Honda North America officials announced Wednesday a two-week furlough that will be required for business operations staff, including the majority of salaried and support associates in the U.S., in response to the continued steep decline in sales across the automobile and powersports industries.
For U.S. associates outside of California, the first day of the furlough is Sunday, April 19. Associates are scheduled to return to work May 4.
Last week, the company also announced the continuation of its production suspension for all of its automobile, engine and transmission plants in the U.S. and Canada through May 1.
The production suspension began March 23 and effects approximately 8,000 production associates in Ohio, including the following local facilities — the Marysville and East Liberty auto plants, the Performance Manufacturing Center at Marysville, Honda Transmission Mfg. at Russells Point and the Anna Engine Plant.
“These unprecedented circumstances require that we take some difficult actions in order to cope with the economic impact of the COVID-19 pandemic,” Chris Abbruzzese from Honda North America Corporate Communications said Wednesday.
“This includes temporarily furloughing a majority of our salaried and support associates for a planned two-week period.”
Abbruzzese said the company has shared with associates the process they can take to apply for state and federal benefits. The recently enacted Coronavirus Aid, Relief, and Economic Security Act (CARES), along with state benefits, will provide associates income replacement during this temporary furlough.
All Honda associates will continue to receive their Honda benefits during this time.
In addition to the impact of the pandemic on the marketplace, stay-at-home orders in many cities and states prevent consumers in a number of markets from purchasing new vehicles.
“As a result, Honda must continue to suspend production in order to align product supply with a lack of market demand,” representatives said.
The company continues to evaluate conditions during the quickly-changing COVID-19 pandemic and make temporary adjustments to its production and business operations in North America.