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Honda navigates recession
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New Honda Civics roll off the production line at one of two production plants for Honda of Canada Manufacturing in Alliston.
Honda of Canada Manufacturing in Alliston is navigating the economic downturn the best it can, according to senior management.
"We've managed to get through this without closing any plants in North America," said Joe Sperduti, administration general manager and vice president.
In September, Honda Canada Inc. sold 12,399 units, in both its Honda and Acura divisions, a 17 per cent decrease in sales over September 2008 figures.
Honda division sales were down 12 per cent over last September, with 11,272 units sold.
Acura sold 1,127 units, with sales decreasing 45 per cent over last year.
Because of the sales, production at the two Alliston plants is still not at full capacity. Last winter production at Plant 2 was cut back to one shift.
"Until this market recovers I don't see us going back to two shifts," said Sperduti.
Plant 1, which is producing the Civic, is at full capacity producing 800 vehicles per day, with Plant 2, where the new Acura ZDX is scheduled to be built, putting out 400 vehicles a day.
Having to cut back a shift is a first in Sperduti's experience.
"We've had some blips over the last 20 years, but nothing like this," he said.
Honda is moving forward with producing new model vehicles.
In the coming weeks, Plant 2 will start producing the Acura ZDX.
HCM unveiled the crossover utility vehicle last winter. It was scheduled to be on sale this fall, but the date was pushed back in July.
Producing the vehicle won't create any new jobs at the Alliston plants, the vehicle will be scheduled into an existing line and be built by current employees.
This has been a milestone year for Honda, which is celebrating its 40th year in Canada. January marked the five-millionth vehicle driving off the Alliston production lines and shortly after that Honda produced its 20 millionth vehicle in North America.
Honda opened its Alliston production plant in 1986, representing an investment of $2.6 billion. With about 4,400 workers, the Honda Civic sedan and coupe and the Acura CSX sedan and MDX luxury utility vehicle are built locally, as well as fuel-efficient four-cylinder engines.
Nearly half of all Honda and Acura vehicles sold in Canada in 2008 were made in Canada.

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