Honda to adjust production in Canada due to supply problems from Thailand floods

Honda plans to make further temporary adjustments to automobile production at its North American plants over the next several weeks as it grapples with supply issues from flood-ravaged Thailand.

The automaker said that all six Honda auto plants in Canada and the United States, including its facilities in Alliston, Ont., will offer its employees a “no pay, no penalty” option that allows them to take a vacation day or the day off without pay.

Honda said the decision comes as it contends with a supply shortage involving a few critical electronic parts sourced from Thailand.

The company had already scaled back production at the facilities by 50 percent for about a week starting last Wednesday.

Honda Canada had also suspended Saturday overtime work through November and scheduled a non-production day on November 11, which is Remembrance Day.

The flooding has affected numerous automakers, including Toyota Motor Corp., which was cautious in its outlook for the full financial year ending March 2012, citing uncertainties stemming from the Thai floods. Toyota announced that its overtime will be suspended at all assembly plants in Canada and the United States for an additional week beginning November 7 and including Saturday, November 12. The automaker has assembly plants in Woodstock and Cambridge, Ont., which supply the Canadian and U.S. markets.