Husted: Honda's Production Cut Reflects Automotive Sales Trends
The Honda plant in Marysville will suspend a second shift production line, which makes 55,000 cars a year, mostly Honda Accords. Lt. Gov. Jon Husted says this highlights the unpredictable nature of the automotive industry.
While the Accord saw a slight uptick in sales to start this year, it had a 10% drop in sales in 2018.
Husted says this move reflects the current trends of the car industry.
“Right now, due to the low price of gas, you’re seeing a lot more trucks being purchased and fewer high-mileage, smaller vehicles," Husted says. "That’s just the nature of what’s happening."
Trucks and SUV’s made up 70% of new vehicle sales last year.
Husted notes that this is a trend that could completely flip in the next few years.
Honda’s announcement comes on the heels of General Motors closing its Lordstown plant, which produced the Chevy Cruz.
Honda says there will not be any layoffs but will offer voluntary buyouts. The company does not provide the number of associates per shift. It says it plans to restart the shift in several years.