Read Larry Connors' blog – Short Term Trading Strategies
In Ohio, that means the cancellation of production Dec. 22 and 23, the last two days of work before a scheduled holiday shutdown. For those two days, workers can take vacation, report for nonproduction duties or take unpaid leave.
In addition, overtime is being eliminated at most plants, in some cases through the end of the company's fiscal year in March.
No layoffs are planned, spokesman Ron Lietzke said.
The changes, although barely a blip compared with the upheaval at domestic automakers, follow one of the worst months in recent memory for U.S. auto sales. Honda's sales were down 25 percent in October compared with a year earlier. Industrywide, new-car sales were down 32 percent.
"Honda isn't immune to a recession of this magnitude," said Erich Merkle, an automotive analyst with Crowe Horwath in Grand Rapids, Mich.
"I think October really spooked a lot of people, including Honda," he said.
For the year, Honda is one of the best-performing automakers, with sales down 3 percent, compared with industry sales that are down 15 percent.
Honda's North American production cuts will mean that 18,000 fewer vehicles will be made between now and the end of March. That number represents about 2 percent of its output for the fiscal year.
The company has about 15,000 employees in Ohio. About 12,000 are manufacturing workers affected by the changes.
Lietzke said the overtime decision was based on a need to reduce production, not on a need to reduce payroll expenses. He declined to say how the change might affect a typical worker's take-home pay.
The company brings workers in on Saturdays, on overtime, when it needs to increase capacity to meet orders. That occurred most recently in the summer, when high fuel prices led to strong demand for the Honda Civic.
Honda plants in Alabama and Ontario, Canada, are making similar production changes, although the plant in Ontario is canceling overtime only through January.
The newest plant, opened last month in Greensburg, Ind., is still ramping up production and will not change its plans.
dgearino@dispatch.com
To see more of The Columbus Dispatch, or to subscribe to the newspaper, go to http://www.columbusdispatch.com. Copyright (c) 2008, The Columbus Dispatch, Ohio Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
