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Honda Slashes North American Production due to West Coast Port Delays

Production loss of 20,000 and rising.

Kelly Pleskot
Feb 23, 2015

Amid labor disputes at ports across the West Coast, Honda said that a shortage of parts shipped here from overseas will force additional production losses at its factories next week.

Honda had already cut output at five of its North American factories from February 16-23, resulting in a production loss of 20,000 cars. The situation is expected to improve next week as Honda receives more parts by air, although production won't be back to full force. Through March 2, Honda is curtailing output at two factories --one in Indiana and another in Canada -- for an expected loss of another 5000 cars.

About 95 percent of the cars Honda and Acura sell in the U.S. are built in North America, but many parts are sourced globally. The plants that will shut down next week are relying on continuously variable transmissions shipped from Japan to build many Civic cars, reports Reuters.

For now, there's no telling when a settlement will be reached in the labor dispute. The International Longshore and Warehouse Union has been trying to negotiate a deal for nine months with shipping executives, and the dispute has led to an increasing amount of congestion at some of the nation's busiest ports.

Source: Reuters 1, 2

Honda CVT Productiton at Transmission plant Photo 2/2   |   honda-cvt-productiton-at-transmission-plant
By Kelly Pleskot
344 Articles

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