2011 Honda Element car style photos and reviews
Showing posts with label Honda. Show all posts
Showing posts with label Honda. Show all posts
Cuts Come Again!
Honda has announced that its workers will take 14 additional days off from June to August due to disruptions in manufacturing operations driven by parts shortages. The parts shortage came on the back of earthquake and tsunami in Japan on March 11 that damaged many parts supplying companies’ plants and paralyzed the power supply system.
The workers will take one extra day off in June, 10 days in July and 3 days in August. However, the workers need to work extra days in the latter half of the fiscal year to make up for the production shortfall.
The plants affected by the latest move include auto plants in Saitama and Suzuka and a motorcycle plant in Hamamatsu. Honda has informed the union that the workers may need to take additional days off in the coming months if the parts shortages continue.
Recently, Honda revealed that it will halve production at its Sumare, Brazil plant due to the same problem. The output at the plant will be reduced to 300 units per day from the current 600 units per day and production shifts will be curtailed to two from three. The company has already retrenched 400 employees at the plant.
Honda has also alerted its U.S. dealers about supply shortages of its popular models, Civic compact and CR-V small SUV, due to lower availability of parts that will support the required production level to meet their demand.
Apart from these two models, Honda stated that it will cut supply of Acura luxury cars as well as TSX wagon and the RL sedan until later in the year. It also revealed that it will be able to import only a limited number of Japan-built cars in the U.S, which include Fit subcompact, CR-Z, Insight and Civic gas-electric hybrids until later in the year.
Recently, the company revealed that domestic production volume will remain at approximately 50% of the original production plan until the end of June. However, it will be normalized before the end of 2011.
BREAKING NEWS: Honda Cuts
Honda Brazil has laid off 400 workers at its Sumare plant and will reduce output there by half due to a shortage of electronic parts from Japan. The lay-offs equate to 12 percent of staff at the unit.
The plant will cut daily output to 300 units from 600 and reduce its three shifts to two starting in June, Honda said in an e-mailed statement.
Shipments of auto parts to several countries were delayed as Japanese suppliers were affected by the March 11 earthquake and tsunami, the company said.
“Honda hopes to return to its regular activity level as soon as the situation goes back to normal”, Honda said.
The automaker forecasts a drop of 30 percent for production and 20 percent for sales in Brazil this year, O Estado de S. Paulo newspaper reported today, citing Paulo Takeuchi, director of the automaker in the country.
Brilliant advertising method by Honda
Photo found on Autowriters.com Newsletter May 2011, taken by Vancouver photographer Maurice Li http://mauriceli.com/ which I went to his Flikr page for http://www.flickr.com/photos/mauriceli/5673376660/sizes/o/in/photostream
Louis Vuitton settles lawsuit against Honda Canada
Louis Vuitton Malletier SA said it has reached a deal with Honda Canada and its advertising agency Grip Ltd regarding a claim filed in the Federal Court of Canada over the use of Louis Vuitton marks in an ad campaign for Honda's Accord Crosstour sport utility vehicle.
Details of the settlement were not disclosed, although Louis Vuitton said it received a payment from Grip.
Honda could not immediately be reached to comment.
The campaign, which ran in print and on television in late 2009 and early 2010, featured luggage bearing images that Louis Vuitton claimed infringed on its Toile Monogram and Damier marks, Louis Vuitton said.
LVMH owns handbag maker Louis Vuitton, Hennessy cognac and Moet & Chandon champagne.
Louis Vuitton settles lawsuit against Honda Canada
Louis Vuitton Malletier SA said it has reached a deal with Honda Canada and its advertising agency Grip Ltd regarding a claim filed in the Federal Court of Canada over the use of Louis Vuitton marks in an ad campaign for Honda's Accord Crosstour sport utility vehicle.
Details of the settlement were not disclosed, although Louis Vuitton said it received a payment from Grip.
Honda could not immediately be reached to comment.
The campaign, which ran in print and on television in late 2009 and early 2010, featured luggage bearing images that Louis Vuitton claimed infringed on its Toile Monogram and Damier marks, Louis Vuitton said.
LVMH owns handbag maker Louis Vuitton, Hennessy cognac and Moet & Chandon champagne.
