Honda denies nuclear mission for robot

There was a report that Honda was going to outfit ASIMO with a few upgrades to help out in the disaster in Japan;

http://gizmodo.com/5830373/hondas-most-adorable-robot-is-about-to-go-nuclear

TOKYO — Japan's Honda has denied a press report it is hoping to retool its humanoid robot ASIMO to enable it to join emergency work inside the crippled Fukushima Daiichi nuclear power plant.



The Japanese newspaper Asahi Shimbun said in its Friday evening edition that Honda was aiming to upgrade the robot's upper body functions so that it can move its arms as smoothly as a human being.



US Honda spokeswoman Lauren Ebner said the report was "speculation."



"Although Honda hopes that ASIMO will someday be a helper to people, at this point the robot is solely a research and design project," Ebner said in a statement to AFP.



No official at Honda's head office in Tokyo was available for comment on Friday.



The current ASIMO, introduced in 2000 and resembling a small astronaut, stands 130 centimetres (4 feet 3 inches) tall. The bipedal bot can walk, run, carry trays, push carts and shake hands with people.



Asahi said that to work in the debris-strewn nuclear plant, ASIMO would likely be modified and fitted with tyres or caterpillar tracks.



The Fukushima plant has been leaking radiation from its reactors since its cooling systems were knocked out by the March 11 earthquake and tsunami. At some hotspots radiation is high enough to be lethal to humans.



Robots have already been used inside the plant to take video footage, including the US-made PackBot and Japanese-made Quince crawler robots.



Source;

http://www.google.com/hostednews/afp/article/ALeqM5g7m9qLNugC96cUAu4BGNJPVA8Dxg?docId=CNG.1cc437d7d61fc59f3394a87a1a28abbb.171

Honda denies nuclear mission for robot

There was a report that Honda was going to outfit ASIMO with a few upgrades to help out in the disaster in Japan;

http://gizmodo.com/5830373/hondas-most-adorable-robot-is-about-to-go-nuclear

TOKYO — Japan's Honda has denied a press report it is hoping to retool its humanoid robot ASIMO to enable it to join emergency work inside the crippled Fukushima Daiichi nuclear power plant.



The Japanese newspaper Asahi Shimbun said in its Friday evening edition that Honda was aiming to upgrade the robot's upper body functions so that it can move its arms as smoothly as a human being.



US Honda spokeswoman Lauren Ebner said the report was "speculation."



"Although Honda hopes that ASIMO will someday be a helper to people, at this point the robot is solely a research and design project," Ebner said in a statement to AFP.



No official at Honda's head office in Tokyo was available for comment on Friday.



The current ASIMO, introduced in 2000 and resembling a small astronaut, stands 130 centimetres (4 feet 3 inches) tall. The bipedal bot can walk, run, carry trays, push carts and shake hands with people.



Asahi said that to work in the debris-strewn nuclear plant, ASIMO would likely be modified and fitted with tyres or caterpillar tracks.



The Fukushima plant has been leaking radiation from its reactors since its cooling systems were knocked out by the March 11 earthquake and tsunami. At some hotspots radiation is high enough to be lethal to humans.



Robots have already been used inside the plant to take video footage, including the US-made PackBot and Japanese-made Quince crawler robots.



Source;

http://www.google.com/hostednews/afp/article/ALeqM5g7m9qLNugC96cUAu4BGNJPVA8Dxg?docId=CNG.1cc437d7d61fc59f3394a87a1a28abbb.171

Honda and Toyota: Getting Back on Track

This year hasn’t been the kindest to Japanese automakers Honda and Toyota. The devastation wrought by March’s earthquake and Tsunami in Japan, resulted in severe disruptions to their supply chains, causing dealer inventories to run low and other automakers to gain ground in sales.



However, after a dismal July, there are signs that both Honda and Toyota are gaining momentum; supply from Japan has improved, while factories in North America are running in overdrive in an effort to boost vehicle inventory to more ‘normal’ levels.



Even though rivals, including Detroit’s big three, have gained ground this year as a result of problems facing the Japanese duo, most seem to view Honda and Toyota’s improving fortunes quite favorably.



Don Johnson, General Motors’ US sales head, believes that more Hondas and Toyotas on dealer lots will help stimulate overall growth in new car sales, bringing back buyers who’ve been sitting on the fence. ”A lot of brand-loyal customers have chosen to sit on the sidelines until selection and price improve,” he says. “They will be coming back into the market.”



That said, it is likely to be some time before inventory levels reach pre-March totals. Randy Pflughaupt, group vice president of sales administration for Toyota, believes it will be 2012 before the automaker achieves year-over-year sales increases; Honda meanwhile, is currently running at around 95 percent of normal production in Japan, with full inventory achieved on all US product lines bar the Civic which traditionally is one of it’s most popular models.



According to a number industry analysts, it’s inventory that defines the ‘winners’ and ‘losers’ in the marketplace and right now, as it stands, Domestic brands are leading the way, Chrysler boasting a 72 day supply on its vehicles, allowing it to post a 20 percent gain in sales during July, as Honda and Toyota combined, slipped 6.9 percent. Ford, with a 54 day supply has seen sales jump by 13 percent for the bread and butter brand and 40 percent for Lincoln in the same period. GM, with a 73 day supply has reported gains of some 8 percent.



“Whoever has the cars, outsells everybody,” declared Ralph Martinez, a Chrysler dealer principal from Wilsonville, Oregon. “People are out there buying,” he said, but “they’re going to places that have a good selection.”



Source;

http://www.autoguide.com/auto-news/2011/08/honda-and-toyota-getting-back-on-track.html

Honda and Toyota: Getting Back on Track

This year hasn’t been the kindest to Japanese automakers Honda and Toyota. The devastation wrought by March’s earthquake and Tsunami in Japan, resulted in severe disruptions to their supply chains, causing dealer inventories to run low and other automakers to gain ground in sales.



However, after a dismal July, there are signs that both Honda and Toyota are gaining momentum; supply from Japan has improved, while factories in North America are running in overdrive in an effort to boost vehicle inventory to more ‘normal’ levels.



Even though rivals, including Detroit’s big three, have gained ground this year as a result of problems facing the Japanese duo, most seem to view Honda and Toyota’s improving fortunes quite favorably.



Don Johnson, General Motors’ US sales head, believes that more Hondas and Toyotas on dealer lots will help stimulate overall growth in new car sales, bringing back buyers who’ve been sitting on the fence. ”A lot of brand-loyal customers have chosen to sit on the sidelines until selection and price improve,” he says. “They will be coming back into the market.”



