Recently, Canadian auto dealer visited Honda Canada Manufacturing in Alliston, Ont., on the day the company announced that Civic production at its Plant 1 was back to full capacity. Since even before it was launched, the current generation Civic has been hit by obstacles, including cost cutting measures instigated during the recession of 2008-09 when the car was still under development.
A further blow came in March, when, as a result of the catastrophic earthquake and tsunami that hit Japan, Honda faced supply problems which had a major impact on 2012 Civic availability, since the car was Honda’s most recently introduced model at that time. With dealers stuck with 30 instead of the usual 60 days supply in many cases, it proved a tricky situation, especially as the Civic has long enjoyed the title of the best selling car in Canada.
However, at the announcement, Jerry Cherkin, vice president, Honda Canada Inc. said that despite the difficult circumstances, Associates, dealers and customers alike have been very supportive. “It’s heartening to know that so many customers patiently waited for our all-new Civic while production was reduced.” He also said, in an exclusive interview with Canadian auto dealer that despite production increases, it would take several months (likely sometime in the new year) before dealers would be at 60 days supply again, though again, he greatly acknowledged the support so far provided by Honda’s Canadian dealer network.
However, as can sometimes be the case, production of the Civic has been set back once again, due to widespread flooding in Thailand where a number of suppliers are located.
This has led to Honda cutting back its entire North American production by 50 percent this week, as the company assesses and repairs the damage to facilities and supply chains in that country. The result of that will likely be further delays in replenishing low inventory stocks of new Civics, though HCI has said it’s doing it all it can to minimize the impact on supply.
