Honda is cutting back on production at two of its U.S. plants in anticipation of a slide in sales. The Marysville, Ohio plant and Honda of Indiana are the two plants being affected. The cuts primarily come to the Accord and Civic built in Marysville. Marysville operates two lines and one shift at Marysville on Line 1 will be suspended temporarily. That line produces the Accord, CR-V, ILX, and TLX, but the cuts there will mostly impact Accord. Acura production is unchanged at this time. The CR-V is also produced in Indiana so some production can be shifted from Marysville to there. This news comes after the announcement of the closure of Honda's Swindon UK manufacturing plant which builds the CR-V for Europe and the Honda Civic Hatchback and Civic Type-R for the U.S.
Honda sales are down 0.9% for the year, but the Accord has slipped 5.9% July YTD, and the Civic which is Honda's second most popular model has slipped 2.1% July YTD. CR-V, which is Honda's biggest seller is also down 0.9%, but a light refresh is in the works for the CR-V and should debut soon.
Honda says these adjustments are to help maintain Honda's sales discipline and to flex to the shift in market demand away from sedans. Honda has already announced they are looking to trim fat from their model lineup and have fewer regionally specific models. They will also be reducing the number of variations available to one third of what they are today. These plans are to be completed by 2025.
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