RECALL: Honda Airbags
Honda and Acura are expanding an old recall from 2008 to include an additional 833 000 cars, in total 1.6 million cars have been recalled for an airbag issue. The latest recall covers vehicles that potentially had faulty Honda parts installed following a collision. Due to the fact that Honda cannot properly identify which cars had faulty parts, Honda must recall the entire batch. Dangerous airbag inflators are the cause as in the case of an accident, airbags can deploy with too much pressure causing increased rates of injury and death.
Cars included in the recall are certain 2001 and 2002 Honda Civics and Accords, the 2002 Odyssey, the 2003 CR-V and 2002-2003 Acura CL/TL cars. It is believed only 2 430 vehicles contain the faulty parts.
Recall notices will be released later this month via mail.
RECALL: Honda Airbags
Honda and Acura are expanding an old recall from 2008 to include an additional 833 000 cars, in total 1.6 million cars have been recalled for an airbag issue. The latest recall covers vehicles that potentially had faulty Honda parts installed following a collision. Due to the fact that Honda cannot properly identify which cars had faulty parts, Honda must recall the entire batch. Dangerous airbag inflators are the cause as in the case of an accident, airbags can deploy with too much pressure causing increased rates of injury and death.
Cars included in the recall are certain 2001 and 2002 Honda Civics and Accords, the 2002 Odyssey, the 2003 CR-V and 2002-2003 Acura CL/TL cars. It is believed only 2 430 vehicles contain the faulty parts.
Recall notices will be released later this month via mail.
Honda Alliston Production Slows
Honda Alliston Production Slows
Canadian Acura/Honda Sales in April 2011
Combined April sales of 12,269 units by the Honda and Acura divisions represented a 6% decrease over last year's sales. The Honda Automobile Division reported April sales of 10,908 units, down 4% from last year. Honda's CR-V compact sport-utility vehicle had record April sales, up 10% from last year. The Acura Division reported April sales of 1,361 units, down 20% over last year.
"The new 2012 Civic just went on sale toward the end of April with strong market demand, which helped us achieve Civic sales of 5,224, in line with sales from last year," said Jerry Chenkin, executive vice president of Honda Canada Inc.
"Although Civic production has been significantly reduced due to a shortage of critical parts from Japan, we will be doing our best to meet the demand for the new Civic through the rest of the spring and summer months. With production issues that may affect availability of certain Honda and Acura products through the coming months, we sincerely apologize for any unfortunate delay our customers might encounter in taking delivery of their new car or truck, and we appreciate their understanding of this situation. Our dealers will take every step to provide the best level of service while customers wait."
Honda Canada Inc. has sold more than 3.4 million Honda and Acura passenger cars and light-duty trucks in Canada over the past 38 years. More than 94% of the Honda and Acura vehicles sold in Canada in April were produced at the company's assembly plants in North America, up from 93% the same month last year.
Canadian Acura/Honda Sales in April 2011
Combined April sales of 12,269 units by the Honda and Acura divisions represented a 6% decrease over last year's sales. The Honda Automobile Division reported April sales of 10,908 units, down 4% from last year. Honda's CR-V compact sport-utility vehicle had record April sales, up 10% from last year. The Acura Division reported April sales of 1,361 units, down 20% over last year.
"The new 2012 Civic just went on sale toward the end of April with strong market demand, which helped us achieve Civic sales of 5,224, in line with sales from last year," said Jerry Chenkin, executive vice president of Honda Canada Inc.
"Although Civic production has been significantly reduced due to a shortage of critical parts from Japan, we will be doing our best to meet the demand for the new Civic through the rest of the spring and summer months. With production issues that may affect availability of certain Honda and Acura products through the coming months, we sincerely apologize for any unfortunate delay our customers might encounter in taking delivery of their new car or truck, and we appreciate their understanding of this situation. Our dealers will take every step to provide the best level of service while customers wait."
Honda Canada Inc. has sold more than 3.4 million Honda and Acura passenger cars and light-duty trucks in Canada over the past 38 years. More than 94% of the Honda and Acura vehicles sold in Canada in April were produced at the company's assembly plants in North America, up from 93% the same month last year.
PR: American Honda/Acura April 2011 Sales
American Honda Motor Co., Inc., posted April sales of 124,799, an increase of 5.7 percent based on the daily selling rate compared to April 2010 results of 113,697, the company announced today. American Honda year-to-date sales of 432,777 represent an increase of 14.6 percent based on the daily selling rate.
