West Coast Port Delays Force Honda to Cut Production

By Kelly Pleskot – February 20, 2015

2015 Honda Civic Front Three Quarter View 2

Honda says that port delays related to labor disputes across the West Coast will create parts shortages at its factories, resulting in additional production losses next week. A labor dispute has essentially shut down several major ports on the West Coast for weeks, preventing shipments from entering or exiting.

Honda had already cut output at five of its North American factories from February 16-23, resulting in a production loss of 20,000 cars. The situation is expected to improve next week as Honda receives more parts by air, although production won’t be back to full force. Through March 2, Honda is curtailing output at two factories –one in Indiana and another in Canada — for an expected loss of another 5000 cars.
About 95 percent of the cars Honda and Acura sell in the U.S. are built in North America, but many parts are sourced globally. The plants that will shut down next week are relying on continuously variable transmissions shipped from Japan to build many Civic cars, reports Reuters.

For now, there’s no telling when a settlement will be reached in the labor dispute. The International Longshore and Warehouse Union has been trying to negotiate a deal for nine months with shipping executives, and the dispute has led to an increasing amount of congestion at some of the nation’s busiest ports.

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