Honda Motor Co said it will cut its North American production by another 18,000 vehicles. Honda spokesman Ed Miller said the cuts are on top of others announced earlier this year. Industry wide drop in demand for new vehicles has forced the automaker to cut its total production by 50,000 units starting August.

Miller said 6,000 of the cuts will be made at plants in East Liberty, Ohio, which makes the Element, CRV and Civic; and Marysville, Ohio, which makes the Accord along with the Acura while the other 12,000 will be made at Honda's plant in Lincoln, Alabama, which makes the Odyssey minivan and Pilot sport utility vehicle.

Miller said there are currently no plans to lay off workers, instead production will be slowed at the Lincoln plant, while the plants in Ohio will be shut down for two more days during the Christmas vacation.

With the cuts, Honda is now expected to manufacture about 1.41 million vehicles in North America for the fiscal year ending March 31, down from 1.44 million in fiscal 2007.

Tough economic conditions and tight credit markets have forced many automakers to cut production not just in the United States but across the world. 

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Posted by Jigar Gondalia on 22 November, 2008 1:12:32 PM IST #