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Friday, April 15, 2011

Honda Extends North American Factory Slowdown By 2 Weeks

Honda Extends North American Factory Slowdown By 2 Weeks



Apr 15, 2011

Honda Motor Co (NYSE:HMC) said it will slow down production at its 11 North American factories into at least early May because of the ongoing parts shortage from Japanese earthquake-damaged factories.

The company said Friday it is extending the production cuts through at least May 6th, and it expects more disruptions beyond that.

The slowdowns could reduce output in the period by as much as 50%, and are likely to cause a shortage of Honda vehicles in a matter of weeks.

Honda's Japanese factories are running at half capacity, and the President of the company said it could take months to return to full production.

The company said none of its 21,000 North American factory workers would be laid off.

Shares of Honda Motor are trading up 1.73% at $35.87.

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