This is not good for a completely redesigned model introduced for 2018.
Honda’s US unit will suspend Accord production for two weeks in total over the next several months to reduce inflated stock, the Wall Street Journal (WSJ) reported.
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Japanese, German and Korean automakers have continued to churn out sedans while US automakers have been dialling back the number of model lines in favour of SUVs.
Citing Autodata, the WSJ said year to date end February sales showed Honda, Toyota and Nissan collectively selling about double the amount of sedans in the US compared with the Detroit Three.
A Honda spokesman told the paper the Marysville, Ohio, plant would stop production for 11 days to the end of July, which includes two days a month April to June and then an additional five days following the typical summer shutdown at the beginning of July.
The plant’s 4,200 employees have the option of taking holidays, unpaid days or coming into work to do other tasks.
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By GlobalDataThe spokesman told the WSJ the reason for stopping production was to “focus on aligning production to current market conditions”.
Honda’s dealer Accord stock was over 100 days’ supply in February, much higher than what’s considered healthy for the industry, according to WardsAuto.com data cited in the report.
The plant began producing the redesigned 2018 Accord in September after a US$267m spend that also added 300 new jobs to support Accord production at the assembly plant and at the engine plant in Ohio.
Toyota’s rival Camry was also redesigned for 2018, the Wall Street Journal said.
Year to date to end February, Accord sales were down 12.9% to 37,430 units but Toyota saw a 2.3% increase in Camry sales to 48,929 vehicles.
The WSJ noted Nissan is also slowing production at its plant in Tennessee which produces vehicles including the Altima and Maxima sedans, along with the Rogue crossover, and others. Dan Mohnke, Nissan’s head of sales in North America, said in an interview last week that the automaker would slow the speed of its lines to reduce inventories by about 15% to the end of June.
“We’re taking some pressure out of the business,” Mohnke was quoted as saying. “Getting our inventory right is a key step to be able to focus on sustainable, natural growth from there.”
See also: US buyers shunning midsize sedans
