Honda announced today that it plans to further reduce production of the Odyssey minivan and new-for-2008 Pilot SUV by 22,000 units between November and March in response to diminished demand. Both vehicles are built in Honda’s Lincoln , Alabama, plant, located near Talladega. Honda announced smaller production cuts in July.
Despite relatively strong sales for the Japanese automaker – sales are down barely 1 percent thus far in 2008 – Honda is experiencing the same reduced demand for fuel-thirsty vehicles that are plaguing rivals across the globe. Pilot sales, however, are down 17 percent so far this calendar year and Odyssey sales are down 14 percent. The new Pilot, which has been heavily criticized internally, is certainly not meeting Honda’s initial sales expectations.
Honda will increase production of four-cylinder Accords at its Marysville, Ohio, assembly plant by mid-2009, reducing reliance on imported Accords. Some four-cylinder Accords are imported from a Honda facility in Japan. Honda will also begin building V6 Accords in Alabama, utilizing the capacity freed up by Odyssey and Pilot production cuts.