Record-breaking April sales of the CR-V, Fit and Insight pushed April sales of the Honda Division monthly sales to 113,195, an increase of 5.9 percent versus April 2010. The CR-V crossover utility vehicle was up 25.3 percent for the month to an April record of 21,683. Sales of the sub-compact Fit increased by 66.3 percent to an April record of 8,116 and the Insight hybrid increased by 35.4 percent to an April record of 2,644 units. Sales of Honda cars increased 6.7 percent overall for the month to 67,536, with Accord and Civic selling 30,310 and 26,777, respectively, for April.
"Honda had another very strong month led by Accord, Civic and CR-V. In fact, sales of the versatile and refined Honda CR-V, America's best-selling SUV, broke records for the third consecutive month," said John Mendel, executive vice president of sales for American Honda. "While our current dealer supply of vehicles remains adequate, we know that production constraints may start to affect sales into the summer months. However, we are working closely with our dealers, and together we are committed to continue our focus to support the needs of our customers."
Acura Division April 2011 sales increased 4.2 percent to 11,604 compared to April 2010. The MDX luxury sport utility vehicle led the division with sales of 3,912, an increase of 1.4 percent over April 2010.
Record-breaking April sales of the CR-V, Fit and Insight pushed April sales of the Honda Division monthly sales to 113,195, an increase of 5.9 percent versus April 2010. The CR-V crossover utility vehicle was up 25.3 percent for the month to an April record of 21,683. Sales of the sub-compact Fit increased by 66.3 percent to an April record of 8,116 and the Insight hybrid increased by 35.4 percent to an April record of 2,644 units. Sales of Honda cars increased 6.7 percent overall for the month to 67,536, with Accord and Civic selling 30,310 and 26,777, respectively, for April.
"Honda had another very strong month led by Accord, Civic and CR-V. In fact, sales of the versatile and refined Honda CR-V, America's best-selling SUV, broke records for the third consecutive month," said John Mendel, executive vice president of sales for American Honda. "While our current dealer supply of vehicles remains adequate, we know that production constraints may start to affect sales into the summer months. However, we are working closely with our dealers, and together we are committed to continue our focus to support the needs of our customers."
Acura Division April 2011 sales increased 4.2 percent to 11,604 compared to April 2010. The MDX luxury sport utility vehicle led the division with sales of 3,912, an increase of 1.4 percent over April 2010.
PR: American Honda/Acura April 2011 Sales
American Honda Motor Co., Inc., posted April sales of 124,799, an increase of 5.7 percent based on the daily selling rate compared to April 2010 results of 113,697, the company announced today. American Honda year-to-date sales of 432,777 represent an increase of 14.6 percent based on the daily selling rate.
Record-breaking April sales of the CR-V, Fit and Insight pushed April sales of the Honda Division monthly sales to 113,195, an increase of 5.9 percent versus April 2010. The CR-V crossover utility vehicle was up 25.3 percent for the month to an April record of 21,683. Sales of the sub-compact Fit increased by 66.3 percent to an April record of 8,116 and the Insight hybrid increased by 35.4 percent to an April record of 2,644 units. Sales of Honda cars increased 6.7 percent overall for the month to 67,536, with Accord and Civic selling 30,310 and 26,777, respectively, for April.
"Honda had another very strong month led by Accord, Civic and CR-V. In fact, sales of the versatile and refined Honda CR-V, America's best-selling SUV, broke records for the third consecutive month," said John Mendel, executive vice president of sales for American Honda. "While our current dealer supply of vehicles remains adequate, we know that production constraints may start to affect sales into the summer months. However, we are working closely with our dealers, and together we are committed to continue our focus to support the needs of our customers."
Acura Division April 2011 sales increased 4.2 percent to 11,604 compared to April 2010. The MDX luxury sport utility vehicle led the division with sales of 3,912, an increase of 1.4 percent over April 2010.
Record-breaking April sales of the CR-V, Fit and Insight pushed April sales of the Honda Division monthly sales to 113,195, an increase of 5.9 percent versus April 2010. The CR-V crossover utility vehicle was up 25.3 percent for the month to an April record of 21,683. Sales of the sub-compact Fit increased by 66.3 percent to an April record of 8,116 and the Insight hybrid increased by 35.4 percent to an April record of 2,644 units. Sales of Honda cars increased 6.7 percent overall for the month to 67,536, with Accord and Civic selling 30,310 and 26,777, respectively, for April.
