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Impact of Thailand Flooding on Honda’s Automobile Operations in North America


MARKHAM 10/31/2011


The Honda family of companies in North America would like to express its deepest sympathy and concern for the victims of the devastating floods in Thailand and the sincere hope for the earliest possible relief and recovery from the damaged areas.


As the flooding in Thailand continues, a number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to our production operations in North America. To better manage the available parts supply in North America and globally, effective November 2, Honda will take the following actions:


Honda will temporarily adjust automobile production at all six Honda auto plants in Canada and the U.S. Currently, it is anticipated that this situation will require adjustments for the next several weeks.


Auto production will be at approximately 50% of the original plan through November 10.
Subsequent adjustments will be announced as they are determined, based on the parts supply situation.


The current production plans at all of Honda’s vehicle assembly plants in Canada and the US includes:
• All Saturday overtime work to be cancelled through November
• A non-production day is scheduled for Friday, November 11


Note: The on-sale date of the all-new 2012 Honda CR-V could be delayed slightly. The CR-V on-sale date for Canada will be announced in the near future.


In 2010, more than 92 per cent of the Honda and Acura vehicles sold in Canada were produced in North America. While the vast majority of parts and materials used to produce these vehicles are purchased from suppliers in North America, a few critical electronic parts are sourced from Thailand and other regions of the world. Honda is working closely with its suppliers in Thailand and throughout its global network to re-establish the flow of parts for the vehicles made in North America.


As in the past, Honda remains focused on minimizing the impact to its associates and their families, and plans no layoffs at any of its North American facilities. Non-production days will continue to be treated as “no pay, no penalty,” meaning Honda associates can report to work, use a vacation day or take the day off without compensation or penalty.


Honda deeply regrets any inconvenience this may cause to its customers, and is working closely with its suppliers and operations throughout the world to overcome this situation.


Contacts: Richard Jacobs (416) 543-6592 
John Thibodeau at Media Profile (416) 358-2181