The company says production at its U.S. facilities will have to slow in the coming weeks because of this parts issue. The reductions at American plants are scheduled to last until April 15, but may go on longer depending on when supplies come back on line. Honda says it's working with suppliers who haven't resumed production and is seeking new sources of critical parts in hopes of resuming full production soon.
Honda's UK factory is yet to see slowdowns as a result of the earthquake in Japan, but it will likely face cutbacks if things don't turn around soon.
[Source: Honda | Image: Drew Phillips/AOL]
Honda would like to express its deepest sympathy and condolences to the victims of the earthquake in Japan, and our sincere hopes for the earliest possible relief and recovery of the affected areas.
To follow is an update on the impact of the major earthquake on Honda's operations.
Honda will resume production of finished automobiles at Sayama and Suzuka Factories on Monday, 11 April 2011. This means all Honda production plants in Japan will be operational from that date.
Honda will also resume production and shipment of component parts for use in production in regions outside of Japan on Monday, 4 April, 2011.
However, as the parts supply situation remains unstable; production of component parts and vehicles at Honda plants will resume at approximately 50% of the original production plan. Honda will continue to carefully monitor the situation and manage its operations accordingly.
North American Operations
On March 30, as a result of interruptions in parts supplies from Japan in the aftermath of the earthquake and tsunami, Honda implemented a strategy of temporary adjustments that will reduce daily production levels at its U.S. and Canadian auto plants. Today, Honda announced that these temporary levels of reduced production will continue to 15 April. However, given the uncertainty of the parts supply situation, Honda anticipates additional production disruptions after that date. Honda is making every effort to keep plants operating without extensive interruptions.
The vast majority of Honda's parts and materials are sourced in North America. However, for global efficiency, a few critical parts continue to be supplied from Japan. Most of Honda's Japan-based parts suppliers have resumed production. Honda is working with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain. Teams throughout North America and global Honda continue to work diligently to overcome these temporary parts flow issues. Honda remains committed to doing what it can to minimize the impact on Honda associates, dealers and customers.
Honda of the UK Manufacturing (HUM) Operations
As a result of the recent earthquake and tsunami in Japan, along with Honda Motor's announcement of limited production in all its Japan based plants, Honda of the UK Manufacturing Ltd (HUM) has been continually assessing the impact of parts sourcing from Japan on the production plan for Swindon. Although there is no immediate impact, it is likely that the situation will have some temporary effect to production going forward.
HUM is expected to continue with normal production in the short term, however, we will continue to assess and confirm parts sourcing for production on a daily basis.
Honda appreciates everyone's understanding during these challenging times.