"Honda had another very strong month led by Accord, Civic and CR-V. In fact, sales of the versatile and refined Honda CR-V, America's best-selling SUV, broke records for the third consecutive month," said John Mendel, executive vice president of sales for American Honda. "While our current dealer supply of vehicles remains adequate, we know that production constraints may start to affect sales into the summer months. However, we are working closely with our dealers, and together we are committed to continue our focus to support the needs of our customers."
Acura Division April 2011 sales increased 4.2 percent to 11,604 compared to April 2010. The MDX luxury sport utility vehicle led the division with sales of 3,912, an increase of 1.4 percent over April 2010.
Honda Profit Skids
Honda revealed a 38% fall in profit to ¥44.55 billion ($536 million) or ¥24.72 per share (30 cents per share) in the fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18 billion or ¥39.78 per share in the same quarter of prior fiscal year.
The decline in profit was attributable to unfavorable currency translation effects, higher selling, general and administrative (SG&A) expenses and the tsunami and earthquake in Japan. These more than offset the positive impact from cost reduction measures, lower R&D expenses, increase in sales volume (except in the Automobile segment) and model mix, and operating income related to licensing agreements.
Consolidated net sales and other operating revenues slid 3% to ¥2.21 trillion ($26.62 billion) on the back of same factors outlined above, despite increased revenues in the motorcycle business and revenues related to licensing agreements. However, at constant exchange rates, revenues increased 3.3%. Consolidated operating profit plummeted 52% to ¥46.21 billion ($556 million) from ¥96.10 billion due to the same factors affecting the net income.
Segment Performance
Sales in the Automobile segment slipped 1.6% to 860,000 units. In Japan, sales decreased 22% to 142,000 units. However, outside of Japan, sales increased 4% to 718,000 units as higher sales in North America offset the lower sales in other countries.
Revenues from external customers in the segment dipped 4% to ¥1.65 trillion due to unfavorable currency translations. The segment had an operating loss of ¥39.18 billion compared with an operating profit of $24.00 billion a year ago.
Sales in the Motorcycle segment appreciated 13% to 2.93 million units, driven primarily by sales in Asia and Other regions including South America. In Japan, sales declined by 7,000 units to 52,000 units. Outside of Japan, sales rose 13% to 2.88 million units. Revenues from external customers inched up 5% to ¥353.11 billion. Operating income almost shot up 72% to ¥48.13 billion from ¥28.02 billion in the prior year.
Revenues from Financial Services segment went down 7% to ¥134.55 billion. Operating income fell 16% to ¥39.61 billion from ¥47.22 billion a year ago due to unfavorable foreign currency translation effects, despite the decreased allowance for losses on credit and lease residual values.
Honda Power Product and Other segment sales rose 7% to 1.75 million units due to an increase in unit sales in all the regions. In Japan, sales rose marginally by 2,000 units to 104,000 units. Outside of Japan, sales increased 7% to 1.64 million units.
Revenues from sales to external customers in the segment inched up 2% to ¥80.06 billion due to higher sales volume, offset partially by unfavorable currency translation effects. The segment reported a narrower operating loss of ¥2.36 billion in the quarter compared with the year-ago level of ¥3.14 billion due to cost reduction measures, higher sales volume and favorable product mix, despite higher SG&A expenses.
Annual Results
Honda’s profit nearly doubled to ¥534.09 billion ($6.42 billion) or ¥295.67 per share ($3.56 per share) for the fiscal year ended March 31, 2011 from ¥268.40 billion or ¥147.91 per share in the previous fiscal.
Consolidated revenues increased 4% to ¥8.94 trillion ($107.48 billion) due to higher revenues in the automobile business and the motorcycle business, despite the unfavorable currency translation effects. At the same exchange rate as that of the previous fiscal, revenues increased by 8.7%.
Consolidated operating income surged 57% to ¥569.78 billion (¥6.85 billion) from ¥363.78 billion in the prior fiscal year due to increased sales volume and model mix, decrease in fixed costs as volume of production increase and continuing cost reduction measures, despite increased SG&A expenses and R&D expenses, the unfavorable foreign currency effects, and the impact of the earthquake.
