Create a free Manufacturing.net account to continue

Honda Cutting Production At Canada Plant

Automaker is cutting production by half at one of its plants in Alliston, Ont., until auto sales rebound.

ALLISTON, Ont. (CP) -- Honda Canada is cutting production at one of its plants in Alliston, Ont., until auto sales rebound.

The original plan for Plant No. 2 was to cut back from 800 units to 600 units per day, spokeswoman Lisa Timps said Monday, but that number has now been reduced to 400.

"We'll probably put two shifts together and make one shift," she said.

The change takes effect Feb. 2.

"The market dictates what will happen," Timps said. "But we can't let our inventory creep up too high."

Timps called the move a "temporary" measure, and no estimate was available for how long the reduction will remain in place.

The number of workers who will be affected is also undetermined.

"It's difficult to say," Timps said. "First we have to take a look at what we need in relation to the number of units per day."

However, Timps said some contracts are about to expire and other employees could be transferred to another department.

"We still have to sort out the numbers," she said.

Plant No. 1 is not affected by the reduction.

More in Operations