That said, it is likely to be some time before inventory levels reach pre-March totals. Randy Pflughaupt, group vice president of sales administration for Toyota, believes it will be 2012 before the automaker achieves year-over-year sales increases; Honda meanwhile, is currently running at around 95 percent of normal production in Japan, with full inventory achieved on all US product lines bar the Civic which traditionally is one of it’s most popular models.



According to a number industry analysts, it’s inventory that defines the ‘winners’ and ‘losers’ in the marketplace and right now, as it stands, Domestic brands are leading the way, Chrysler boasting a 72 day supply on its vehicles, allowing it to post a 20 percent gain in sales during July, as Honda and Toyota combined, slipped 6.9 percent. Ford, with a 54 day supply has seen sales jump by 13 percent for the bread and butter brand and 40 percent for Lincoln in the same period. GM, with a 73 day supply has reported gains of some 8 percent.



“Whoever has the cars, outsells everybody,” declared Ralph Martinez, a Chrysler dealer principal from Wilsonville, Oregon. “People are out there buying,” he said, but “they’re going to places that have a good selection.”



Source;

http://www.autoguide.com/auto-news/2011/08/honda-and-toyota-getting-back-on-track.html

Honda says studying shift overseas to avoid yen effect

* Working under assumption of 80 yen to dollar over next 3 years

* Exports from Japan unsustainable at current dollar-yen rate -CFO

* Discussion of shifting output to continue until last minute -CFO

* Not optimistic that yen will weaken -CFO

* Honda move could put pressure on Toyota, Nissan (Adds details)

By Chang-Ran Kim, Asia autos correspondent



TOKYO, Aug 9 (Reuters) - Honda Motor Co is studying possible production bases overseas to replace export-bound car production in Japan that has been battered by a strong yen, a top executive said on Tuesday.

Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, but Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that any concrete steps are being considered to reduce output in Japan.

"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo.

"And under that assumption, the discussion to look for an alternative production base is inevitable."

Ike tempered his comments by stressing that jobs in Japan needed to be protected, and that the discussion would continue right up to the point when the board makes a formal decision, taking into account exchange rates at that time.

But he said he was not necessarily optimistic that the yen would weaken, and that Honda was bracing itself for further appreciation towards 70 yen to the dollar after Japan's solo intervention last week did little to stem the dollar's fall. The U.S. currency was fetching around 77.00 yen on Tuesday.

"Protecting Japanese manufacturing and building cars here is becoming more and more difficult," Ike said. "We can keep the technology here, but if we were to build cars in Japan, they may be good (quality) products but they would be too expensive. And an expensive product is not necessarily a good product."

EXPORT EXPOSURE

Among Japan's top automakers, third-ranked Honda is the least exposed to excessive domestic production, exporting just 30 percent of its Japan-made cars last year. Toyota Motor Corp exported 53 percent, while Nissan Motor Co shipped 59 percent.

All three automakers have a basic strategy of creating a natural hedge against currency swings by producing as many cars as they can where they are sold. But for smaller markets where demand is insufficient to build a factory, production has been concentrated in Japan.

"At these exchange rates we lose competitiveness on these exports, and that leads to a fall in sales, triggering a vicious cycle," Ike said. "And when that happens, the natural consequence is for that production (in Japan) to disappear."

Ike said Honda had already gone down that path with motorcycles, expanding production in India, Vietnam and Indonesia. Honda imports many motorcycles into Japan from Thailand and China.

If Honda takes a similar step with cars, it could put pressure on rivals Toyota and Nissan to do the same and lead to a hollowing out of Japanese manufacturing, one of the main drivers of the country's economy.

Toyota and Nissan have been more vocal than Honda about protecting domestic production, with Toyota pledging 3 million vehicles a year of output in Japan and Nissan pledging 1 million.

Nissan said this week it plans to boost its sales in the shrinking Japanese market to keep the 1 million annual production target as it shifts more export-bound output overseas.

"Car makers are trying hard to cut costs to absorb the currency impact, but there's a limit to the speed and scope of what they can achieve," said Credit Suisse auto analyst Issei Takahashi.

"Even if they build a lot in Japan, if they lose money by doing so they won't be able to protect jobs. I think it's inevitable that some production shifts overseas." (Editing by Edmund Klamann)

Source;

http://www.reuters.com/article/2011/08/09/honda-idUSL3E7J922O20110809

Honda says studying shift overseas to avoid yen effect

* Working under assumption of 80 yen to dollar over next 3 years

* Exports from Japan unsustainable at current dollar-yen rate -CFO

* Discussion of shifting output to continue until last minute -CFO

* Not optimistic that yen will weaken -CFO

* Honda move could put pressure on Toyota, Nissan (Adds details)

By Chang-Ran Kim, Asia autos correspondent



TOKYO, Aug 9 (Reuters) - Honda Motor Co is studying possible production bases overseas to replace export-bound car production in Japan that has been battered by a strong yen, a top executive said on Tuesday.

Japanese auto executives have repeatedly warned that the yen had strengthened beyond what domestic exporters could cope with, but Honda Chief Financial Officer Fumihiko Ike's comment was the first indication so far that any concrete steps are being considered to reduce output in Japan.

"We currently have a three-year plan under which we are assuming a rate of 80 yen to the dollar," Ike told a small group of reporters at Honda's headquarters in Tokyo.

"And under that assumption, the discussion to look for an alternative production base is inevitable."

Ike tempered his comments by stressing that jobs in Japan needed to be protected, and that the discussion would continue right up to the point when the board makes a formal decision, taking into account exchange rates at that time.

But he said he was not necessarily optimistic that the yen would weaken, and that Honda was bracing itself for further appreciation towards 70 yen to the dollar after Japan's solo intervention last week did little to stem the dollar's fall. The U.S. currency was fetching around 77.00 yen on Tuesday.

"Protecting Japanese manufacturing and building cars here is becoming more and more difficult," Ike said. "We can keep the technology here, but if we were to build cars in Japan, they may be good (quality) products but they would be too expensive. And an expensive product is not necessarily a good product."

EXPORT EXPOSURE

Among Japan's top automakers, third-ranked Honda is the least exposed to excessive domestic production, exporting just 30 percent of its Japan-made cars last year. Toyota Motor Corp exported 53 percent, while Nissan Motor Co shipped 59 percent.

All three automakers have a basic strategy of creating a natural hedge against currency swings by producing as many cars as they can where they are sold. But for smaller markets where demand is insufficient to build a factory, production has been concentrated in Japan.

"At these exchange rates we lose competitiveness on these exports, and that leads to a fall in sales, triggering a vicious cycle," Ike said. "And when that happens, the natural consequence is for that production (in Japan) to disappear."

