The Montreal Gazette - Honda said Monday it would be slowing North American production of its vehicles, including those built at its facilities in Alliston, Ont., by 50 per cent due to a parts shortage stemming from floods in Thailand.
The news comes less than two weeks after Honda of Canada said its operations had returned to normal levels on all its vehicle lines for the first time since the earthquake and tsunami that hit Japan in March wreaked havoc on its operations.
"As the flooding in Thailand continues, a number of Honda suppliers in Asia currently are unable to maintain parts production, which is disrupting the flow of parts to our production operations in North America," the company said in a statement.
As a result, effective Wednesday, Honda will slow production at all six of its North American plants to 50 per cent, including in Alliston, where it builds its popular Civic.
Honda said it would also cancel overtime shifts on Saturdays through November, and implement a non-production day on Nov. 11 to ease demand on parts.
The company said the production cuts might also delay to the launch of its all-new 2012 CR-V in the U.S.
Subsequent adjustments will be announced as they are determined, the company said.
Toyota, which has also been plagued by parts shortages this year, said last week it too would be cutting overtime shifts in the aftermath of the Thai floods in order to ease demand on parts.
The news is a devastating blow for Honda, whose Canadian sales have slipped nearly 16 per cent this year in a large part due to supply issues at its dealerships.
The Civic, which has been the best selling passenger car in Canada for 13 years running, is also at risk of losing the top spot to the Hyundai Elantra.