Financial Position
Consolidated cash and cash equivalents was ¥1.28 trillion as of March 31, 2011, a decline from ¥1.12 trillion in the corresponding period a year ago. Long-term debt amounted to ¥3.01 trillion as of the above date, translating into a long-term debt-to-capitalization ratio of 40%, almost flat compared with 41% a year ago.
In the fiscal year, cash flow from operations fell to ¥1.07 billion from ¥1.54 trillion in the fiscal year 2011, despite an improvement in income. Some of the factors that led to the decline in cash flow were a fall in equity in income of affiliates, a decrease in dividends from affiliates, a decline in trade accounts and notes payable and a rise in inventories. Meanwhile, capital expenditures reduced to ¥318.54 billion from ¥392.06 billion in the comparable period of 2010.
Honda Profit Skids
Honda revealed a 38% fall in profit to ¥44.55 billion ($536 million) or ¥24.72 per share (30 cents per share) in the fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18 billion or ¥39.78 per share in the same quarter of prior fiscal year.
The decline in profit was attributable to unfavorable currency translation effects, higher selling, general and administrative (SG&A) expenses and the tsunami and earthquake in Japan. These more than offset the positive impact from cost reduction measures, lower R&D expenses, increase in sales volume (except in the Automobile segment) and model mix, and operating income related to licensing agreements.
Consolidated net sales and other operating revenues slid 3% to ¥2.21 trillion ($26.62 billion) on the back of same factors outlined above, despite increased revenues in the motorcycle business and revenues related to licensing agreements. However, at constant exchange rates, revenues increased 3.3%. Consolidated operating profit plummeted 52% to ¥46.21 billion ($556 million) from ¥96.10 billion due to the same factors affecting the net income.
Segment Performance
Sales in the Automobile segment slipped 1.6% to 860,000 units. In Japan, sales decreased 22% to 142,000 units. However, outside of Japan, sales increased 4% to 718,000 units as higher sales in North America offset the lower sales in other countries.
Revenues from external customers in the segment dipped 4% to ¥1.65 trillion due to unfavorable currency translations. The segment had an operating loss of ¥39.18 billion compared with an operating profit of $24.00 billion a year ago.
Sales in the Motorcycle segment appreciated 13% to 2.93 million units, driven primarily by sales in Asia and Other regions including South America. In Japan, sales declined by 7,000 units to 52,000 units. Outside of Japan, sales rose 13% to 2.88 million units. Revenues from external customers inched up 5% to ¥353.11 billion. Operating income almost shot up 72% to ¥48.13 billion from ¥28.02 billion in the prior year.
Revenues from Financial Services segment went down 7% to ¥134.55 billion. Operating income fell 16% to ¥39.61 billion from ¥47.22 billion a year ago due to unfavorable foreign currency translation effects, despite the decreased allowance for losses on credit and lease residual values.
Honda Power Product and Other segment sales rose 7% to 1.75 million units due to an increase in unit sales in all the regions. In Japan, sales rose marginally by 2,000 units to 104,000 units. Outside of Japan, sales increased 7% to 1.64 million units.
Revenues from sales to external customers in the segment inched up 2% to ¥80.06 billion due to higher sales volume, offset partially by unfavorable currency translation effects. The segment reported a narrower operating loss of ¥2.36 billion in the quarter compared with the year-ago level of ¥3.14 billion due to cost reduction measures, higher sales volume and favorable product mix, despite higher SG&A expenses.
Annual Results
Honda’s profit nearly doubled to ¥534.09 billion ($6.42 billion) or ¥295.67 per share ($3.56 per share) for the fiscal year ended March 31, 2011 from ¥268.40 billion or ¥147.91 per share in the previous fiscal.
Consolidated revenues increased 4% to ¥8.94 trillion ($107.48 billion) due to higher revenues in the automobile business and the motorcycle business, despite the unfavorable currency translation effects. At the same exchange rate as that of the previous fiscal, revenues increased by 8.7%.
Consolidated operating income surged 57% to ¥569.78 billion (¥6.85 billion) from ¥363.78 billion in the prior fiscal year due to increased sales volume and model mix, decrease in fixed costs as volume of production increase and continuing cost reduction measures, despite increased SG&A expenses and R&D expenses, the unfavorable foreign currency effects, and the impact of the earthquake.