Ike said Honda had already gone down that path with motorcycles, expanding production in India, Vietnam and Indonesia. Honda imports many motorcycles into Japan from Thailand and China.

If Honda takes a similar step with cars, it could put pressure on rivals Toyota and Nissan to do the same and lead to a hollowing out of Japanese manufacturing, one of the main drivers of the country's economy.

Toyota and Nissan have been more vocal than Honda about protecting domestic production, with Toyota pledging 3 million vehicles a year of output in Japan and Nissan pledging 1 million.

Nissan said this week it plans to boost its sales in the shrinking Japanese market to keep the 1 million annual production target as it shifts more export-bound output overseas.

"Car makers are trying hard to cut costs to absorb the currency impact, but there's a limit to the speed and scope of what they can achieve," said Credit Suisse auto analyst Issei Takahashi.

"Even if they build a lot in Japan, if they lose money by doing so they won't be able to protect jobs. I think it's inevitable that some production shifts overseas." (Editing by Edmund Klamann)

Source;

http://www.reuters.com/article/2011/08/09/honda-idUSL3E7J922O20110809

Honda gives back

by David Taylor of www.simcoe.com



ALLISTON - When the sirens started their relentless wail on March 11, 2011 along the eastern seaboard of Japan, who could have imagined that a warning signal might also be resonating in a community in Central Ontario 10,000 kilometres away?



Ever since a massive earthquake rocked Japan almost five months ago, the automobile industry has been adjusting production levels. And its effects have been felt here.



While the world watched as Japan suffered and fought to rebuild, the question became: How would it affect the Simcoe region and the close-knit community of Alliston where Honda operates two sprawling production facilities, employing more than 4,000 people?



The Honda of Canada Manufacturing (HCM) facility in Alliston is one of the assembly operations directly affected by parts shortages.



The vast majority of Honda’s parts and materials are sourced here in North America, but Japan is still a critical source.



“A few critical parts continue to be supplied from Japan,” said Honda Canada executive vice president Jerry Chenkin at Honda Canada’s new, eco-driven headquarters in Markham. “At this time, many of Honda’s Japan-based parts suppliers have resumed production and most are functioning at 50 per cent or better capacity.”



Chenkin said Honda is working diligently and closely with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain.



However, the situation changes constantly, a fact borne out by twice-a-day conference calls with the worldwide corporate head office and parts facilities in Japan, he added.



HCM in Alliston and other plants around the world have been forced to cut back operations, limiting overall production.



Following the tsunami, workers on the production lines reported for duty and worked on the line for half their normal shift. The balance of their hours was not been cut, though. They performed other work around the plant on a first come, first serve basis. And, during most non-production periods, HCM employees have the option to take time off without pay, cover the time off with vacation, or report to work for non-production activities that might include cleaning and maintenance, additional training, and involvement in a wide variety of projects.



Honda is doing all that it can to insulate their local workers from the effects of the disaster many time zones away.



“Honda remains focused on minimizing the impact to associates and their families, and plans no layoffs at any of its North American facilities,” Chenkin said.



Honda started reducing production at various North American plants at the end of March since their supply chain system, like most in the industry, allows for between 30 and 40 days of uninterrupted production. But the shortage of key parts has grown more acute as the company struggles to resume operations in Japan or find alternative sources for components.



Unfortunately, this necessary move comes at a bad time for Honda.The versatile Alliston plants assemble the Honda Civic (coupe, sedan and Si models), as well as the Acura ZDX, MDX and CSX.



On April 20, Honda launched the ninth generation of the Honda Civic in five different models. For the last 13 consecutive years, the Civic has been the best selling passenger vehicle in Canada.



Production on the 2012 Civic line began back in January in Alliston, and according to sources, 10,000 to 12,000 units should have been ready to ship by launch time.



However, between Canada and the US, some 30,000 to 35,000 Civics are sold in an average month.



For the 2012 model year, Honda will likely be facing greater competition from other Asian-based rivals – specifically the Toyota Corolla, the Hyundai Elantra and the Mazda 3.



Implications felt half a world away

What are the implications for Alliston, Simcoe, Ontario, Canada and even the rest of the world after the earthquake and tsunami in Japan last spring?



Honda Canada spokesperson Richard Jacobs said dealers will continue to receive Civics and other models, but the impact will vary in different regions depending on demand. Jacobs also said it remains unclear if Civic buyers will experience significant wait times for their new models.



“We’re not really sure yet what the extent of the impact will be and when and how much it will be,” he added.



Among other implications, Honda says it will now delay the launch of the new generation 2012 CR-V sport utility vehicle by at least a month. Honda will extend output of the 2011 model. CR-Vs are presently being built for the North American market in Ohio.



Production for this vehicle will shift to Alliston for 2012 – a testament to the value Honda places on the region’s capabilities.



Honda said it would continue to make decisions based on the status of the recovery in Japan and on the stream of parts. However, a parts shortage still remains a concern.



“Honda is making every effort to work toward a full recovery as quickly as possible,” Chenkin said. “We appreciate everyone’s understanding during these challenging times.”



Honda has managed the unprecedented parts supply issues that resulted from the devastating impact of the March 11 earthquake and tsunami in Japan with no layoffs at any of its 14 production plants in North America.



“We are particularly proud of the efforts of our manufacturing team in Alliston,” said Chenkin, “and we applaud them for the steps they have taken to keep our associates working together as a team during this difficult period... We still have challenges to overcome, but once we have normalized operations we will owe them a great debt of thanks.”



Giving back

In recent weeks, with input from associates and HCM management, some employees have even been working offsite, helping out organizations in the community.



Organizations that have benefited from these “volunteer” initiatives include the Alliston and District Humane Society, the Alliston Good Shepherd Food Bank and the Barrie Food Bank.



At the human society, Honda employees have been building an outdoor shelter, cleaning and helping out with the animals. At the Alliston food bank, they’ve been prepping and painting rooms and offices and are on standby for additional work. In Barrie, they’ve been helping move all stored food from the old fire hall to the Food Bank’s temporary location before the move to new centralized quarters on Anne Street – an enormous undertaking.



Lori Van Valkenburg, with Honda, said HCM also provided assistance at the Habitat for Humanity in Alliston.



“Every little bit helps – everyone,” she said. “It’s a winning situation for all involved, including the community and HCM associates. The advantages to everyone are practically immediate – and far reaching.”



As the supply of parts from Japan improves, production will ramp-up in August on a step-by-step, plant-by-plant and model-by-model basis, with production gradually returning to 100 per cent of the original plan in Honda plants across North America – including Alliston ¬– in September.



