Honda of North America officials announced Monday afternoon it is extending the production suspension previously announced for all of its automobile, engine and transmission plants in the U.S. and Canada through May 1, citing the “unprecedented economic impact of the fast-changing COVID-19 situation.”
The company first began its automobile production suspension March 23.
The latest announcement effects each of the local Honda 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 actions impact approximately 8,000 production associates in Ohio.
“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 Monday.
“This includes temporarily implementing No Work Available (NWA) days during the continued production suspension in our plants.”
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 substantial income replacement during this temporary suspension of production,” he related.
All Honda associates also will continue to receive their Honda benefits during this time.
In a release, officials said 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 Monday.
Honda continues to evaluate conditions and make temporary adjustments to its production operations in the U.S. and Canada.
“In undertaking these production adjustments, Honda is continuing to manage its business carefully through a measured approach to sales that aligns production with market demand,” officials said.
Last week, American Honda also reported the effects of the COVID-19 pandemic on its March auto sales. Company officials said by the end of the month, American Honda sales fell 48 percent in March, which followed strong sales for Honda and Acura in the first two months of 2020 and in early March.
“Both brands off to a strong start in the first 10 days of March, the COVID-19 crisis quickly took its toll on March and first quarter sales results.
“Considering the severe market impact, most Honda and Acura products continued to perform well in March. However, combined with declining demand from cautious consumers, hundreds of Honda and Acura dealers were closed in the second half of March in compliance with mandates imposed on businesses by state and local governments.”
Honda and Acura dealers that were able to remain open did so, focusing their efforts on taking care of existing customers through vehicle service, maintenance and repair, while preserving the health and safety of their employees, officials said.
In response to the pandemic, Honda and Acura have offered to help customers who have financed their vehicles through Honda Financial Services or Acura Financial Services with payment extensions and deferrals, as well as available late fee waivers.