Honda Cuts North American Output by 5,000 Over Ports Dispute

Feb 20, 2015 08:00 AM EST | Matt Mercuro

Honda has announced that it will continue to adjust production at its two North American plants from Feb. 24 to March 2 over a parts shortage caused by disruptions at U.S. West Coast ports in the middle of labor talks.

The automaker expected output loss at the plants during the week to be around 5,000 vehicles, according to Reuters.

The plants, located in Indiana and Canada, mainly focus on manufacturing the popular Civic model, some of whose continually variable transmissions (CVT) are sent from Japan.

Honda is reducing output at five different North American car plants between Feb. 16 and 23, for an estimated production loss of 20,000 vehicles.

"The supply situation will be a little bit better next week due to the delivery of more parts by air," a spokesman said to Reuters.

Ports on the U.S. West Coast are basically in a gridlock over a labor dispute between dockworkers and the group representing terminal operators and shippers.

Honda CEO Takanobu Ito said on Monday that the automaker is cutting its six-million vehicle sale targets through 2017 to avoid quality issues.

Honda had to deal with a number of recalls in 2014, the most glaring example being vehicles with Takata air bags. Nearly 5.4 million of Honda vehicles in the U.S. contain potentially deadly air bags made by the parts supplier.

The automaker had to pay $70 million to the National Highway Traffic Safety Administration last year for failing to submit 1,729 safety reports, according to the agency.

Toyota has also reduced overtime at some of its factories in North America, while Nissan has been "somewhat" affected by the slowdown on the West Coast, according to Reuters.

President Barack Obama dispatched U.S. Labor Secretary Tom Perez to California last weekend to help broker an agreement between dock workers and shipping companies.

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