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Honda halting production at HPE in North Carolina due to COVID-19

Honda on Wednesday announced that it is temporarily suspending production at two of its non-automotive plants, Honda Power Equipment Mfg., Inc., and Honda of South Carolina Mfg., Inc., starting Thursday, March 26.

Power Equipment Production (beginning March 26)

Honda Power Equipment Mfg., Inc. (HPE) also will adjust production at its plant in Swepsonville, North Carolina, due to parts supply issues related to the economic impact of the COVID-19 pandemic. HPE will suspend production for seven days beginning Thursday, March 26, with current plans to return to production on Monday, April 6. HPE makes a variety of power equipment products, including general purpose engines, lawn mowers, water pumps, snow throwers, generators and mini-tillers. During this time, Honda Power Equipment will continue full pay for all of its associates and contingent workers.

Powersports Production (beginning March 26)

Honda of South Carolina Mfg., Inc. (HSC) will adjust production of ATVs and side-by-sides at its plant in Timmonsville, South Carolina, due to an anticipated decline in market demand related to the economic impact of the COVID-19 pandemic. HSC will suspend production for seven days beginning Thursday, March 26, with current plans to return to production on Monday, April 6. During this time, Honda of South Carolina Mfg., Inc. will continue full pay for all of its associates and contingent workers.

Auto Production (beginning March 23)

Last week, Honda announced that it would adjust production at all of its automobile production plants in North America, including the U.S., Canada and Mexico, due to an anticipated decline in market demand related to the economic impact of the COVID-19 pandemic.

Honda suspended production for six days beginning March 23, with current plans to return to production on Tuesday, March 31. Honda transmission and engine plants in North America that serve Honda auto plants also have suspended production for the same time period. Honda will reduce production by approximately 40,000 autos during these six days.

As the market impact of the fast-changing COVID-19 situation evolves, Honda will continue to evaluate conditions and make additional adjustments as necessary. In undertaking these production adjustments, Honda is continuing to manage its business carefully through a measured approach to sales that aligns production with market demand.

During this time, Honda will continue full pay for all of its associates and contingent workers. Approximately 29,400 Honda production associates in North America are affected by this temporary suspension of production of automobiles, powersports products and power equipment. In addition, Honda will utilize this time to continue the deep cleaning of its production facilities and common areas to further protect associates upon their return to the plants.

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

Due to the fast-changing nature of this situation, we will continue to provide updates on our business impacts and actions on Hondanews.com

Non-auto manufacturing plants include (starting March 26-April 6):

North Carolina:

Honda Power Equipment Mfg., Inc.

South Carolina:

Honda of South Carolina Mfg., Inc.

The affected auto plants include (starting March 23-March 31):

Ohio:

Marysville Auto Plant East Liberty Auto Plant

Performance Manufacturing Center

Indiana:

Honda Manufacturing of Indiana

Alabama:

Honda Manufacturing of Alabama

Canada:

Honda of Canada Mfg. – Plants 1 & 2

Mexico:

Honda de Mexico – Celaya Auto Plant

The affected powertrain plants include (starting March 23-March 31):

Honda Transmission Manufacturing of America (Ohio)

Honda of America Mfg. Anna Engine Plant (Ohio)

Honda Precision Parts of Georgia (Georgia)

Honda of Canada Mfg. Engine Plant (Canada)

Honda de Mexico – Celaya Transmission Plant (Mexico)

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