Honda is cutting production at its North American factories in half due to severe flooding in Thailand that is causing a shortage of parts needed to assemble its vehicles. Honda says in a statement that many of its suppliers in Asia have stopped parts production because of the floods, which is causing a parts shortage here in North America.
The Los Angeles Times says that the majority of Honda and Acura vehicles sold in the U.S. are assembled here, but that most of the parts are sourced from areas affected by the floods. “Most of the parts come from North American suppliers, but Honda said it also buys ‘a few critical electronic parts’ from Thailand and other regions of the world,” the Los Angeles Times reports.
The 50 percent cut in production will last though Nov. 10 at U.S. and Canada plants. The automaker says the parts shortage may delay the December on-sale date of the redesigned 2012 Honda CR-V by several weeks. Honda says it will release a new on-sale date for the 2012 CR-V soon.
Before the flooding, Honda was on the heels of recovering from production shortages from the March earthquake in Japan.
“The most recent news about production disruptions comes within hours of Honda reporting that its profits were halved by the production disruptions and lost sales caused by the March 11 earthquake and tsunami in Japan,” Edmunds Auto Observer reports.
Shopping for a new car? Check out the U.S. News rankings of this year's best cars. Then, look for a great deal on a new car by checking out this month’s best car deals. Also, be sure to follow us on Twitter and Facebook.