Honda Extends Production Suspension to May 1
Honda announced it has once more extended the production suspension at all of its automobile, engine, and transmission plants across the United States and Canada. Production will remain suspended through May 1.
Honda began its automobile production suspension on March 23 and has since extended it again twice. Interestingly, the automaker only mentioned stopping the spread of the COVID-19 virus in its first two press releases related to the suspension of automobile production. In the last two statements, it only cited economic reasons for continuing the suspension.
“In addition to the impact of COVID-19 on the marketplace, stay-at-home orders in many cities and states prevent consumers in a number of markets from purchasing new vehicles,” Honda’s statement read. “As a result, Honda must continue to suspend production in order to align product supply with a lack of market demand.”
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Unsurprisingly, March sales were down 48 percent for the automaker, and sales are anticipated to be even worse in April, the first full month with social distancing rules in effect. However, Honda is remaining optimistic.
“At Honda, we are focused more than ever on supporting our customers, our dealers, our associates, and the communities where we live and work in the presence of this unprecedented threat to our health and the economy,” said Steven Center, Honda VP of Automobile Sales. “Our country is going to come back strong and we are going to come back strong, and we know there are better times ahead.”
Shutdown and declining sales notwithstanding, the automaker pledged $1 million to COVID-19 emergency relief, and created a new donation matching program designed to encourage giving to local food banks across North America.
Honda also set up a temporary paid leave of absence program for its associates, which enables them to earn full pay for up to 10 non-production business days. However, it says that “the vast majority” of its associates are working remotely from home.
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Kurt Verlin was born in France and lives in the United States. Throughout his life he was always told French was the language of romance, but it was English he fell in love with. He likes cats, music, cars, 30 Rock, Formula 1, and pretending to be a race car driver in simulators; but most of all, he just likes to write about it all. See more articles by Kurt.