Monday, April 18, 2011

Honda (HMC) North American Factory Slowdowns Extended

Honda Motor Co. (NYSE:HMC) announced late Friday it will extend the slowdown for its factories in North America by at least two more weeks, with early May cited as the earliest they'll resume prior production levels.

The cuts will be through at least through May 6, and Honda said there is no doubt there will be more cutbacks after that.

Shortages of vehicles made by Honda will come very quickly, as production is being slashed by up to 50 percent at the plants. Expectations are production will take a least several months to go back to pre-earthquake levels.

Honda employs about 21,000 workers in North America, none of which will be laid off the company says.

The majority of parts for its vehicles are produced in North America, but important parts are made in Japan, and those will keep production at lower levels for months.

Honda closed Friday at $35.96, gaining $0.70, or 1.99 percent.

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