Honda to cut truck production at U.S. plant again

[paul3230]

TOKYO -- Honda Motor Co. will cut light-truck output sharply at its Lincoln, Ala., plant to cope with high inventories.

Honda did not specify which models will be cut back. The cuts will reflect market demand, says Satoshi Aoki, Honda's executive vice president.

Four models are under consideration for cuts: the Acura MDX and Honda Pilot SUVs; the Honda Ridgeline pickup; and the Odyssey minivan. Current inventory levels indicate that the MDX and Ridgeline are most likely to be cut.

The cuts at the Lincoln plant indirectly could affect production at Honda's truck plant in Alliston, Ontario.

The Alabama No. 1 line builds the Odyssey and Pilot. Alabama's No. 2 line builds the Odyssey, while the No. 2 line at Honda's plant in Alliston builds the MDX, Pilot and Ridgeline. Honda's manufacturing flexibility allows it to juggle production among those three lines. It therefore could reduce output of any one or more of those models.

As of Jan. 1, American Honda had a 54-day supply of the MDX and a 53-day supply of the Ridgeline. Those levels are down from 82 days for the MDX and 72 days for the Ridgeline on Dec. 1.

In October, Honda said it would cut production of its slow-selling Ridgeline pickup by 3,000 vehicles in the January-March quarter. On Oct. 1, Honda was sitting on a 151-day supply of the Ridgeline. Heavy dealer incentives and lease promotions trimmed that to 53 days as of Jan. 1.

Honda says that the latest round of production cuts is designed to reduce the need for the company to offer incentives on light trucks.

Link: http://autoweek.com/apps/pbcs.dll/ar.../60206007/1041

[AdmiralViscen]

No, this has to be a lie. The Ridgeline is the wave of the future. It's an example of how the domestics juts can't keep up.

[likearock00]

Ridgeline is the truck of the future???? Whatever!!!! I am glad to see that the wannabe SUV and truck are starting to slow down, it just hurts to think that when Japan does poorly, Americans lose their jobs!

[pkd87]

Originally Posted by likearock00

Ridgeline is the truck of the future???? Whatever!!!! I am glad to see that the wannabe SUV and truck are starting to slow down, it just hurts to think that when Japan does poorly, Americans lose their jobs!

I believe he was being Sarcastic.

[AdmiralViscen]

Correct.

[nphillips]

Why would someone pay 35 grand for a Ridgleline, anyway?

[redimpss5]

But it has a lockable trunk.

[tgagneguam]

It's nice when your business model affords you the luxury of cutting back the production of vehicles to reflect market demand. In that way, you protect your image (by not having to launch fire sale deals and be seen as a discount automaker), and you protect your recent customers, who don't see the residuals on their vehicles trounced by the aforementioned fire sales.

[rmodys]

Originally Posted by AdmiralViscen

No, this has to be a lie. The Ridgeline is the wave of the future. It's an example of how the domestics juts can't keep up.

Haha
Why am I not surprised about this though? The Ridgeline IS the ugliest truck (barely a truck) I've ever seen.

[kenman923]

Honda is cutting production. That must mean that despite winning Truck of the Year, sales are lousy.

[Havasavana]

Originally Posted by tgagneguam

It's nice when your business model affords you the luxury of cutting back the production of vehicles to reflect market demand. In that way, you protect your image (by not having to launch fire sale deals and be seen as a discount automaker), and you protect your recent customers, who don't see the residuals on their vehicles trounced by the aforementioned fire sales.

Excellent points. Honda is doing what they said they would do in the event of slower sales. I haven't seen anything about layoffs so far, but that has to be on the table if things get bad enough. It will be interesting to see what Toyota does if things slow down more. January was a tough month for several of Honda's, and Toyota's, models. Honda Ridgelines went from 6,589 sales in December to 3,814 in January, Pilot from 18,878 to 9,999 and Ody from 16,228 to 10,257. Toyota's Tundra went from 15,632 to 9,459, Sequoia from 5,340 to 2,754 and Sienna from 15,115 to 11,774.

It seems that Honda might have some flexibility with the RL though to make some tweeks to bump sales. Some feel a 2WD version might do well in the South where snow concerns are minimal. I was browsing on the IIHS website a few days ago and noticed the 4Runner had the second lowest rate of deaths of all vehicles; just slightly worse than the Mercedes E class. I'd think the RL might be even safer than the 4Runner since they are very close in height and both have stability control, and the RL has standard air bags of all types and has a 5" wider track. The 2500 Silverado is still the winner regarding injuries.

[Butz]

Shows that not everyone wants a minivan with a bed, or even an ugly minivan..

[usa1]

The IDEA of the Ridgeline is good. A unibody truck with 4 wheel independent suspension and the latest car based technology is a good idea. The space, packaging, and weight efficiencies are all compelling. The problem with the Ridgeline is that it is ugly, it's an obvious rip off of the Avalanche, and it's from Honda, where no one expects a truck to come from.

Body on frame construction, recirculating ball steeering, solid rear axles are outdated technology and simply needs to go or be left to the 1% of the population that actually tows or hauls anything of significance with their trucks.

In any event, it's good to see Honda having some problems too.

Mark

[grandam_man]

Originally Posted by Havasavana

The 2500 Silverado is still the winner regarding injuries.

Well DUH!!!! Its consider who drives these trucks and what they are used for, they're work trucks, and theres more of them one the road, ur statistic means absolutely nothing to me

[saturnsteve]

It is priced pretty high compared to the others, and only a V-6