Honda Extends Production Cuts; GM Re-sources Vital Parts

If you're hoping to buy a new Honda, you may have to keep hoping. Honda says it is extending its North American production cuts by another week, through April 22, as it continues to have trouble getting parts out of earthquake-shattered Japan.

General Motors, meanwhile, says it has re-sourced many parts that had been produced in Japan, hoping to minimize effects of the Japan disaster, Automotive News reported.

Honda cut the shifts at most of its North American plants from eight to four hours on March 29, after it became apparent Japan would not recover quickly from the horrendous March 11 earthquake and tsunami. Honda says it is still hoping to make up the lost production in the second half of the year.

In a memo to dealers, the company said retailers would not be able to modify the trim or color of any vehicles in the June allocation.

Honda had told dealers yesterday that it would discontinue incentives for the 2011 Civic hybrid and 2011 Insight hybrid on April 18. Both cars are assembled in Japan and demand for them is already high, thanks to sharply-rising gas prices, making the incentives unnecessary.

GM re-sources

A General Motors executive told financial analysts that the company has a team of employees identifying components that are at-risk because of the Japan quake and finding replacement sources for those parts.

The company said many team members are on the ground in Japan, working with suppliers to get production running again.

Concerns over short supplies are Japan are likely to result in higher prices industrywide, analysts agree.