Honda North America officials announced Thursday that the company is extending its the automobile production suspension in North America for one week, and also is adding an additional week to a two-week furlough period for business operations staff in the U.S.
Representatives said these adjustments were being made as a “result of the unprecedented economic impact of the fast-changing COVID-19 pandemic continues” and the steep decline in sales experienced across the automobile and powersports industries.
The production suspension for automobile, engine and transmission plants in North America now continues through May 8. Honda’s automobile production suspension in North America began March 23.
The decision effects 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.
In addition, the majority of salaried and support associates at Honda operations in the U.S. will be furloughed for an additional week and will return to work on May 8 or 11 depending on location, with Ohio employees returning May 11. This is an extension of the previously announced temporary furlough that began April 19.
“Honda continues to evaluate business conditions and make temporary adjustments to its production and business operations in North America,” officials said Thursday.
“In addition to the impact of COVID-19 on the marketplace, stay-at-home orders remain in many cities and states, impeding the ability of consumers to purchase new vehicles.
As a result, Honda must continue to take steps that align product supply and business expenses with market demand.”
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, representatives said.