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Honda slashes output

2008-11-21 14:40
Honda Motor Corporation said Friday it will cut production in Japan and Europe by 61 000 vehicles, as it continues to grapple with slowing global demand.

The latest cut means Japan's second-largest automaker will reduce annual production by more than 140 000 vehicles worldwide.

Honda said production at its Saitama plant, near Tokyo, will be halted through to the end of this month followed by lower daily output,
shaving output by 40 000 vehicles.

A cut of 21 000 will be made at Honda's Wiltshire plant in southwest England, which makes the popular Civic model. Production at the the
Wiltshire plant was cut 32 000 vehicles earlier this year. Honda had projected an annual output of 228 000 at the plant.

The automaker now expects its domestic production to total 1.27 million vehicles, down 2.4% from the 1.31 million projected in April.

Honda said it expects global production of about 2.87 million vehicles for the fiscal year ending March 31, down from its earlier projection of 3 million.

Tough economic conditions and tight credit markets have cut into auto sales across the industry this year, forcing many automakers who
produce vehicles in the United States to cut production.

Honda said Thursday that it was cutting its North American production by another 18 000 vehicles, bringing the total production cuts in the US since August to 50 000.

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