Honda to cut US, Canada production by half
Monday, October 31, 2011
DETROIT (AP) — Parts shortages from three months of catastrophic flooding in Thailand have forced Honda to cut U.S. and Canadian factory production by 50 percent for the second time this year, the automaker said Monday.
The cuts, which come just as Honda was recovering from the March 11 earthquake and tsunami in Japan, will run from Wednesday at least through Nov. 10 as Honda tries to find alternate sources for microprocessors made in Thailand.
The flooding, which began in July and has forced many auto parts plants to close, also affected Toyota Motor Co., which cut overtime for production in North America through the end of this week.
Honda Motor Co.’s announcement comes the same day the Japanese automaker announced that its quarterly profit tumbled 56 percent, battered by the strong yen and production disruptions from the March tsunami disaster.
The automaker, which makes the Accord and Civic sedans, said net profit for the July-September fiscal second quarter fell to $788 million.
Quarterly sales sank 16.3 percent from a year earlier to $24.6 billion.