Ohio Honda plants to reduce production because of parts shortages

Honda production facilities throughout the United States and Canada, which includes three plants in Ohio, will temporarily reduce production starting Wednesday, according to a company spokesman.

Specifics about the impact to Ohio plants were not being released, but the reductions are temporary and there will be no layoffs or cutbacks for workers, said Jeffrey Smith, assistant vice president of corporate affairs for American Honda Motor Co., Inc.

The reductions will vary from plant to plant based on parts availability.

Honda has auto plants in Marysville and East Liberty, as well as an engine plant in Anna. These plants and support offices employ about 13,500 workers.

The March 11 earthquake and tsunami that devastated Japan has led to a shortage of some critical parts manufactured there, Smith said.

Honda had previously said it would make an announcement Friday.

“We anticipated some interruptions and now we are basically implementing a strategic temporary reduction to conserve parts and ensure availability,” Smith said. “During those times when plants are not producing, our associates can undergo training, perform equipment maintenance or plant maintenance. There’s a wide variety of productive activities our associates can engage in.”

The temporary shutdowns may affect Miami Valley Honda dealerships, even though they say they haven’t experienced any issues yet.

“It won’t take dealers long to sell out of inventory,” said Dan Nagel, general manager of White Allen Honda in Dayton. “We’re looking at a lighter inventory in April, May and June because spring is our busiest selling season. It’s just a wait-and-see game.”

Hidy Honda in Beavercreek has tripled up on fast-moving parts in anticipation of problems, Dealership Manager Joe Hidy said.

“I don’t think anybody has felt the impact yet,” he said. “All of the dealers know there’s going to be some degree of impact, but nobody knows how bad it’s going to be. We just haven’t been given anything concrete.”

In addition to inventory issues, there may also be a paint shortage to deal with.

“We’ve been told that black and red are going to be tough to come by in the coming months,” Hidy said. “A pigment factory in Japan was also apparently impacted.”

Bill Marine Honda in Springfield usually sees a 20 to 25 percent spike in sales in the spring and things have been running smooth as the dealership gears up, said General Manager Archie Teverbaugh.

“We really haven’t heard much from Honda,” he said. “Actually (the parts shortage) hasn’t affected us a bit. Customers come in and there’s not a shortage of anything and we’ve been able to satisfy their needs.”

Joe Morgan Honda in Monroe opened in November and hasn’t seen any drop-off in business or problems with inventory.

“Right now we have a good supply,” said Mark Barry, the dealership sales manager. “It hasn’t affected us yet.”

Contact this reporter at (937) 225-2435 or kpaxson@coxohio.com.

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