Honda plants in North America could be operating at well below capacity as a shortage of parts from Japan threatens to cripple the automaker’s output for as long as 90 days.
Speaking with Automotive News, Honda’s executive Vice-President John Mendel estimated a 60 to 90 day slowdown, with 30 days being an optimistic forecast. Honda has already cut production in half at 5 of its 6 North American plants due to a parts shortage, and 90 percent of Hondas sold in North America are assembled here. While 600 of its 710 suppliers are based in North America, a single missing part can result in a production stoppage.
Mendel highlighted the dire situation in Japan, stating ”In some places, they are still recovering bodies. And even if you have a warehouse full of finished microchips, the roads are ruined, and you are in the radiation zone. What are you going to do?” Honda is estimated to have a 47 day supply of vehicles, and the company is also monitoring parts order by dealers to make sure that hoarding and other shady practices do not occur.
Honda currently imports the Fit and CR-Z from Japan.
[Source: Automotive News]