Honda to Cut North American Assembly as Parts Supplies From Japan Dwindle

Honda Motor Co., which makes more than 80 percent of the automobiles it sells in the U.S. at North American plants, plans to reduce output on the continent starting tomorrow as parts supplies from Japan dwindle.

Employees were told today that the Tokyo-based company will cut production temporarily by varying levels at factories in the U.S., Canada and Mexico, said Ron Lietzke, a spokesman based in Marysville, Ohio. Honda doesn’t know how long the reductions will be needed, he said.

“It’s a fluid situation,” Lietzke said. The company relies on Japan for “a small number of critical parts,” including some needed for engines and electronics, he said, without being more specific.

The magnitude-9 quake and tsunami that struck Japan on March 11, leaving more than 27,000 people dead or missing, has temporarily hobbled auto and parts production there, with Honda, Toyota Motor Corp. (7203) and Nissan Motor Co. idling most factory lines. Honda previously suspended orders from U.S. dealers for Japanese-built Honda and Acura models because of the temporary shutdown of two auto-assembly plants there.

The company declined to say how much North American production would be lost as a result of the cuts. As shifts are canceled or reduced, workers may do non-production assignments with pay, use vacation time or take time off without pay and without a penalty to their monthly attendance bonuses, Lietzke said.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at

To contact the editor responsible for this story: Kae Inoue at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.