Honda to Shut Down North American Production

Anticipating a sharp drop in demand for its products, Honda said Wednesday that it will shut down all vehicle assembly and powertrain production in the U.S., Canada, and Mexico starting March 23rd.

The length of the continent-wide shutdown, pegged at 6 days, seems somewhat optimistic given what we’ve seen in other regions hit hard by the coronavirus pandemic, though one supposes the automaker has to start somewhere.

As retail and hospitality workers find themselves temporarily jobless across the continent, Honda employees can at least look forward to a paycheck. The automaker claims it “will continue full pay for all of its associates” — a complement of workers numbering roughly 27,600 across eight assembly plants and five powertrain facilities.

“Honda will reduce production by approximately 40,000 vehicles during these six days,” the automaker stated, adding that the downtime will be used to give plants a thorough cleaning.

“This production adjustment also will allow Honda associates to better prepare and adjust family plans in relation to regional directives to close schools to stop the spread of the COVID-19 virus. This will enable working parents to determine how best to manage the needs of children staying home from school and other required lifestyle adjustments.”

With the near future never hazier, automakers can only guess by what degree sales will decline in the coming months. No one knows how long the quarantines will last, or just how bad the pandemic will be. Last week, Morgan Stanley predicted a 9-percent sales drop in the U.S. this year — a far greater decline than what analysts foresaw prior to the virus’ arrival.

[Image: Honda]