While U.S. automakers are rushing to develop new small cars to take advantage of the rapidly growing market, established players like
Honda is having trouble keeping up with the strong demand and is being forced to look at ways to boost production. Sales of the Honda Civic in the U.S. have increased 14.8% in the past four months alone and could reach 40,000 to 45,000 units per month within the year to become the carmaker’s most popular model.
To be able to achieve that status, Honda will need to increase supply and to do so management is looking at adding more shifts and overtime at the East Liberty, Ohio, and Alliston, Ontario, plants. Production has already been increased 24.8% and 6.6% respectively at the Ontario and Ohio plans through April, but supply levels are still falling, reports
Automotive News.
Other
more drastic actions Honda is investigating include adding a new plant in Indiana to build more Civics as well as moving production of the slower selling Pilot SUV and Ridgeline pickup away from its Alliston plant to free up capacity for more Civics.
The Civic sedan with a four-cylinder engine and five-speed automatic transmission sells for $15,645, including shipping. It gets 25mpg in the city and 36mpg on the highway.
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By Skeletor Posted: 6/2/2008 5:15pm PDT
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