IBJNews

Honda to cut production of new Civic, other models

Back to TopCommentsE-mailPrintBookmark and Share

Honda Motor Co. warned U.S. dealers Monday that it will run short of popular models such as the Civic compact later this summer because of parts shortages caused by Japan's earthquake.

It said normal production may not return until the end of the year.

Honda will significantly cut production of the new 2012 Civic, the sixth most popular car in the U.S., through the summer, if not longer.

In addition, the 2012 version of the CR-V small SUV will be delayed by at least a month this fall. To make up for shortages, Honda will keep making the 2011 version.

Both vehicles are made in North America, but like other automakers, Honda must cut production because it's running low on Japanese imports of chips, sensors and other parts. Japanese plants that supply them were damaged by the March 11 earthquake or hampered by power outages.

Honda employs about 1,000 workers at its Greensburg plant in Indiana, about 50 miles southeast of Indianapolis in Decatur County.




Nearly every major auto company has had to idle factories due to shortages. Honda, Toyota Motor Corp. and Nissan Motor Co. have been hit particularly hard. Supply companies are scrambling to build their parts elsewhere, but setting up alternate factories takes months.

Honda, which makes 80 percent of the vehicles sold in North American at plants in the region, also said it will be able to import only a limited number of Japan-built cars in the U.S. That means dealers won't be able to order the Fit subcompact, and the CR-Z, Insight and Civic gas-electric hybrids until later in the year.

"Our goal remains to normalize overall production sometime around the end of the year," John Mendel, executive vice president of sales for American Honda, wrote in the dealer memo.

Shortages also will cut supply of some Acuras, Honda's luxury cars. Dealers won't be able to order the TSX small car and wagon and the RL large sedan until later in the year, the memo said.

The shortages come at a time when gasoline in the U.S. is hitting $4 a gallon in 13 states. That normally drives up sales of fuel-efficient models from Honda and Toyota.

Honda spokeswoman Christina Ra conceded that the production cuts could send some buyers to other brands, but she said some buyers might be willing to wait.

"We can certainly beef up production once things get back to normal," she said.

Honda sold nearly 67,000 Civics through March, up 21 percent from last year. Sales of the CR-V, which ranks No. 11 in U.S. sales, were up 58 percent to just over 57,000 through March.

Some industry analysts think production cuts by Japanese automakers could help General Motors, Ford, Chrysler, Hyundai and other automakers that have not been hit as hard by parts shortages.

GM, Ford and Hyundai have far better entries in the compact car market than in past years, and buyers who would automatically have bought a Honda or Toyota may end up trying other brands.

Mendel's memo said Honda would have to stop taking orders for some paint colors due to lack of a certain shiny pigment made only in Japan. Ra said the colors are types of red, blue, dark gray and white.

Last month Honda said it would slow down production at its 10 U.S. and Canadian auto factories into at least early May because of shortages. The company still says none of its 21,000 North American factory workers will be laid off. Toyota has made similar moves in North America.

Separately, a Toyota engine factory in Huntsville, Ala., remains closed for lack of electricity. Alabama was devastated by tornadoes on Wednesday, and company spokesman Mike Goss said Toyota isn't sure when the plant will reopen.

The plant makes engines for the Tundra and Tacoma pickups, and the Sequoia SUV.

Goss said factories that assemble the trucks have not been affected so far. The pickups are made in San Antonio, Texas, while the Sequoia is made in Indiana at a plant in Princeton.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Uh, sorry Johnnie, but you are incorrect. Despite the assertions by yourself and various defenders and captains, sports attendance is NOT off significantly at most sporting events in the US. Variances in attendance has been in the range of single digits, both + & - for years now. MLB has had most of its best overall attendance nubers in the last decade, and that trend has been consistent for most major sporting events. The number one issue cited by most fans when asked about attendance is the overall cost of attending. The presence of HD and big screen televisions in home doesn't even register, as a factor for not attending an event. VALUE in the product is the key, and apparently is something lacking in the current ICS. What other explanation is there when with what is routinely touted as the "best" racing on the planet, fans are staying away in DROVES. A "close" title battle into the last event at Fontana, with the "cars and stars" of the ICS, and who showed up? MAYBE 8K. Sorry, but HD TV isn't to blame for that kind of fan apathy.

  2. Do you need finance to establish your business ? Are you interested in getting a loan at 3% from our private company? If so please Email: suntrust_oil@blumail.org

  3. If she was worth the $ the public outcry over direct tv dropping them would have kept them on their dishes as we have seen with other companies. I too quit watching channel 13 after she showed up since I left channel 8 because of her all show rather than production results. When Randy on 8 corrected her she had a big head and incorrectly challenged his correction for pronunciation of a city. Other antics while she matures was too much for me with her very inaccurate forecasts. All the forecasters were predicting rain until Thursday except Chris. They predicted sunny on Thursday but instead of rain until Thursday upon which the sun would finally make it out in full glory Chris was right on the money just as I too predicted looking at the radar on weather.gov. One thing I love about Angela is the fear you can see in her every time it thunders in the winter. It far exceeds the entertainment value of her body language (high heel noise drags, depression, etc) when her forecasts are so incorrect. Her hair stands on end, you have to see it!!!

  4. Good Day, Apply For A Loan I am Mr Fernadez Antonio, a private Loan lender and a cooperate financial for real estate and any kinds of business financing. I also offer Loans to individuals, Firms and cooperate bodies at 3% interest rate We offer any kind of loans. email us via fernadezloaninvest@outlook.com LOAN APPLICATION FORM First name:......................... Middle name:......................... Last name:........................................ Date of birth (yyyy-mm-dd):....................... Gender:........................................... Marital status:................................... Total Amount Needed............................... Loan Duration.................................... Address:.......................................... City:............................................. State/province:................................... Zip/postal code:.................................. Country:.......................................... Phone:............................................ Fax:.............................................. Mobile/cellular:.................................. Monthly Income.................................... Occupation:....................................... Best Regard, Mr Fernadez Antonio.

  5. i will love to share my testimony to you all the people in world i got married to my husband about 2 year ago we start having problems at home like we stop sleeping on the same bed,fighting about little things he always comes home late at night,drinking too much and sleeping with other women out side i have never love any man in my life except him. he is the father of my child and i don't want to loose him because we have worked so hard together to become what we are and have today .few month ago he now decided to live me and the kid,being a single mother can be hard sometimes and so i have nobody to turn to and i was heart broken.i called my mom and explain every thing to her,my mother told me about DR.okoro how he helped her solve the problem between her and my dad i was surprise about it because they have been without each other for three and a half years and it was like a miracle how they came back to each other. i was directed to DR. okoro on his email:okorospell@gmail.com and explain everything to him,so he promise me not to worry that he will cast a spell and make things come back to how we where so much in love again and that it was another female spirit that was controlling my husband he told me that my problem will be solved within two days if i believe i said OK So he cast a spell for me and after two days my love came back asking me to forgive him i Am so happy now. so that why i decided to share my experience with every body that have such problem contact Dr okoro the great spell caster on his email addresses spellcasterforlove@outlook.com

ADVERTISEMENT