Financial Position
Consolidated cash and cash equivalents was ¥1.28 trillion as of March 31, 2011, a decline from ¥1.12 trillion in the corresponding period a year ago. Long-term debt amounted to ¥3.01 trillion as of the above date, translating into a long-term debt-to-capitalization ratio of 40%, almost flat compared with 41% a year ago.
In the fiscal year, cash flow from operations fell to ¥1.07 billion from ¥1.54 trillion in the fiscal year 2011, despite an improvement in income. Some of the factors that led to the decline in cash flow were a fall in equity in income of affiliates, a decrease in dividends from affiliates, a decline in trade accounts and notes payable and a rise in inventories. Meanwhile, capital expenditures reduced to ¥318.54 billion from ¥392.06 billion in the comparable period of 2010.
NEWS REPORT: Honda's Ohio Production Slows, Effects Seen
The March 11 earthquake in Japan might as well have occurred next door to the cluster of auto-assembly plants and suppliers northwest of Columbus.
In this landscape of small towns and cornfields, Honda is the largest employer, and Honda is hurting. Starting late last month, the company cut back to half-shifts because of an interruption of parts shipments from Japan.
For now, the Tokyo-based automaker is giving workers the option to get paid for full shifts by doing extra training or cleaning in the afternoons. Workers and community leaders wonder how long this can last before the crisis overseas begins to put a dent in paychecks here.
"They're being so generous, it's unreal," said Randy Jackson of Marysville, who retired from Honda two years ago. "How many companies would pay (auto workers) to push a broom?"
Honda leaders are proud that they have never had a layoff, and they don't expect to start now.
But most of the company's suppliers, the hundreds of companies that provide parts and services, do not have that luxury. Last week, Newman Technology in Mansfield laid off 130 of its 700 workers, citing the slowdown in orders for exhaust systems from Honda. Others will almost certainly follow.
"If Honda is making half of the cars they were, then the parts suppliers will make half the parts they were," said Peter T. Ward, a professor of management at Ohio State University and a consultant to auto companies. In other words, Honda will not stockpile locally made parts, so the cuts in production will be felt far and wide.
Honda employs about 13,400 people in Ohio, the company says, and auto-parts suppliers employ about 56,000 people serving various automakers, according to the Bureau of Labor Statistics.
When the earthquake occurred, Honda had enough parts to continue normal production in Ohio until March 30, when the partial shifts began. The company has said the half-days will continue through May 6 and likely longer.
"The past six weeks have been tremendously difficult, and frankly, a heart-rending time for Honda and everyone in our industry," said John Mendel, Honda's top sales executive in North America, speaking last week at the New York International Auto Show.
There is no precedent for this. Other supply interruptions, such as those due to labor unrest in U.S. ports, were finished well before North American plants ran out of supplies.
Other Japan-based automakers are sharing the pain. For example, Toyota has cut shifts at its U.S. plants and has said that work might be disrupted until November or December. U.S.-based automakers also have had to make adjustments because they use parts made in Japan.
Deep connections
When Jackson, the Honda retiree, heard about the earthquake, he thought of the people he met on his three trips to the country for work. On a 1995 trip to Kumamoto, he walked to the local fire station to see how Japanese fire departments compared to his volunteer fire department in Ohio.
He met the local fire captain and the two struck up a friendship, despite the fact that neither spoke the other's language. He ate dinners with the captain's family, and came to feel like part of the family. At the end of the monthlong trip, his newfound friends insisted on driving him to the airport.
"At the airport, we both stood there and bawled," he said. "We didn't want to leave each other. I couldn't believe his generosity."
Kumamoto, where Honda has a motorcycle factory, is in a part of the country not hit hard by the earthquake.
Many Honda employees have stories like this, about visits to Japan or experiences with Japanese workers who came to Ohio.
Roughly 70 Ohio employees were in Japan when the earthquake hit; none was injured. Because of these deep connections, and the implications for Honda in North America, the disaster is much more than just a news event.
Most Honda employees in Ohio work in a sprawling campus that straddles the Union-Logan county line, including two assembly plants, a research and development center and the North American headquarters. Up the road in Russells Point in Logan County, the company builds transmissions. Farther west, in Anna in Shelby County, is an engine plant.
