WSJ: Honda Motor:Expect Domestic Plants To Return To Normal By Year-End

TOKYO (Dow Jones)--Honda Motor Co. (7267.TO) said Monday that it expects its domestic auto plants to return to production levels planned before the March 11 earthquake by the end of the year.

The car maker's domestic plants will remain at half the initially planned volume until the end of June, though production levels after July are still unclear and will depend on parts supplies. The outlook for overseas factories also remains uncertain, Honda said.

Plants in North America, the U.K., Turkey and the Philippines are operating at 50% of their initially planned levels, while the company has also reduced output volumes at factories in China and Thailand, the car maker said.

The quake and tsunami disrupted the company's parts supply chain and a parts shortage has kept production at reduced levels.

Toyota Motor Corp. (7203.TO) said last Friday that it doesn't expect its domestic and overseas factories to be back to normal until November at the earliest.

Source;
http://online.wsj.com/article/BT-CO-20110424-702114.html

Honda altering production schedule in Alliston

Reducation expected to continue until May 6
By Marg. Bruineman, the Barrie Examiner

Reduced daily production levels at Honda Canada's Alliston facility has been extended as a result of a parts shortage from the earthquake-ravaged Japan.

"Production adjustments continue until May 6, although adjustments vary," said Honda's Lori Van Valkenburg in Alliston. "All associates have the opportunity to work their entire shift and work is being provided for them."

They also have the option of taking vacation time or time without no pay with no penalty.
On Monday, she said, associates worked six hours in production in the weld department in Plant 2.

But the expectations are that everything will return to normal after that.

"We anticipate that additional production adjustments will continue after that date," the company announced in a press statement.

The car builder has reduced the number of cars it builds as a result of last month's devastating earthquake and tsunami in Japan. The natural disaster, which has claimed about 14,000 lives, impacted both the car builder and its suppliers in Japan.

Most of the cars supplied to the North American market are built in North America. And a majority of the parts are sourced here.

About 4,200 people work at Honda Canada's Alliston facility, which has two car-building plants and an engine plant.

The bulk of production are Honda Civics (sedan, coupe, and Si sedan & coupe) along with the Acura MDX, Acura ZDX, Acura CSX.

But some of the parts are shipped in from Japan, where several companies are struggling to get back to production. As a result, there's limited supply of parts available for car building in Alliston.

Honda's car building plants in Japan all resumed limited production last week, operating at about 50% capacity.

Source;
http://www.thebarrieexaminer.com/ArticleDisplay.aspx?e=3080274

Honda Canada Ordering Delays

Well, the fallout from Japan's disaster is official, incoming units have been delayed indefinitely. We normally have about 9-12 pages of incoming units and we are now down to about 2 pages of stock.

Incoming 2012 Honda Civic's have been taken right out, so I am not sure if Honda will be delaying the launch date of April 22nd, 2011, although I do know that some dealerships in the US have

CRV's are about the only thing that I think dealerships with have in adequate stock.

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Honda Canada

Honda to cut output at U.S., Canadian auto plants

DETROIT (Reuters) - Honda Motor Co (7267.T: Quote) will cut production at its U.S. and Canadian automotive plants starting Wednesday due to disruptions in the supply of auto parts after the Japanese earthquake more than two weeks ago. The temporary changes to the production schedule will vary plant by plant based on the availability of certain parts, Honda spokesman Jeffrey Smith said. He declined to detail the changes in production at individual plants. The automaker operates plants in Canada and three states in the United States. Honda relies on North American suppliers for more than 80 percent of the parts it uses to build vehicles in North America. Honda has suspended production at its two plants in Japan until at least April 3. Smith said most of the company's Japan-based parts suppliers have resumed production or are ready to start. "This is a very fluid situation," Smith said. He added: "We are working with a few suppliers who have yet to resume production to reestablish operations and at the same time, we are evaluating additional sources for some parts." The March 11 earthquake, tsunami and nuclear crisis in northern Japan have left the global auto industry struggling to manage a ripple effect across its production and supply base. Earlier Tuesday, Toyota Motor Corp (TM.N: Quote)(7203.T: Quote) told its dealers to curtail orders of certain replacement parts to ensure an adequate supply. Source; http://ca.reuters.com/article/businessNews/idCATRE72S74M20110329

Honda Motor to produce gasoline-electric hybrid cars in China

Nov. 8, 2010 (China Knowledge) - Honda Motor Co, a major Japanese car maker, announced last Friday that it plans to start producing gasoline-electric hybrid cars in China in the future, sources reported.

