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Dayton
Business Journal...
Honda shutdowns may
last through June
by Dan Eaton, DBJ Contributor
Friday, April 8, 2011
Honda Motor Co. may face North America production delays of two to
three months, a top official said Thursday.
John Mendel, American Honda Motor Co. executive vice president, told
trade publication Automotive News the current time line for temporary
shutdowns is between 60 and 90 days.
The automaker, which has its North American production headquarters in
Marysville, began idling plants for short periods of time March 30 to
conserve parts.
Since the March 11 earthquake and tsunami in Japan, Honda (NYSE: HMC)
and other automakers have been hindered by damage both to their
facilities and supplier operations. Rolling blackouts and damaged rail
lines and highways continue to slow and stop vehicle and part
production and shipping in the Asian nation.
Honda has more than 13,000 employees in Ohio. In the Dayton region,
that includes 2,400 workers at its Anna engine plant, 1,050 workers at
its Logan County transmission plant and 225 employees in Troy at a
consolidation facility.
Honda is not alone in facing challenges in the aftermath of the massive
earthquake.
Toyota Motor Corp. (NYSE: TM) faces temporary production stoppages in
North America.
The same goes for General Motors (NYSE: GM), which has said parts
supply shortages are forcing it to reduce production at some of its
North American facilities as well.
Some local auto dealers may be forced to deliver bad news to customers
as Ford Motor Co. (NYSE: F) said it is facing a possible shortage of
black and red colored vehicles — especially trucks and SUVs — because a
paint ingredient used in those colors was manufactured in Japan and is
in short supply.
Production cuts by automakers will likely be felt locally as it has
operations in Troy, and the Dayton-area has dozens of suppliers to the
auto industry. West Chester-based AK Steel Holding (NYSE: AKS) sells
steel to many of the big automakers.
Other suppliers to the auto industry include Johnson Controls Inc.
(NYSE: JCI), Magna International Inc. (NYSE: MGA) and Lear Corp. (NYSE:
LEA).
Read it with links at Dayton Business Journal
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