Honda Canada slowdown blamed on Thai flooding
Honda's assembly plants in Canada will be part of a dramatic international slowdown by the Japanese automaker, which is suffering from a parts shortage due to flooding in Thailand.
Starting on Wednesday, Honda's production from its six North American factories will be cut to 50 per cent of the original plan for about a week.
Honda doesn't plan any North American layoffs but it will cancel all Saturday overtime work through November.
The company said it will also schedule a non-production day Nov. 11, which is Remembrance Day in Canada.
On Honda's non-production days, employees can either report to work, use a vacation day or take the day off without pay or penalty.
The company said more than 92 per cent of the vehicles it sells in Canada were made in North America but a small number of parts come from Thailand.
Japan's tsunami affected production earlier
"As the flooding in Thailand continues, a number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to our production operations in North America," the No. 2 Japanese carmaker said in a statement Monday.
It's the second time this year that natural disasters abroad have affected Honda's North American manufacturing plants.
The earthquake and tsunami that devastated parts of northern Japan in early March had a major impact on several companies, particularly Honda and Toyota, and contributed to a slowdown of the Canadian and American economies in the second quarter.
In Canada, Honda has an engine plant and two assembly plants that employ about 4,600 people in the central Ontario community of Alliston, near Barrie.
The Honda Canada plants produce the Acura CSX Sedan, Honda Civics and other vehicles, including sport utilities.