This move is part of the company's plans to explore the Chinese hybrid car market, said Seiji Kuraishi, head of Honda's China operation while attending a groundbreaking ceremony of its fifth joint-venture plant in China. He did not disclose the model of the hybrid cars and the schedule of production.

The Tokyo-based automaker expects its overall annual production capacity in China to reach 890,000 units by 2013.

The new plant, located in Wuhan, Hubei Province, is owned by Dongfeng Honda Automobile Co Ltd, a 50:50 joint venture between Honda Motor Co Ltd and China's Dongfeng Motor Groupa class="red" href="http://www.chinaknowledge.com/Finance/StockChart.aspx?Type=HKG&StockCode=0489" target="_blank">0489>, is planned to put into operation in 2012, and will have annual production capacity to 100,000 units in the initial phase, said executives in Honda.

Honda has already started selling the hybrid version of Honda Civic compact car in China that is imported from Japan. The company announced earlier this year that it will launch two hybrid models, the Insight and CR-Z, in China in 2012, and the two models will also be imported from Japan.

Source;
http://www.chinaknowledge.com/Newswires/News_Detail.aspx?type=1&cat=RND&NewsID=%2038463

2 millionth Alabama-built Honda rolls off assembly line

From left, Honda associates David Lyner, Doris Ashworth, Robert Dunham, Sandy Miller, Michael Tuggle and Michael Jones celebrate the production of the two millionth vehicle at Honda Manufacturing of Alabama.

Associates at Honda Manufacturing of Alabama LLC (HMA) on September 3 reached a production milestone at 8:28 a.m. with the completion of the 2 millionth Honda vehicle and V-6 engine built in Alabama.

The Taffeta White 2011 Pilot EXL Touring, was driven off the line by HMA associate Sandy Miller of Oxford, Ala. Passengers in the vehicle included Honda associates: Robert Dunham, Goodwater; Michael Jones, Trussville; David Lyner, Oxford; Doris Ashworth, Goodwater; and Michael Tuggle, Gardendale.

The roll-off of HMA's 2 millionth vehicle comes less than nine years after the start of mass production at the $1.4 billion facility on November 14, 2001.

"The commitment and dedication of each associate has allowed HMA to quickly reach this production milestone and meet the needs of a record number of customers," said Nobu Sanui, HMA president and CEO. "In October of 2006, we celebrated building the one millionth HMA Honda. And today, less than four years later, we have built our two millionth Honda in 'Sweet Home Alabama.'"

HMA is the sole North American production source of the Pilot sport utility vehicle, the Odyssey minivan, the Ridgeline pickup and the V-6 engines that power each vehicle. HMA also shares production of the Accord V6 Sedan with the Marysville Auto Plant in Marysville, Ohio.

On August 31, 2010, HMA began production of the all-new 2011 Odyssey minivan, which is scheduled to arrive at dealerships in late September. HMA employs more than 4,000 associates at its 3.5-million-square-foot Lincoln facility and has the capacity to produce as many as 300,000 vehicles and engines each year.

Source;
http://www.reliableplant.com/Read/26381/Alabama-built-Honda-assembly

Honda aims to reduce its Japanese car production by 4% in October

To cope with the dreaded end of government subsidies, Honda Motor Co. aims to reduce its Japanese car production by 4% in October compared with the July-September quarter.

A double-digit drop in domestic car sales is expected when subsidies expire on September 30. Media reports in Japan reveal that Toyota Motor Corp. told its suppliers that its domestic daily production could decrease by around 20% from October when compared to current levels. The government’s stimulus measures have benefited Toyota the most because the next-generation vehicles such as hybrids are favored.

Toyota’s Prius model, its topseller, dominates this segment. Last Tuesday, Nikkei business daily reported that Toyota is cutting production at its Saitama factory to 1,800 units a day in October from the current 1,950 units. This was later confirmed by a Honda spokeswoman. But when compared to figures a year ago, this would still be 24% higher.

Toyota had suffered due to weak exports – a result of the economic crisis. The spokeswoman also said that output at its other major plant, the Suzuka factory, will be the same. This means that overall domestic output would drop only 4%, a move that is in line with Honda’s revised financial plans. Japan’s government subsidies will soon end but there is a separate scheme offering tax incentives on purchases of cleaner vehicles. The tax incentives will be effective until March 2012.

