Honda Cuts Production Again by 119,000 Cars

Japanese carmaker Honda has just announced it will reduce production by an additional 119,000 vehicles due to lowering demand for vehicles as a result of the financial crisis. Honda already announced in November it would reduce production by 71,000 cars. The Honda November 08 report can be found here. The new production cuts will be reduced evenly across 5 plants until March 31 09 across North America. Honda continues to struggle with all other carmakers. Honda sales were down 32% alone in November 08; aggregately sales are down 5% so far in 2008 for Honda. However, Honda Pilot sales are up 4.5% The Honda stock opened about 5% down overnight from yesterday because of the production cut news. No further job cuts or any other cost reduction measures have been announced, but it wouldn’t be surprising to see yet more job cuts as a result of the scaled back production.