However, production of the new 2012 Civic line-up will continue at a reduced rate of approximately 50 per cent due to the limited supply of specific key components. Full production is expected to resume sometime in the fall.



Positive turnaround

“We are pleased to see a positive turnaround represented by this significant improvement in our production situation,” said Chenkin. “Throughout this crisis, Honda has been working hard to achieve a speedy recovery, while maintaining a focus on our longer-term plans for continued growth in sales and production in order to meet the growing needs of our customers.”



A review of sales figures for all models and brands sold in Canada in May, June and even July show expected reductions in most models sold. However, the figures may also be a little misleading and the downturn may not all be directed to recent cataclysmic events. There were significant declines in sales pretty much across the board.



A few days ago, the parent company in Japan, Honda Motor Co., Ltd. reported an 88 per cent plunge in first-quarter profits after the earthquake and subsequent tsunami. An overall net profit of $481 million was announced. However, in a sign that conditions are improving, Honda raised its full-year earnings forecast by 35 per cent.



Given the constraints the company had to work through during the reporting period, the numbers are better than expected, analysts said. "I think Honda deserves some credit for the first quarter, in which some expected the firm to post losses," said Naoki Fuiwara, a fund manager at Shinkin Asset Management with head offices in Tokyo, Japan.



Source;

http://www.simcoe.com/news/article/1052194--honda-gives-back

Honda gives back

by David Taylor of www.simcoe.com



ALLISTON - When the sirens started their relentless wail on March 11, 2011 along the eastern seaboard of Japan, who could have imagined that a warning signal might also be resonating in a community in Central Ontario 10,000 kilometres away?



Ever since a massive earthquake rocked Japan almost five months ago, the automobile industry has been adjusting production levels. And its effects have been felt here.



While the world watched as Japan suffered and fought to rebuild, the question became: How would it affect the Simcoe region and the close-knit community of Alliston where Honda operates two sprawling production facilities, employing more than 4,000 people?



The Honda of Canada Manufacturing (HCM) facility in Alliston is one of the assembly operations directly affected by parts shortages.



The vast majority of Honda’s parts and materials are sourced here in North America, but Japan is still a critical source.



“A few critical parts continue to be supplied from Japan,” said Honda Canada executive vice president Jerry Chenkin at Honda Canada’s new, eco-driven headquarters in Markham. “At this time, many of Honda’s Japan-based parts suppliers have resumed production and most are functioning at 50 per cent or better capacity.”



Chenkin said Honda is working diligently and closely with the few suppliers that have yet to resume production to re-establish their operations, while also evaluating additional sources for some parts in the supply chain.



However, the situation changes constantly, a fact borne out by twice-a-day conference calls with the worldwide corporate head office and parts facilities in Japan, he added.



HCM in Alliston and other plants around the world have been forced to cut back operations, limiting overall production.



Following the tsunami, workers on the production lines reported for duty and worked on the line for half their normal shift. The balance of their hours was not been cut, though. They performed other work around the plant on a first come, first serve basis. And, during most non-production periods, HCM employees have the option to take time off without pay, cover the time off with vacation, or report to work for non-production activities that might include cleaning and maintenance, additional training, and involvement in a wide variety of projects.



Honda is doing all that it can to insulate their local workers from the effects of the disaster many time zones away.



“Honda remains focused on minimizing the impact to associates and their families, and plans no layoffs at any of its North American facilities,” Chenkin said.



Honda started reducing production at various North American plants at the end of March since their supply chain system, like most in the industry, allows for between 30 and 40 days of uninterrupted production. But the shortage of key parts has grown more acute as the company struggles to resume operations in Japan or find alternative sources for components.



Unfortunately, this necessary move comes at a bad time for Honda.The versatile Alliston plants assemble the Honda Civic (coupe, sedan and Si models), as well as the Acura ZDX, MDX and CSX.



On April 20, Honda launched the ninth generation of the Honda Civic in five different models. For the last 13 consecutive years, the Civic has been the best selling passenger vehicle in Canada.



Production on the 2012 Civic line began back in January in Alliston, and according to sources, 10,000 to 12,000 units should have been ready to ship by launch time.



However, between Canada and the US, some 30,000 to 35,000 Civics are sold in an average month.



For the 2012 model year, Honda will likely be facing greater competition from other Asian-based rivals – specifically the Toyota Corolla, the Hyundai Elantra and the Mazda 3.



Implications felt half a world away

What are the implications for Alliston, Simcoe, Ontario, Canada and even the rest of the world after the earthquake and tsunami in Japan last spring?



Honda Canada spokesperson Richard Jacobs said dealers will continue to receive Civics and other models, but the impact will vary in different regions depending on demand. Jacobs also said it remains unclear if Civic buyers will experience significant wait times for their new models.



“We’re not really sure yet what the extent of the impact will be and when and how much it will be,” he added.



Among other implications, Honda says it will now delay the launch of the new generation 2012 CR-V sport utility vehicle by at least a month. Honda will extend output of the 2011 model. CR-Vs are presently being built for the North American market in Ohio.



Production for this vehicle will shift to Alliston for 2012 – a testament to the value Honda places on the region’s capabilities.



Honda said it would continue to make decisions based on the status of the recovery in Japan and on the stream of parts. However, a parts shortage still remains a concern.



“Honda is making every effort to work toward a full recovery as quickly as possible,” Chenkin said. “We appreciate everyone’s understanding during these challenging times.”



Honda has managed the unprecedented parts supply issues that resulted from the devastating impact of the March 11 earthquake and tsunami in Japan with no layoffs at any of its 14 production plants in North America.



“We are particularly proud of the efforts of our manufacturing team in Alliston,” said Chenkin, “and we applaud them for the steps they have taken to keep our associates working together as a team during this difficult period... We still have challenges to overcome, but once we have normalized operations we will owe them a great debt of thanks.”



Giving back

In recent weeks, with input from associates and HCM management, some employees have even been working offsite, helping out organizations in the community.



Organizations that have benefited from these “volunteer” initiatives include the Alliston and District Humane Society, the Alliston Good Shepherd Food Bank and the Barrie Food Bank.



At the human society, Honda employees have been building an outdoor shelter, cleaning and helping out with the animals. At the Alliston food bank, they’ve been prepping and painting rooms and offices and are on standby for additional work. In Barrie, they’ve been helping move all stored food from the old fire hall to the Food Bank’s temporary location before the move to new centralized quarters on Anne Street – an enormous undertaking.



Lori Van Valkenburg, with Honda, said HCM also provided assistance at the Habitat for Humanity in Alliston.



“Every little bit helps – everyone,” she said. “It’s a winning situation for all involved, including the community and HCM associates. The advantages to everyone are practically immediate – and far reaching.”



