Ralph Kisiel
Automotive News
July 21, 2008 - 3:43 pm ET


Even Honda Motor Co. is feeling the pain of consumers' stampede from light trucks to cars.

The Japanese automaker said today that it will reduce production of the Honda Odyssey minivan and Honda Pilot crossover by a combined 10,000 units this year at its Lincoln, Ala., assembly plant. In the first half of 2008, Honda built 158,316 Odysseys and Pilots in Lincoln, down 2.4 percent from the same period of 2007.

"Honda is not immune to the shift in the market," said Honda spokesman David Iida. "We don't want inventories to get too high."

The production cut will be made from August through October. The Lincoln plant will close Aug. 1 and Aug. 29, and the plant's second shift will be canceled each Friday during the three months.

Honda wants to keep Pilot and Odyssey inventory between a 45- and 60-day supply, Iida said.

On July 1, Honda had a 78-day supply of Odysseys and a 99-day supply of Pilots, according to the Automotive News Data Center.

There will be no layoffs at the plant, Iida said. Honda will use the time for employee training and other work. Workers also could take paid or unpaid vacation time, he said.

Honda will consolidate light-truck production in Lincoln by moving output of the Honda Ridgeline pickup there from Alliston, Ontario.

Ridgeline production in Lincoln will begin in early 2009. Production trials begin in a few months, Iida said.

Honda also will increase output of the Honda Civic compact at its plants in East Liberty, Ohio, and Alliston. Honda did not say how much Civic production will rise.

 

99 day supply of Pilots is crazy high for a model that came out 1-2 months ago (however that stat could include the old generation as well).