Honda Plans to Shut Down North American Plants for Six Days Due to Virus Concerns, Demand Decline
March 18 2020 - 9:54AM
Dow Jones News
Honda Motor Co. said Wednesday it will temporarily close about a
dozen factories in the U.S., Canada and Mexico for six days to
respond to concerns about the rapidly spreading virus and in
anticipation of lower consumer demand.
The Japanese auto maker will suspend production at these plants,
which include those that assemble vehicles as well as build engines
and transmissions, starting Monday -- a move that will affect
27,600 jobs, the company said.
Honda said all impacted employees will be paid during the
downtime, which it anticipates will reduce factory output by about
40,000 vehicles.
The action marks the first time a major auto maker has initiated
a region-wide shut down of its factories in North America to
mitigate the impact of the outbreak.
In Europe, most global car companies have temporarily suspended
work at their plants, and on Tuesday, Ford Motor Co. said it will
have to close its Chicago plant for a short period of time due to a
parts shortage.
More to come
(END) Dow Jones Newswires
March 18, 2020 09:39 ET (13:39 GMT)
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