US: Honda to lower North American production by 5,000 cars due to port disruptions image

The third largest Japanese automaker, Honda Motor announced today it would continue to adjust the vehicle production output at two North American car plants.

The Japanese automaker needs to cut production output between February 24 and March 2 because of the continued disruptions in parts supplies caused by a slowdown in activity of the US West Coast – which are in the midst of a labor dispute between shippers and dockworkers. Honda announced that it expects to lower its production count at the two assembly facilities – one in Indiana and another in Canada – during the period by about 5,000 units. The factories mostly produce the popular Civic model, with some of its variants using continually variable transmissions (CVT) that are shipped in from Japan. The automaker is currently in the midst of another production slowdown between February 16 and 23 at five North American auto factories – for an estimated loss of 20,000 autos. “The supply situation will be a little bit better next week due to the delivery of more parts by air,” commented a company spokesperson.

Meanwhile, shipping managers and union leaders for dockworkers at West Coast ports just finished a third day of negotiations mediated by the US labor secretary – dispatched there by the US President Barack Obama. The Labor Secretary Tom Perez joined the negotiations in San Francisco under pressure to speed up talks to finish the labor clash – which has resulted in months of costly disruptions in cargo traffic at the ports, taking a toll on the trans-Pacific commercial supply chain.

Via Reuters