Honda Motor Company is scaling back production at its Lincoln, Alabama plant that produces the Pilot and Odyssey. The plant plans to cut back 150-units per day, or about 12-percent beginning this April. Despite an equal jump in sales (12-percent) for the Pilot SUV in 2005 (and a refresh this year), it will be the sole target of trimming-- minivan production numbers are said to remain unaffected.
Honda vows that the slowdown won't effect employment at the plant, and calls the move an "inventory management" issue. Translation? Market demand is ebbing, and Honda's typical 45-60 day supply is ballooning. But instead of shutting down plants or resorting to incentives to move excess inventory, the automaker is trimming production.
At full tilt, Honda's Alabama plant can churn out about 300,000 vehicles per year-- the reduction is will knock this number down by about 27,000 units.
[Source: Birmingham Business Journal]