Honda is the first automaker to shut down factories due to coronavirus

  • Honda will suspend production at six plants on the US, Canada, and Mexico for six days, starting March 23, as the coronavirus outbreak worsens.
  • The company said output would be reduced by 40,000 vehicles.
  • Honda said it would continue to pay approximately 27,600 workers.
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On Wednesday, Honda became the first major automaker with operations in the US to shut down factories amid a worsening COVID-19 coronavirus outbreak.

“Honda will suspend production for six days beginning March 23, with current plans to return to production on Tuesday, March 31,” the company said in a statement.

“Honda transmission and engine plants in North America that serve Honda auto plants also will suspend production for the same time period. Honda will reduce production by approximately 40,000 vehicles during these six days.”

The shutdown will also affect Honda’s factory in Mexico as well as two factories in Canada. In total, production should be reduced by 40,000 vehicles, the company said.

Honda added that during the shutdown, it would continue to pay approximately 27,600 affected workers.

“Honda will utilize this time to continue deep cleaning of its production facilities and common areas to further protect associates upon their return to the plants,” the carmaker said.

“This production adjustment also will allow Honda associates to better prepare and adjust family plans in relation to regional directives to close schools to stop the spread of the COVID-19 virus,” Honda added.

“This will enable working parents to determine how best to manage the needs of children staying home from school and other required lifestyle adjustments.”

Thus far during the novel coronavirus outbreak, only Volkswagen has briefly shut down a factory, its plant in Tennessee for one day to allow workers to prepare for coronavirus disruptions.

General Motors, Ford, and Fiat Chrysler Automobiles (FCA) on Tuesday announced that, in cooperation with the United Auto Workers, they would engage in partial, rotating shutdowns of factories to adhere to federal government protocols for coronavirus protection.

Source: BI



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