Honda to save U.S. jobs by shifting production

Honda plans to increase supply of its Civic to meet increased demand for small cars in North America by freeing up capacity at its Alliston plant in Canada to make way for more production of the popular sedan. Honda will do this by moving production of the Pilot SUV and Ridgeline pickup, also sourced from Alliston, to its Lincoln plant in Alabama, saving hundreds of U.S. jobs in the process.

The information comes from Honda CEO Takeo Fukui, who told reporters at a recent press event that every effort is being made to increase supply of “cars with good mileage” in light of rising fuel prices.

Fukai pointed out that the production changes won’t create any new jobs in North America but noted that it will maintain sales momentum and keep the plants profitable. "The point is we won't have to reduce employment," he said.

Honda also plans to add a new plant in Indiana to build more Civics and will create more than 2,000 jobs when it opens later this year, reports The Detroit News.

The news is a welcome change after the latest job-cut announcement made by Ford yesterday and today’s announcement by GM that it’s planning a tough new restructuring strategy.