As the supply of parts from Japan improves, production will ramp-up in August on a step-by-step, plant-by-plant and model-by-model basis, with production gradually returning to 100 per cent of the original plan in Honda plants across North America – including Alliston ¬– in September.



However, production of the new 2012 Civic line-up will continue at a reduced rate of approximately 50 per cent due to the limited supply of specific key components. Full production is expected to resume sometime in the fall.



Positive turnaround

“We are pleased to see a positive turnaround represented by this significant improvement in our production situation,” said Chenkin. “Throughout this crisis, Honda has been working hard to achieve a speedy recovery, while maintaining a focus on our longer-term plans for continued growth in sales and production in order to meet the growing needs of our customers.”



A review of sales figures for all models and brands sold in Canada in May, June and even July show expected reductions in most models sold. However, the figures may also be a little misleading and the downturn may not all be directed to recent cataclysmic events. There were significant declines in sales pretty much across the board.



A few days ago, the parent company in Japan, Honda Motor Co., Ltd. reported an 88 per cent plunge in first-quarter profits after the earthquake and subsequent tsunami. An overall net profit of $481 million was announced. However, in a sign that conditions are improving, Honda raised its full-year earnings forecast by 35 per cent.



Given the constraints the company had to work through during the reporting period, the numbers are better than expected, analysts said. "I think Honda deserves some credit for the first quarter, in which some expected the firm to post losses," said Naoki Fuiwara, a fund manager at Shinkin Asset Management with head offices in Tokyo, Japan.



Source;

http://www.simcoe.com/news/article/1052194--honda-gives-back

2012 Honda FIT Shuttle Late Honda car debut turns into hot event

Not for us in North America.... yet....
Honda headquarters is sweltering, executives are without ties and reporters are fanning themselves in a scene illustrative of the nation's struggle to conserve electricity since March 11, when the massive earthquake and tsunami sent the Fukushima No. 1 nuclear plant into meltdown.

The scene unfolded as Honda Motor Co. launched the Fit Shuttle station wagon, including hybrid versions, for the domestic market Thursday — three months later than planned — another sign of the disaster's widespread impact.

The quake and tsunami destroyed Honda's parts suppliers, dealers and design facility in the Tohoku region.

Still, President Takanobu Ito was relieved the company had come this far.

"It was a real tough three months for us," he told reporters, wearing a casual beige jacket and no tie instead of his usual dark suits.

Cool Biz, the annual practice of allowing less formal attire to be worn in the office during the summer, is finally being embraced in a big way in the name of saving power. Now dubbed Super Cool Biz, some employees are even being encouraged to wear Aloha shirts and shorts.

Although no Honda executives were seen in shorts and their shirts were relatively staid, the nuclear crisis hung like a cloud over the event.

Tokyo-based Honda's invitation to the product launch — one of the first since March 11 — had warned that thermostats will be set at 28 degrees and that executives would be dressed in Cool Biz attire.

In addition to the Fukushima No. 1 crisis, which is expected to take years to resolve, another power plant was shut down months later over safety fears, causing the government to pressure companies and consumers to cut back on power use.

Automakers, a pillar of the economy, are under great pressure to cut power use 15 percent.
Autoworkers are producing cars on weekends and will instead take Thursdays and Fridays off for the next three months starting in July to reduce the load on power companies and avoid blackouts during peak demand periods.

Honda has said vehicle production in Japan will return to predisaster levels by the end of this month, and global production in August or September.

All orders for the Fit Shuttle will be delivered in two months' time, said Sho Minekawa, the executive in charge of Japan sales. There are no plans to offer the model overseas so far.

"We are finally able to introduce this product," he said. "We apologize to all those who have been waiting."

The Fit Shuttle, which comes as a hybrid (starting at ¥1.81 million) and with a gasoline engine (starting at ¥1.61 million), delivers the same mileage as the smaller Fit hatchback, according to Honda.

The hybrid version delivers 30 km per liter, or about 70 mpg, under Japanese test conditions, it said.

Honda is expecting its profit for the fiscal year through next March to plunge 63.5 percent to ¥195 billion from the previous year because of parts shortages and other disaster woes.

The maker of the Civic sedan and Odyssey minivan was battered by the cost of fixing damaged property and equipment, higher raw material costs, the strong yen and research expenses related to future products, such as environmental technology. Honda's global vehicle sales for the current fiscal year are projected to drop 6 percent on year to 3.3 million vehicles.

Honda to hire 1,000 temps
Kyodo
Honda Motor Co. will hire about 1,000 term employees at domestic plants, including in Saitama and Mie prefectures, during the second half of fiscal 2011 to cope with increased production expected from October to March, company sources said Thursday.

Honda is taking the measure because production is recovering from the March 11 catastrophe more quickly than anticipated and is expected to return to near normal by late June, they said.

The automaker will therefore withdraw its earlier plan set in April to gradually reduce the approximately 600 term employees at the plant in Saitama to zero by the end of September.

Honda will renew contracts of term employees if they want to do so, even for those whose employment contracts have already expired, they said.

Source;
http://search.japantimes.co.jp/cgi-bin/nb20110617a1.html

2012 Honda FIT Shuttle Late Honda car debut turns into hot event

Not for us in North America.... yet....
Honda headquarters is sweltering, executives are without ties and reporters are fanning themselves in a scene illustrative of the nation's struggle to conserve electricity since March 11, when the massive earthquake and tsunami sent the Fukushima No. 1 nuclear plant into meltdown.

The scene unfolded as Honda Motor Co. launched the Fit Shuttle station wagon, including hybrid versions, for the domestic market Thursday — three months later than planned — another sign of the disaster's widespread impact.

The quake and tsunami destroyed Honda's parts suppliers, dealers and design facility in the Tohoku region.

Still, President Takanobu Ito was relieved the company had come this far.

"It was a real tough three months for us," he told reporters, wearing a casual beige jacket and no tie instead of his usual dark suits.

Cool Biz, the annual practice of allowing less formal attire to be worn in the office during the summer, is finally being embraced in a big way in the name of saving power. Now dubbed Super Cool Biz, some employees are even being encouraged to wear Aloha shirts and shorts.

Although no Honda executives were seen in shorts and their shirts were relatively staid, the nuclear crisis hung like a cloud over the event.

Tokyo-based Honda's invitation to the product launch — one of the first since March 11 — had warned that thermostats will be set at 28 degrees and that executives would be dressed in Cool Biz attire.

In addition to the Fukushima No. 1 crisis, which is expected to take years to resolve, another power plant was shut down months later over safety fears, causing the government to pressure companies and consumers to cut back on power use.

