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Update #2: Impact of Thailand Flooding on Honda’s Automobile Operations in North America

The flooding in Thailand continues and a number of Honda suppliers there remain unable to maintain parts production. As a result, Honda will continue managing the parts supply in North America by taking the following actions:

•    Honda will continue to 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 rates will vary from plant-to-plant, but some plants will produce at rates above the previously announced 50 percent of the original plan through November 25 in Canada and through November 23 in the U.S., just prior to its Thanksgiving break).
•    Subsequent adjustments will be announced as they are determined based on the parts supply situation.  
•    In addition to the non-production day already announced for Friday, November11, a non-production day is scheduled for Friday, November18.

In 2010, 92 per cent of the Honda and Acura automobiles sold in the Canada were produced in North America.  While the vast majority of parts and materials used to produce these products 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 reestablish the flow of parts for the products made in North America.  

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.

For prior information on this topic see, October 31, 2011, Impact of Thailand Flooding on Honda’s Automobile Operations in North America.

Richard Jacobs (416) 543-6593
John Thibodeau (416) 358-2181