Honda Motor may begin transporting some imported parts through Mexico to avoid production disruptions such as those caused by last month’s shutdown of US West Coast ports, the Los Angeles Times said on its website.
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Honda also wants permission to speed US-bound parts shipments so it has more inventory if a similar bottleneck occurs, the newspaper added.
The Los Angeles Times said Honda lost 25,000 units of production after shipments of minor parts such as water hose clips, bolts and screws were stuck at West Coast ports [following the recent lockout of dock workers over productivity and new technology issues].
Honda vice president for corporate planning and logistics Dan Bonawitz said the company is considering steps to keep future distribution snags from closing plants, the newspaper reported.
“We’re working with [U.S.] Customs right now on fast-tracking border crossings or port entries, so we’re in the early stages of that,” Bonawitz said in an interview in Las Vegas, according to the LA Times.
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By GlobalData“We also look at options like bringing more in through Mexico. We brought in one ship there this time,” Bonawitz added, according to the newspaper.
The LA Times said Honda makes 80% of the cars and trucks it sells in North America at local plants that buy 95% of their parts from local suppliers.
The factories are among North America’s most efficient in part because they rely on “just-in-time” deliveries of components and hold relatively small inventories, the newspaper said.
