Honda sales decline four per cent over last November

Author: Maija Hoggett, Staff

Date: Dec 17, 2009

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Alliston Herald

Honda Canada's Alliston assembly plant

ALLISTON - Strong October sales of the Acura MDX meant supplies of the Alliston-made vehicle were short in November.

In November Honda Canada Inc. had a combined sale of 8,896 units in its Honda and Acura division, a four per cent drop over November 2008. Of the units sold, 941 units were in the Acura division, up three per cent, and 7,955 were Honda vehicles, a four per cent decrease over last year.

"Even though Acura sales showed an increase over last year, they were not as strong as they could have been this month due to a significant shortage of MDX units, Acura's most popular model. October had marked an all-time monthly sales record of MDX, which severely depleted our remaining supply of 2009 models ahead of on-sale timing for the new 2010 MDX this month, coinciding with the debut of the all-new Canadian-built Acura ZDX," said Honda Canada executive vice president Jerry Chenkin.

Overall, Chenkin said Honda is "seeing an increase in consumer confidence."

Until vehicle sales pick up, the Alliston plants will continue operating on a reduced shift, said Joe Sperduti, administration general manager and vice president.

The production cuts and other changes at the Alliston plants started last December.

In the past year, the Plant 2 afternoon shift was cancelled, temporary worker contracts bought out, and at times production was cut to four days a week.

Employee benefits were also cut, with changes made to their long-term disability, drug and dental places. The health care benefits were also reduced for single people.

Currently, Plant 1, which produces the Civic, is at full capacity - putting out 800 vehicles per day. Plant 2, where the new Acura ZDX is being produced, is putting out 400 vehicles a day.

"We made a lot of changes, partly to deal with the downturn in the economy and partly to make a stronger business," said Sperduti. "Once things recover I think we'll be a stronger business overall."

The past year has been a milestone year for Honda.

It celebrated its 40th year in Canada, January saw the five-millionth vehicle drive off the Alliston production line, and Honda produced its 20 millionth vehicle in North America.

Honda has been operating in Alliston since 1986. With about 4,400 workers, the Honda Civic sedan and coupe, Acura CSZ sedan and MDX luxury vehicle are built locally, as well as fuel-efficient, four-cylinder engines.

The Acura ZDX, a crossover utility vehicle, is the latest model added to the local production lines.