Automakers, a pillar of the economy, are under great pressure to cut power use 15 percent.
Autoworkers are producing cars on weekends and will instead take Thursdays and Fridays off for the next three months starting in July to reduce the load on power companies and avoid blackouts during peak demand periods.

Honda has said vehicle production in Japan will return to predisaster levels by the end of this month, and global production in August or September.

All orders for the Fit Shuttle will be delivered in two months' time, said Sho Minekawa, the executive in charge of Japan sales. There are no plans to offer the model overseas so far.

"We are finally able to introduce this product," he said. "We apologize to all those who have been waiting."

The Fit Shuttle, which comes as a hybrid (starting at ¥1.81 million) and with a gasoline engine (starting at ¥1.61 million), delivers the same mileage as the smaller Fit hatchback, according to Honda.

The hybrid version delivers 30 km per liter, or about 70 mpg, under Japanese test conditions, it said.

Honda is expecting its profit for the fiscal year through next March to plunge 63.5 percent to ¥195 billion from the previous year because of parts shortages and other disaster woes.

The maker of the Civic sedan and Odyssey minivan was battered by the cost of fixing damaged property and equipment, higher raw material costs, the strong yen and research expenses related to future products, such as environmental technology. Honda's global vehicle sales for the current fiscal year are projected to drop 6 percent on year to 3.3 million vehicles.

Honda to hire 1,000 temps
Kyodo
Honda Motor Co. will hire about 1,000 term employees at domestic plants, including in Saitama and Mie prefectures, during the second half of fiscal 2011 to cope with increased production expected from October to March, company sources said Thursday.

Honda is taking the measure because production is recovering from the March 11 catastrophe more quickly than anticipated and is expected to return to near normal by late June, they said.

The automaker will therefore withdraw its earlier plan set in April to gradually reduce the approximately 600 term employees at the plant in Saitama to zero by the end of September.

Honda will renew contracts of term employees if they want to do so, even for those whose employment contracts have already expired, they said.

Source;
http://search.japantimes.co.jp/cgi-bin/nb20110617a1.html

UPDATE: Honda Pres: Yen Remains Big Concern As Seeks To Restore Ops

By Yoshio Takahashi
Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Honda Motor Co.'s (7267.TO) chief executive voiced concern about the yen's strength Thursday, noting its current position could offset the Japanese auto maker's attempt to recover after the March 11 earthquake and tsunami.

"My feeling is that (the business) situation is tough, especially foreign exchange. I hope that the (unfavorable yen level) will change," Takanobu Ito, president and chief executive of the car maker, said at a press conference for the launch of the auto maker's Fit Shuttle hybrid wagon.

Earlier this week Honda said that it expects its net profit for the current fiscal year through March to drop 63% on the back of the yen's strength and reduced output resulting from a parts shortage in the wake of the disaster.

Honda expects a scarcity of some key parts from suppliers stricken by the disaster to reduce its global sales by 6% to 3.3 million vehicles this fiscal year.

In a bid to push sales during harsh times, Honda rolled out the Fit Shuttle hybrid wagon in Japan three month behind the initial schedule due to the earthquake.

The new hybrid with a starting price of Y1.81 million was developed based on its Fit company hybrid and can run 30 kilometers on a liter of gasoline.

This price is lower than the lowest price of the Prius Alpha minivan hybrid launched last month by Toyota of Y2.35 million.

Toyota's new hybrid was also introduced in Japan with a delay due to the disaster.

Honda said it has received orders for 7,000 Fit Shuttle hybrids, well above the model's monthly sales target of 4,000 units.

But Toyota sees much stronger demand for its newest hybrid, saying Tuesday that it has received 52,000 orders in Japan for the new minivan version of the Prius hybrid one month after its launch. The number far outstrips the company's 3,000 monthly sales target for the Prius Alpha.

Source;
http://online.wsj.com/article/BT-CO-20110616-702125.html

UPDATE: Honda Pres: Yen Remains Big Concern As Seeks To Restore Ops

By Yoshio Takahashi
Of DOW JONES NEWSWIRES

TOKYO (Dow Jones)--Honda Motor Co.'s (7267.TO) chief executive voiced concern about the yen's strength Thursday, noting its current position could offset the Japanese auto maker's attempt to recover after the March 11 earthquake and tsunami.

"My feeling is that (the business) situation is tough, especially foreign exchange. I hope that the (unfavorable yen level) will change," Takanobu Ito, president and chief executive of the car maker, said at a press conference for the launch of the auto maker's Fit Shuttle hybrid wagon.

Earlier this week Honda said that it expects its net profit for the current fiscal year through March to drop 63% on the back of the yen's strength and reduced output resulting from a parts shortage in the wake of the disaster.

Honda expects a scarcity of some key parts from suppliers stricken by the disaster to reduce its global sales by 6% to 3.3 million vehicles this fiscal year.

In a bid to push sales during harsh times, Honda rolled out the Fit Shuttle hybrid wagon in Japan three month behind the initial schedule due to the earthquake.

The new hybrid with a starting price of Y1.81 million was developed based on its Fit company hybrid and can run 30 kilometers on a liter of gasoline.

This price is lower than the lowest price of the Prius Alpha minivan hybrid launched last month by Toyota of Y2.35 million.

Toyota's new hybrid was also introduced in Japan with a delay due to the disaster.

Honda said it has received orders for 7,000 Fit Shuttle hybrids, well above the model's monthly sales target of 4,000 units.

But Toyota sees much stronger demand for its newest hybrid, saying Tuesday that it has received 52,000 orders in Japan for the new minivan version of the Prius hybrid one month after its launch. The number far outstrips the company's 3,000 monthly sales target for the Prius Alpha.

Source;
http://online.wsj.com/article/BT-CO-20110616-702125.html

Post-quake Honda says it now has lots of Fits, Insights for dealers

Honda offered a terrific sign this week that it is finally getting back on its feet in the U.S. after the March earthquake and tsunami that drastically slashed production.

It is now telling dealers that they can resume ordering two of the most in-demand models -- the small Honda Fit and the hybrid Insight, Automotive News reports.

The two models, both made in Japan, have been among the most in-demand as gas rose to an average of nearly $4 a gallon. The Fit is the smallest car that Honda sells in the U.S. and comes recommended by Consumer Reports. The Insight is the brand's underrated hybrid, a competitor to Toyota's Prius.

"Honda's manufacturing operations in Japan are returning to nearly normalized levels by the end of summer," said John Mendel, executive vice president of Honda's U.S. sales operation in a memo to Honda dealers. Adding back Fit and Insight "represents a major improvement from the recovery timetable we provided you last month."