Source;
http://www.4wheelsnews.com/honda-aims-to-reduce-its-japanese-car-production-by-4-in-october/#more-9768

The Pretty Side Of Honda

There has been a lot of, well, criticism, of Honda on these pages lately, including allegations that Honda had lost it. So far, more that fifty of the Best & Brightest offered advice on how to save the company from certain annihilation.

Today’s Nikkei says “domo arigato gozaimashita” for all the support, and runs a different story: “Honda Motor Co. has emerged from the economic turmoil at the head of the pack, thanks in good part to a nimble production network that can meet the latest consumer preferences at relatively low cost.” Here is why.

According to the Nikkei, Honda retooled its U.S. production operations in a mere six months last year, responding to the sudden demand for smaller vehicles. As the chart shows, the realignment translated into a substantial share of the U.S. subcompact market.

It is also the reason for Honda being “the only major Japanese maker likely to score a net profit” in the current fiscal year, says the Nikkei.

Capacity utilization rates at some facilities have been boosted by as much as 20 percent. In the current fiscal year, which ends March, Honda will most likely report an overall utilization rate of 79 percent, highest among Japan’s three largest automakers. In the industry, anything above 80 percent utilization is considered healthy. Given the worldwide capacity utilization, estimated to be between 50 and 60 percent, 79 percent are short of a miracle.

Honda can make small and large vehicles on the same production lines. All it needs is a quick change of welding pieces, paint nozzles and other components.

Not only the Nikkei is impressed with Honda, the stock market likes Honda as well. At the time of this typing, Honda’s stock (HMC) changed hands for $36.90 at the New York Stock Exchange, eclipsing its pre-carmageddon highs.

Honda may have “ugly styling highlighted by uglier front grilles; a hybrid system that simply isn’t as advanced and effective as Toyota’s; a bloated Accord; no new direct injection engines; lots of muddling about future EVs; and a misplaced optimism about fuel cells,” as Edward Niedermeyer wrote it.

However, Honda’s stock chart, a market capitalization of $67.7b, and a near-pornographic P/E of 47.92 on the other hand are a sight to be seen. Maybe you shouldn’t have bought the Insight. But you would be very pleased if you would have had the foresight to buy the Honda stock in December of 2008. You could have doubled your money.

Or, looking at the chart and all that’s wrong with the company, maybe it’s time to short HMC?

Source;
http://www.thetruthaboutcars.com/the-pretty-side-of-honda/#more-342097

Oldest Honda plant shifts to meeting green demand

SAYAMA, Japan — Honda has adjusted production as global demand shifts to small and greener models, turning its oldest Japanese plant into an assembly line for the Fit subcompact for the U.S. market.
But the Saitama plant, which employs 5,500 people, is also showing signs of hard times - running just a single shift instead of the previous two shifts, halving overall plant production to 1,100 vehicles a day.
The Honda Motor Co. factory, shown to reporters Wednesday, used to mostly make bigger models like the Odyssey minivan and Accord sedan.
The plant, which opened in 1964 in this Tokyo suburb, has successfully responded to shifting consumer tastes, as the recent rise in gas prices and concerns about global warming make smaller models like the Fit more in demand, according to Honda.
It began mass-producing the Fit for U.S. export in April, transferring some of that production from another Japanese plant, in Suzuka, central Japan, which is too busy these days churning out the hit Insight hybrid.
Tomonori Arai, a general manager, said Honda was able to efficiently move production because it has standardized robotics parts and other assembly procedures.
The efforts to unify assembly line methods also make it easier to start making cars at new plants, including those abroad. But there are no plans so far to start making the Fit in the U.S., Arai said.
Before such efforts, which began several years ago, it required more than seven months to launch a new product at Saitama. Today, it was able to start Fit production in just three months.
That underlines ongoing efforts at Japanese automakers to cut costs and stay nimble as this nation's top industry gets hammered by the global downturn, especially the slump in the critical North American market.
During a tour of the plant, Honda demonstrated how the same line was able to produce different models smoothly.
It also showed how robotics parts on big swinging arms got changed automatically in a matter of minutes, so that the same line could switch from putting together a Freed hatchback to an Odyssey.
Other automakers, including Japanese rival Toyota Motor Corp., boast flexible production methods and are shifting to smaller models and hybrids.
Honda, with its strength in small models, stayed in the black for the fiscal year ended March 31, and has fared relatively better than Toyota, which sank to its worst yearly loss.
Still, before the financial crisis, the Saitama plant used to have two worker shifts for each of its two assembly lines, keeping the plant running from early in the morning until near midnight.
Now, it is down to one daytime shift.
The plant has enough workers for two shifts, but global demand would have to pick up significantly, boosting needs per line by about 350 vehicles a day to revert to two shifts, Arai said.
"I wish I knew when this could happen," he said. "We have no plans now to return to two shifts."

