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Position: Auto Articles - [Auto News] - Honda Suspends Mexican Operations after Pipeline Attacks
Updated: 01:35 p.m. EDT, September 13, 2007
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Honda Suspends Mexican Operations after Pipeline Attacks

The effect of rebel attacks against Mexican natural gas pipelines on automotive production in the country worsened Thursday as Honda became the fifth manufacturer to suspend operations.

Work at the company's vehicle and components plant in El Salto, Jalisco was halted today with no work scheduled for Friday, September 14th due to the lack of natural gas.

Honda joins the GM plants in Toluca and Silao, the Ford operation in Cuautitlan, Chrysler's Toluca plant, and the Volkswagen AG facility in Puebla in the decision.

Additionally more than 100 supplier plants have now ceased operations in response to customer directives to halt the delivery of parts.

The Honda plant, with a workforce of 2,800 people, is scheduled to come back on line at 7 a.m. Monday.

The facility is currently converting its production of Accord sedans to that of CR-V crossovers and is also a major supplier of bumpers for a variety of Honda vehicles made in the U.S. and Canada.

Due to the conversion process, the plant's production had slowed to 9 vehicles per day, so the shutdown's effects is expected to be minimal. By October, however, the facility should be producing 95 units a day.

While the effect of the shutdown on Honda's supply chain is minimal, the broader impact of the pipeline attacks on Mexican automotive production is more serious.




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