Honda intent on saving US jobs by switching models

[Omaha Steve]

Source: Associated Press

TOKYO (AP) — Honda will meet growing U.S. demand for small cars while maintaining North American jobs by moving production of two bigger models from Canada to Alabama, Chief Executive Takeo Fukui said Thursday.

Honda Motor Co.'s Pilot sport utility vehicle and Ridgeline pickup, now rolling off its plant in Alliston, Ontario, will be produced in Lincoln, Alabama, allowing the production of the Civic sedan to be raised in Canada, he said.

"Gas prices continue to rise, and the demand for cars with good mileage is growing," Fukui told reporters at a Tokyo hotel. "Efforts are under way to increase the local production of the Civic."

Even the usually booming Japanese automakers are sensing the pinch from a U.S. economic slowdown and soaring material costs, including steel. But the Japanese are holding up better than their American rivals because of their reputation for fuel-efficient offerings.


Read more: http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d90v75582&

[Vinca]

1. At the same time, Ford, an American company, announced

it would be cutting its work force. I guess it never occurred to them this might be a great time to sell lots and lots of SMALL cars. Toyota's got waiting lists for their hybrid and older model, used, SMALL cars are selling for more than they did when new.

[Kolesar]

12. How many Hondas get better fuel economy than a Ford Focus?

[wuushew]

15. All models of the Civic and Fit have lower carbon footprints

The Civic along with the Accord are the big sellers with Honda. I don't claim to know what percentage of Ford vehicle sales the Focus makes up but I think it is a safe bet it is smaller than that of the Civic.

http://www.fueleconomy.gov/feg/bymanu.htm

[Kolesar]

19. Wow. two.

[wuushew]

20. I don't understand your dismissive attitude

Isn't an excessive number of vehicles lines one of the acknowledged cost drivers that GM in particular has been seeking to eliminate in recent years? :shrug:


Is Volkswagen to be condemned for only making 21,529,464 Beetles?


Next time you want to criticize a car company don't sarcastically do it by asking a legitimate question.

[Kolesar]

22. 1. it's Ford, not GM

2. It's about this. Ford does make small cars. It wasn't so long ago that Toy killed the little Echo because consumers were not buying them:

Vinca (1000+ posts) Thu May-29-08 07:05 AM
Response to Original message

1. At the same time, Ford, an American company, announced
it would be cutting its work force. I guess it never occurred to them this might be a great time to sell lots and lots of SMALL cars. Toyota's got waiting lists for their hybrid and older model, used, SMALL cars are selling for more than they did when new.

[robcon]

2. Honda did no such thing....

"Honda intent on saving US jobs by switching models"

Honda just switched locations of production to maximize their profitability. Their "intention" to save U.S. jobs (and sacrifice Canadian ones???) is an unsubstantiated and erroneous conclusion.

[9119495]

3. And I highly doubt the plant in Alabama is unionized...I may be wrong

but it seems like Mercedes, Honda, etc. choose to build in the South because of the lack of unions.

[DainBramaged]

5. You are correct. They have done a good job of spreading the seeds of distrust of Unions

over the past 30 years. But then there is the fact that they also have a harder time finding TRANABLE workers down South because one of the benefits of UAW membership has always been training to get the members ready for advanced assembly techniques.

Toyota moved their last assembly plant to Canada NOT because of lower health care costs but because they just could not get their current plants to run at full production because of rampant absenteeism, especially on Mondays.

[Honeycombe8]

7. Even if true, I'll bet that Alabama will be glad to get the business. nt

[9119495]

14. To be sure. I just wish they were unionized. It's better for all.

[EnviroBat]

8. No Honda plants are unionized.

They won't allow the unions in. I worked at a plant in Marysville Ohio, and even mentioning the word "union" gets you terminated.

[michreject]

25. Are any of Honda's auto factories unionized?

I don't believe so.

BTW. I own two GM vehicles.:)

[DainBramaged]

4. HEAR HEAR

Honda never did ANYTHING to save anyone except their profitability.

[AndyTiedye]

16. Sounded Like They Needed the Canadian Workers to Boost Production of Small Cars

No mention of anyone getting let go.

If anything, the Canadian plant probably has more of a future than the Alabama one.

[Ferd Berfle]

6. Well good on them, AND THE US AUTO companies are intent on destroying US jobs

What the hell is this Orwellian crap?

[EnviroBat]

9. Could it be that Ford sees this as a fuel efficient "Family Sedan"?

They need to pull their heads out their asses. The manufacturers and consumers of such retarded vehicles are in for a tragic dose of reality.

[AndyTiedye]

18. Ford Also Makes the Escape Hybrid

Unlike GM's "hybrids", this is a full hybrid (including the ability to go short distances under electric power, like the Prius) with an SULEV rating.
EPA rating 32 mpg, the highest of any SUV on the US market.

[SidDithers]

21. And Ford is offerring to lease it at the low, low rate of 11.1%...

Whereas their gas version leases at 2.69%.

:wtf:

Sid

[NinetySix]

10. A lot of negative replies to this OP...

...and far be it from me to defend a multinational corporation, but:

Honda ginning up production of the Civic in Canada is actually a GOOD thing with regard to fuel efficiency.

The US model Civic is rated at about 38 to 40 mpg. I drive a 2002 Civic DX built in Canada, and it was rated at 51 mpg highway, 38 city back then. Even most US model hybrids (Honda or otherwise) get rated at a lower fuel efficiency than that, so if the intent is to sell Canadian-built Civics across the border in the US market, so much the better.

Honda knows that higher efficiency standards are what most Americans are looking for in a new car these days, what with gas approaching $4 nationwide, and since they are already geared up to build them in Windsor, it seems perfectly reasonable to increase production, both from an individual's economic standpoint as well as that of the Honda corporation.

Now if only they'd bring back the Insight, which got...wait for it...88 mpg!

[EnviroBat]

13. They are manufacturing a really cool airplane now too.

My cousins wife is the production manager for the new plant in North Carolina.

[Muttocracy]

17. my friends bought one of the last Insights. I wish they had kept it going a little longer

I bet it would have done fantastic in 2007 & 2008. Bad timing I guess. Hope they don't wait too long to roll out their new small hybrids - I think some are on the way this fall and in the next few years (saw it on DU).

[ananda]

11. Yay Honda

I just ordered a Civic hybrid.

Now I just have to sell my CR-V

[Blue_Tires]

23. that sounds more like spin than anything else

their 'reasoning' only takes the bottom line into consideration...

[Regret My New Name]

24. Yeah, it's not like Canadians need jobs...

I mean, good for the folks in Bumfux,Alabama and stuff, but I doubt the Canucks in Swimming Beaver,Alberta are too happy with this move.