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http://www.google.com/hostednews/canadianpress/article/ALeqM5jZjw78EB8npqzwd2v6evapt_gW3g

Honda May Pass Chrysler in North America Production

May 12 (Bloomberg) -- Honda Motor Co., Japan’s second- biggest automaker, may build more vehicles than bankrupt Chrysler LLC in North America this year, further weakening Detroit’s grip on its home market.
Honda narrowed the gap to 17,011 vehicles at the end of April from 236,645 a year earlier, and with most Chrysler plants shut for as long as 60 days analysts expect the Japanese automaker to overtake its rival. Honda may also surpass Chrysler in U.S. sales to trail only bankruptcy-threatened General Motors Corp., Toyota Motor Corp. and Ford Motor Co.
“There’s a sea change under way,” said Michael Robinet, an analyst at forecaster CSM Worldwide in Northville, Michigan. “This crisis with Chrysler and GM has acted as an accelerant to the systemic change that was already occurring.”
Toyota passed Chrysler in U.S. sales in 2006 and then Ford in 2007, as Japanese automakers lured customers with more fuel- efficient vehicles. The big three U.S. automakers’ market share has plunged to 44.4 percent this year, from more than 70 percent a decade ago, while overall sales have slumped to the lowest volume in about three decades.
Honda, fifth in the U.S. since 1988, has outsold Chrysler this year as of April. Its sales in the country slid 32 percent to 332,014, compared with a 46 percent drop for Auburn Hills, Michigan-based Chrysler to 323,890. Overall U.S. sales are down 37 percent through the first four months of the year.
Chrysler Plunge
“Market share isn’t something we target,” said David Iida, a spokesman for Honda’s U.S. unit, based in Torrance, California. “We’re very committed to local production, irrespective of what other companies are doing.”
The automaker fell 1.4 percent to 2,860 yen at the close of Tokyo trading. The stock has risen 50 percent this year.
Industrywide North American car and light-truck production plunged 49 percent through April, with Chrysler leading declines among major manufacturers, according to Haig Stoddard, an IHS Global Insight analyst. Chrysler’s production in the period fell 57 percent to 322,773, based on company figures.
Honda built 305,762 autos at assembly plants in the U.S., Canada and Mexico through last month, down 40 percent from a year ago. The maker of Civic and Accord cars has U.S. plants in states including Ohio, Indiana and Alabama.
Chrysler, hoping to emerge from bankruptcy within 60 days as a new company led by Fiat SpA, halted work at most plants on May 4 while it reorganizes. The company also said it’s closing six factories that won’t be part of the Chrysler-Fiat deal.
Foreign Production Gains
“Honda and Toyota are both likely to outbuild Chrysler,” said John Sousanis, director of industry data for Ward’s Automotive Group. “We have each of them making 1 million vehicles or a bit more in North America this year, and Chrysler building just under 1 million -- and that’s before Chrysler announced its plan to shut down plants.”
Next year, Japanese, German and South Korean automakers will likely build more than half of the vehicles assembled in the U.S., outstripping local manufacturers for the first time, said CSM’s Robinet.
By 2011, Asian and European automakers will have more overall auto-assembly capacity in North America than U.S. competitors, said economist Kim Hill, with the Center for Automotive Research in Ann Arbor, Michigan.
“The market has matured,” said Hill. It “is moving away from the traditional Big 3 model to one that’s much more international.”
To contact the reporters on this story: Alan Ohnsman in Los Angeles aohnsman@bloomberg.net Last Updated: May 12, 2009 06:40 EDT

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http://www.bloomberg.com/apps/news?pid=20601080&sid=aDXqt5HGPyMY&refer=asia#