Honda stopped orders on the models after the earthquake. Honda didn't incur major damange to its factories in Japan, but it has been badly impacted by the shortage of parts that has hampered other automakers, including those in the U.S.

In fact, Mendel is downright bullish. Noting that other models like the Pilot SUV, Odyssey minivan and CR-V small crossover are coming back to normal production levels, he implored dealers, "it is imperative that you keep your foot on the sales pedal."

It won't be easy: Sales fell 22% in May compared with a year ago, the News notes.

Source;
http://content.usatoday.com/communities/driveon/post/2011/06/post-quake-honda-says-now-lots-of-fits-insights-for-dealers/1

Post-quake Honda says it now has lots of Fits, Insights for dealers

Honda offered a terrific sign this week that it is finally getting back on its feet in the U.S. after the March earthquake and tsunami that drastically slashed production.

It is now telling dealers that they can resume ordering two of the most in-demand models -- the small Honda Fit and the hybrid Insight, Automotive News reports.

The two models, both made in Japan, have been among the most in-demand as gas rose to an average of nearly $4 a gallon. The Fit is the smallest car that Honda sells in the U.S. and comes recommended by Consumer Reports. The Insight is the brand's underrated hybrid, a competitor to Toyota's Prius.

"Honda's manufacturing operations in Japan are returning to nearly normalized levels by the end of summer," said John Mendel, executive vice president of Honda's U.S. sales operation in a memo to Honda dealers. Adding back Fit and Insight "represents a major improvement from the recovery timetable we provided you last month."

Honda stopped orders on the models after the earthquake. Honda didn't incur major damange to its factories in Japan, but it has been badly impacted by the shortage of parts that has hampered other automakers, including those in the U.S.

In fact, Mendel is downright bullish. Noting that other models like the Pilot SUV, Odyssey minivan and CR-V small crossover are coming back to normal production levels, he implored dealers, "it is imperative that you keep your foot on the sales pedal."

It won't be easy: Sales fell 22% in May compared with a year ago, the News notes.

Source;
http://content.usatoday.com/communities/driveon/post/2011/06/post-quake-honda-says-now-lots-of-fits-insights-for-dealers/1

Honda plans to bring its Japanese assembly plants back to normal output by summer

Honda Motor Co. is seeking to recover from the Japan disaster months earlier than forecasted. It expects that its assembly plants in Japan will be able to resume normal production by summer. Spokesman Keitaro Yamamoto said Honda’s factories in Sayama and Suzuka factories, the car’s only assembly plants in Japan, are expected to get back to pre-earthquake production levels by August. Honda had previously announced that global production will be restored by the end of the year. Honda had been significantly affected by the March 11 earthquake and tsunami in Japan that had resulted to disruptions in the supply chain and to idled plants.

But it’s likely that the global operations will normalize earlier with the progress in the country’s recovery, according to Autonews. Honda anticipates that the r&d center’s engineers, who were out of work after the disaster struck, will go back to the facility by the middle of June. The earthquake claimed one death and led to several injuries when it caused the ceiling at Honda’s body design facility to crash down. Last March, Honda put a thousand of its r&d workers (about 10% of the center’s total workforce) to continue their work at its other buildings in the site or at its other facilities in Japan while repairs are ongoing.

Yamamoto said that suppliers are exceeding expectations and are restoring output earlier. That is why automakers are also able to resume normal production earlier too. Honda’s improved outlook was revealed only days after it said that U.S. production will go back to normal this August for its entire lineup except the recently redesigned Civic. Honda has announced that a second shift will be put up later in 2011 at its Civic plant in Indiana to help make up for the production losses.

Source;
http://www.4wheelsnews.com/honda-plans-to-bring-its-japanese-assembly-plants-back-to-normal-output-by/

Honda plans to bring its Japanese assembly plants back to normal output by summer

Honda Motor Co. is seeking to recover from the Japan disaster months earlier than forecasted. It expects that its assembly plants in Japan will be able to resume normal production by summer. Spokesman Keitaro Yamamoto said Honda’s factories in Sayama and Suzuka factories, the car’s only assembly plants in Japan, are expected to get back to pre-earthquake production levels by August. Honda had previously announced that global production will be restored by the end of the year. Honda had been significantly affected by the March 11 earthquake and tsunami in Japan that had resulted to disruptions in the supply chain and to idled plants.

But it’s likely that the global operations will normalize earlier with the progress in the country’s recovery, according to Autonews. Honda anticipates that the r&d center’s engineers, who were out of work after the disaster struck, will go back to the facility by the middle of June. The earthquake claimed one death and led to several injuries when it caused the ceiling at Honda’s body design facility to crash down. Last March, Honda put a thousand of its r&d workers (about 10% of the center’s total workforce) to continue their work at its other buildings in the site or at its other facilities in Japan while repairs are ongoing.

Yamamoto said that suppliers are exceeding expectations and are restoring output earlier. That is why automakers are also able to resume normal production earlier too. Honda’s improved outlook was revealed only days after it said that U.S. production will go back to normal this August for its entire lineup except the recently redesigned Civic. Honda has announced that a second shift will be put up later in 2011 at its Civic plant in Indiana to help make up for the production losses.

Source;
http://www.4wheelsnews.com/honda-plans-to-bring-its-japanese-assembly-plants-back-to-normal-output-by/

Policies say a lot about Honda

It is very good news that Honda expects all its North American operations to be back to full speed by August and that includes its Lincoln plant where three of its most popular vehicles are assembled.

The March earthquake and tsunami in Japan severely hampered Honda’s supply chain and ended up costing the giant automaker months of production as it faced difficult and at times insurmountable obstacles to getting supplies from Japan to North America.

Without those supplies, cars could not be built.

As time passed, the supply chain opened up a bit, and then a little more. But not too long ago Honda officials (along with other Japanese automakers) were expecting a late fall date for full production to resume.

Last week, however, the company announced it wouldn’t take that long.“Honda will increase production volume at its North America automobile plants to a rate of 100 percent original production plan in August,” a company press release announced.

Honda’s employees in Lincoln met the news with enthusiasm.

“Today we announced to our associates in plant-wide meetings that we are planning to accelerate recovery of our production. …” said Mark Morrison, a company spokesman. “When we announced that the Odyssey and Pilot would reach 100 percent of their original production plan in August, our associates greeted the news with great applause,” he said.

That kind of reaction is what you would expect from Honda employees. The 4,000 people who work in the local plant are intensely loyal and, based on the plant’s expansion since opening, also are very productive.

