Honda to Shut Down North American Production

Steph Willems
by Steph Willems
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]

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  • DenverMike DenverMike on Mar 18, 2020

    Which automakers will keep assembling?

    • See 1 previous
    • DenverMike DenverMike on Mar 18, 2020

      @SCE to AUX I figured Tesla would try to stay open. I guess the last factory producing autos will have an unfair advantage? But lack of rebates/incentives could equalize things. I don't know, but if this thing goes on long enough, will there be price gouging? Probably Honda would be the first?

  • Sgeffe Sgeffe on Mar 18, 2020

    So Tesla, unlike Honda, didn’t shut the plant down of their own Accord!! 8-D I’m here all week..and prolly have frozen veal patties in the freezer!! I’ll go pick up some take-out this week and leave a nice tip!

  • Inside Looking Out Inside Looking Out on Mar 18, 2020

    It is a full blown panic. How economy is supposed to survive if every activity is shut down. You cannot make it up.

  • Markf Markf on Mar 18, 2020

    It's great the Left and their minions in the media will not destroy the economy and countless lives because they still can't get over Trump getting elected and possibly getting re-elected. Lefties like Bill Mahr have been praying for a recession because that would be the only possible way to defeat Trump. All their hoaxes failed. So now they will destroy the market, the economy and people's lives to get the recession they have been so desperately praying for. All over a virus that has killed less then 100 people out of a population 320 millions. In 2009 H1N1 killed 10k Americans, no one cared and the nation wasn't shut down. Then again the President had a "D" after his name