remains halted until next week.
Specifics about those breaks, including the length and nature, were not
provided. The full impact remains unknown.
“Most of our Japan-based parts suppliers have either resumed production
or are ready to restart their operations,” the company said in a
statement. “However, there are a few suppliers which have yet to
resolve the challenge to resume their production.”
Teams in North America and elsewhere in the company’s global operations
are working to solve the parts flow issues.
Industry watchers said production could be shifted from operations in
Japan to other sites in the world, though a Honda spokesman said the
immediate focus remains on reestablishing work in Japan.
Toyota Motor Corp. (NYSE: TM) recently told workers that production
cuts at North America plants are likely.
Production cuts at Toyota — which bases its Toyota Motor Engineering
and Manufacturing North America headquarters in Erlanger, Ky. — will
likely be felt locally as it has operations in Troy, with dozens of
suppliers in the Dayton region. The same goes for General Motors (NYSE:
GM), which has said parts supply shortages are forcing it to reduce
production at some of its North American facilities as well.
Some local auto dealers may be forced to deliver bad news to customers
as Ford Motor Co. (NYSE: F) says it is facing a possible shortage of
black and red colored vehicles — especially trucks and SUVs — because a
paint ingredient used in those colors was manufactured in Japan and is
in short supply.
Read it with links at the Dayton Business Journal
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