That loyalty and productivity have been rewarded with a unique approach to the forced slowdown in production. Rather than lay off workers, Honda allowed them to work on maintenance chores, or to take earned vacation time to keep their paychecks coming. And after the April 27 tornadoes ripped through our area, Honda allowed its employees to take two days per week to volunteer at cleanup activities while getting paid as though they were at work.

Those policies say a lot about Honda and the kind of company it is. And they say a lot about Honda’s employees and the kind of people they are.

Honda made it through this parts crisis without laying off a single employee in their North American plants, the company said. Now that they are ready to ramp up production again, those employees are available and their morale should be high, since no one had to do with a reduced paycheck during the difficult times.

The Japanese automaker obviously enjoys great economic strength to be able to weather such a crisis without cutting employee paychecks. We commend Honda for its approach, we continue to wish the company a long and prosperous future in Lincoln and the rest of its North America plants.

Source: The Daily Home - Policies say a lot about Honda

Policies say a lot about Honda

It is very good news that Honda expects all its North American operations to be back to full speed by August and that includes its Lincoln plant where three of its most popular vehicles are assembled.

The March earthquake and tsunami in Japan severely hampered Honda’s supply chain and ended up costing the giant automaker months of production as it faced difficult and at times insurmountable obstacles to getting supplies from Japan to North America.

Without those supplies, cars could not be built.

As time passed, the supply chain opened up a bit, and then a little more. But not too long ago Honda officials (along with other Japanese automakers) were expecting a late fall date for full production to resume.

Last week, however, the company announced it wouldn’t take that long.“Honda will increase production volume at its North America automobile plants to a rate of 100 percent original production plan in August,” a company press release announced.

Honda’s employees in Lincoln met the news with enthusiasm.

“Today we announced to our associates in plant-wide meetings that we are planning to accelerate recovery of our production. …” said Mark Morrison, a company spokesman. “When we announced that the Odyssey and Pilot would reach 100 percent of their original production plan in August, our associates greeted the news with great applause,” he said.

That kind of reaction is what you would expect from Honda employees. The 4,000 people who work in the local plant are intensely loyal and, based on the plant’s expansion since opening, also are very productive.

That loyalty and productivity have been rewarded with a unique approach to the forced slowdown in production. Rather than lay off workers, Honda allowed them to work on maintenance chores, or to take earned vacation time to keep their paychecks coming. And after the April 27 tornadoes ripped through our area, Honda allowed its employees to take two days per week to volunteer at cleanup activities while getting paid as though they were at work.

Those policies say a lot about Honda and the kind of company it is. And they say a lot about Honda’s employees and the kind of people they are.

Honda made it through this parts crisis without laying off a single employee in their North American plants, the company said. Now that they are ready to ramp up production again, those employees are available and their morale should be high, since no one had to do with a reduced paycheck during the difficult times.

The Japanese automaker obviously enjoys great economic strength to be able to weather such a crisis without cutting employee paychecks. We commend Honda for its approach, we continue to wish the company a long and prosperous future in Lincoln and the rest of its North America plants.

Source: The Daily Home - Policies say a lot about Honda

WSJ: Honda To Resume Full North American Auto Production In August

By Mike Ramsey
Of THE WALL STREET JOURNAL

DAYTON, Ohio (Dow Jones)--Honda Motor Co. (HMC, 7267.TO) will return its North American auto production to normal levels for all but one vehicle in August, faster than the company expected, the company said in a statement Thursday.

Honda has been running its plants at around 50% of their normal volume since April because of limited supplies of critical parts. Honda, Toyota Motor Corp. (TM, 7203.TO) and Nissan Motor Co. (NSANY, 7201.TO) have all limited their production this year because of the massive March 11 earthquake that damaged dozens of parts suppliers, particularly electronics makers.

Unfortunately for Honda, the lone car built in North America that won't return to full production in August is the redesigned Civic. Production of the vehicle will remain at 50% of projected volume because of limited supplies of parts and return to normal sometime in the fall, the company said. The Civic is one of Honda's best-selling models and the redesigned model was expected to help drive sales this year, reversing a market-share decline.

"The light at the end of the tunnel is glowing brighter for us, represented by this significant improvement in our production situation," said John Mendel, executive vice president of American Honda Motor Co., in the statement.

Honda, with more production in North America than Toyota or Nissan, has been the slowest to return its plants to higher volume. Nissan's U.S. production missed only a few days and Toyota is ramping back up most of its plants in North America next month.

Low inventories of key vehicles, combined with few incentives from Honda and maybe the perception that cars aren't available, are expected to drag down Honda's sales results in May. TrueCar.com, a consumer research and vehicle pricing website, predicts Honda's May sales will decline 26%, the most of any major manufacturer.

Honda's Mendel last week sent a letter to dealers to encourage then to push for sales harder and to say that supplies wouldn't run out because sales results were disappointing at that point in the month.

Source;
http://online.wsj.com/article/BT-CO-20110526-707691.html

WSJ: Honda To Resume Full North American Auto Production In August

By Mike Ramsey
Of THE WALL STREET JOURNAL

DAYTON, Ohio (Dow Jones)--Honda Motor Co. (HMC, 7267.TO) will return its North American auto production to normal levels for all but one vehicle in August, faster than the company expected, the company said in a statement Thursday.

Honda has been running its plants at around 50% of their normal volume since April because of limited supplies of critical parts. Honda, Toyota Motor Corp. (TM, 7203.TO) and Nissan Motor Co. (NSANY, 7201.TO) have all limited their production this year because of the massive March 11 earthquake that damaged dozens of parts suppliers, particularly electronics makers.

Unfortunately for Honda, the lone car built in North America that won't return to full production in August is the redesigned Civic. Production of the vehicle will remain at 50% of projected volume because of limited supplies of parts and return to normal sometime in the fall, the company said. The Civic is one of Honda's best-selling models and the redesigned model was expected to help drive sales this year, reversing a market-share decline.

"The light at the end of the tunnel is glowing brighter for us, represented by this significant improvement in our production situation," said John Mendel, executive vice president of American Honda Motor Co., in the statement.

Honda, with more production in North America than Toyota or Nissan, has been the slowest to return its plants to higher volume. Nissan's U.S. production missed only a few days and Toyota is ramping back up most of its plants in North America next month.

Low inventories of key vehicles, combined with few incentives from Honda and maybe the perception that cars aren't available, are expected to drag down Honda's sales results in May. TrueCar.com, a consumer research and vehicle pricing website, predicts Honda's May sales will decline 26%, the most of any major manufacturer.

Honda's Mendel last week sent a letter to dealers to encourage then to push for sales harder and to say that supplies wouldn't run out because sales results were disappointing at that point in the month.

Source;
http://online.wsj.com/article/BT-CO-20110526-707691.html