Honda is one of the state's top 10 private employers and largest automaker.
Workers are down to half-shifts of manufacturing, but you wouldn't know it from looking at the employee parking lot. On a recent afternoon at the Marysville plant, the lot had thousands of cars. Most of the workers were inside doing optional tasks so that they could take home a full day's pay.
According to Jackson, most daytime workers are taking Friday afternoons off. Only a few are going home after production ends each day before lunch. Those who leave are unpaid unless they take vacation time.
He remembers what it was like during those days when staying at the plant meant taking training or cleaning.
"I always hated it because it got so darn boring," he said.
Workers paint, sweep or find other ways to fill the time. This is different from how it might go with U.S.-based automakers that are more likely to issue layoff notices than sacrifice short-term earnings.
The reluctance to consider layoffs "is unusual, but it is deeply ingrained in the way Honda does business," said Ward, the OSU professor.
But there will be negative ramifications for the company, and for other automakers with similar cultures, such as Toyota. "Honda stockholders are going to feel the pain a bit," he said. The company will try make up for short-term losses with long-term gains because of high worker retention and positive morale, he said.
"We are trying to use the down time to strengthen our team," said Caroline Ramsey, Honda's manager of government and community relations in Ohio.
She is looking ahead to a time when the parts supply is restored and the company is so busy with production that there won't be time for training or cleaning. She doesn't know when that might be, but she hopes it's soon.
Cautious waiting
In the cities near Honda plants, such as Marysville and Bellefontaine, almost everyone can point to a friend, neighbor or relative who works for Honda. Local governments and public schools are concerned about the lower level of production because of the potential drop in tax receipts.
Perhaps no community feels this as keenly as Marysville, which has the largest Honda presence and also has started design on two multimillion-dollar building projects for the municipal court and police and fire departments.
The city also is searching for a new administrator, and City Council President Nevin Taylor said that person will need to be ready for the possibility that city income-tax revenue will drop because of cuts at Honda.
"We are worried about the dollar here in the city, sure, but those worries are nothing compared to the people who are worried about the dollars at home," he said.
John Gore, the city's newly appointed mayor, wants to be ready for any setbacks, but he also wants citizens to remain calm. After all, Honda employees are still working close to full-time hours.
"It's almost like a wait and see," he said. "We know it could be an issue."
The larger concern is what might happen if the parts supply is disrupted for several more months. Honda officials say the situation is changing by the day, and they have not made public statements about long-term plans. Outside observers can do little more than speculate and wait.
NEWS REPORT: Honda's Ohio Production Slows, Effects Seen
The March 11 earthquake in Japan might as well have occurred next door to the cluster of auto-assembly plants and suppliers northwest of Columbus.
In this landscape of small towns and cornfields, Honda is the largest employer, and Honda is hurting. Starting late last month, the company cut back to half-shifts because of an interruption of parts shipments from Japan.
For now, the Tokyo-based automaker is giving workers the option to get paid for full shifts by doing extra training or cleaning in the afternoons. Workers and community leaders wonder how long this can last before the crisis overseas begins to put a dent in paychecks here.
"They're being so generous, it's unreal," said Randy Jackson of Marysville, who retired from Honda two years ago. "How many companies would pay (auto workers) to push a broom?"
Honda leaders are proud that they have never had a layoff, and they don't expect to start now.
But most of the company's suppliers, the hundreds of companies that provide parts and services, do not have that luxury. Last week, Newman Technology in Mansfield laid off 130 of its 700 workers, citing the slowdown in orders for exhaust systems from Honda. Others will almost certainly follow.
"If Honda is making half of the cars they were, then the parts suppliers will make half the parts they were," said Peter T. Ward, a professor of management at Ohio State University and a consultant to auto companies. In other words, Honda will not stockpile locally made parts, so the cuts in production will be felt far and wide.
Honda employs about 13,400 people in Ohio, the company says, and auto-parts suppliers employ about 56,000 people serving various automakers, according to the Bureau of Labor Statistics.
When the earthquake occurred, Honda had enough parts to continue normal production in Ohio until March 30, when the partial shifts began. The company has said the half-days will continue through May 6 and likely longer.
