To address declining inventories across its dealerships nationwide, Honda America is planning to add multiple overtime shifts at two plants. These two plants are in Lincoln Alabama, where Honda will add 3 production Saturdays with overtime pay in September and October and in East Liberty, Ohio, where the company will be adding additional Saturday shifts but will not release the exact number.
"Our inventories are low," said Ed Miller, who said the decision to ramp up production came before the federal cash-for-clunkers program kicked off. The Honda Civic and CR-V has seen amazing sales since the kick off for the program and the Fit and Accord are also doing very well. Dealer feedback has been positive as dealers are generally happy to have the program.
"We were seeing some impact prior to cash for clunkers, now we'll have to go back and access what the impact of that is going to be on our inventory," he said.
Honda will not disclose how much production would increase this fall but currently Alabama is producing an average of 900 vehicles per day, Odysseys, Ride Lines, Accords and Pilots. The Ohio plant is below its 950 vehicles per day capacity, making CR-Vs and Elements.