It should come as no surprise that unsold vehicles are piling up along with the stacks of bills at many auto companies. GM is currently waiting for a government lifeline, and Honda recently cited the economic crisis as its reason for exiting Formula one. Now we get word from both companies of further output reductions.
Honda will scale its production in the U.S. back by 119,000 vehicles. Next year’s output is predicted to fall to 1.29 million, down from an original target of 1.47 million.
Meanwhile over at GM, production figures are dropping as well. It will suspend thirty percent of its North American manufacturing plants to cut costs and shave inventory. This latest belt-tightening measure will hit twenty plants and reduce 2009 first quarter output by 250,000 vehicles.
Source: The Detroit News