"The past six weeks have been tremendously difficult, and frankly, a heart-rending time for Honda and everyone in our industry," said John Mendel, Honda's top sales executive in North America, speaking last week at the New York International Auto Show.
There is no precedent for this. Other supply interruptions, such as those due to labor unrest in U.S. ports, were finished well before North American plants ran out of supplies.
Other Japan-based automakers are sharing the pain. For example, Toyota has cut shifts at its U.S. plants and has said that work might be disrupted until November or December. U.S.-based automakers also have had to make adjustments because they use parts made in Japan.
Deep connections
When Jackson, the Honda retiree, heard about the earthquake, he thought of the people he met on his three trips to the country for work. On a 1995 trip to Kumamoto, he walked to the local fire station to see how Japanese fire departments compared to his volunteer fire department in Ohio.
He met the local fire captain and the two struck up a friendship, despite the fact that neither spoke the other's language. He ate dinners with the captain's family, and came to feel like part of the family. At the end of the monthlong trip, his newfound friends insisted on driving him to the airport.
"At the airport, we both stood there and bawled," he said. "We didn't want to leave each other. I couldn't believe his generosity."
Kumamoto, where Honda has a motorcycle factory, is in a part of the country not hit hard by the earthquake.
Many Honda employees have stories like this, about visits to Japan or experiences with Japanese workers who came to Ohio.
Roughly 70 Ohio employees were in Japan when the earthquake hit; none was injured. Because of these deep connections, and the implications for Honda in North America, the disaster is much more than just a news event.
Most Honda employees in Ohio work in a sprawling campus that straddles the Union-Logan county line, including two assembly plants, a research and development center and the North American headquarters. Up the road in Russells Point in Logan County, the company builds transmissions. Farther west, in Anna in Shelby County, is an engine plant.
Honda is one of the state's top 10 private employers and largest automaker.
Workers are down to half-shifts of manufacturing, but you wouldn't know it from looking at the employee parking lot. On a recent afternoon at the Marysville plant, the lot had thousands of cars. Most of the workers were inside doing optional tasks so that they could take home a full day's pay.
According to Jackson, most daytime workers are taking Friday afternoons off. Only a few are going home after production ends each day before lunch. Those who leave are unpaid unless they take vacation time.
He remembers what it was like during those days when staying at the plant meant taking training or cleaning.
"I always hated it because it got so darn boring," he said.
Workers paint, sweep or find other ways to fill the time. This is different from how it might go with U.S.-based automakers that are more likely to issue layoff notices than sacrifice short-term earnings.
The reluctance to consider layoffs "is unusual, but it is deeply ingrained in the way Honda does business," said Ward, the OSU professor.
But there will be negative ramifications for the company, and for other automakers with similar cultures, such as Toyota. "Honda stockholders are going to feel the pain a bit," he said. The company will try make up for short-term losses with long-term gains because of high worker retention and positive morale, he said.
"We are trying to use the down time to strengthen our team," said Caroline Ramsey, Honda's manager of government and community relations in Ohio.
She is looking ahead to a time when the parts supply is restored and the company is so busy with production that there won't be time for training or cleaning. She doesn't know when that might be, but she hopes it's soon.
Cautious waiting
In the cities near Honda plants, such as Marysville and Bellefontaine, almost everyone can point to a friend, neighbor or relative who works for Honda. Local governments and public schools are concerned about the lower level of production because of the potential drop in tax receipts.
Perhaps no community feels this as keenly as Marysville, which has the largest Honda presence and also has started design on two multimillion-dollar building projects for the municipal court and police and fire departments.
The city also is searching for a new administrator, and City Council President Nevin Taylor said that person will need to be ready for the possibility that city income-tax revenue will drop because of cuts at Honda.
"We are worried about the dollar here in the city, sure, but those worries are nothing compared to the people who are worried about the dollars at home," he said.
John Gore, the city's newly appointed mayor, wants to be ready for any setbacks, but he also wants citizens to remain calm. After all, Honda employees are still working close to full-time hours.
"It's almost like a wait and see," he said. "We know it could be an issue."
The larger concern is what might happen if the parts supply is disrupted for several more months. Honda officials say the situation is changing by the day, and they have not made public statements about long-term plans. Outside observers can do little more than speculate and wait.
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