09-11-2009, 03:06 PM #1
Honda suspends PWC Production Indefinitely
Honda suspends PWC Production Indefinitely
Sep. 11, 2009
Statement by American Honda Motor Co., Inc.
Re: HSC Production Status
Honda of South Carolina Mfg., Inc. (HSC), in Timmonsville, S.C., will focus exclusively on its role as a producer of all terrain vehicles (ATVs) due to the improving ATV market and reduced inventory levels of most ATV models. The plant will not resume assembly of personal watercraft (PWC), suspended since January 2009. Current inventories of Honda PWCs are adequate to meet market demand. Therefore, a 2010 model will not be necessary. Production of PWCs will resume at another Honda plant in the future once market conditions improve.
HSC resumed ATV production in early May, 2009 after suspending production in March, 2009, to better manage inventory levels and the challenging market conditions. As the ATV market shows signs of recovery and growth, HSC will focus on strengthening this core responsibility within global Honda.
The HSC facility that formerly produced PWCs will serve as a Consolidation Center for ATV production, for more efficient preparation and delivery of parts to the ATV assembly lines. Similar on-site Consolidation Centers have been created at Honda automobile production facilities in Ohio, Alabama and Indiana, as part of a strategy to increase efficiency and flexibility, and to reduce the environmental footprint of Honda operations.
HSC's current employment of approximately 600 Associates will remain unchanged as a result of these announcements. Honda products are manufactured in the U.S. using domestic and globally-sourced parts.
09-11-2009, 03:33 PM #2
as i said in the seadoo side of the forum, the issue is that dealers are still selling "NEW" 05-06 watercraft since they made so many of them. many were doing buy 1 get 1 and other incentives. Honda watercraft are in no way disappearing all together but they made the right decision to sell what the dealers have in stock before they make the new 2010 models. all in all what honda is doing is trying to help their dealers get rid of standing inventory.
09-11-2009, 04:42 PM #3
- Join Date
- Sep 2007
09-12-2009, 11:05 AM #4
Upon hearing this news, I spent yesterday talking with representatives from the American Honda Corp. and national Powerhouse dealer network. This is not an obituary, this is exactly what is written, a postponement.
Right now, the newly appointed chairman of Honda Motorsports (the name escapes me right now) is a very conservative one. Relocated from his position of CEO of Honda South America, he now is in charge of everything Honda Motorsports does internationally.
Upon taking this position he was quoted as saying, "We need to focus our efforts on selling the product we already have. Once that is done, then we can organize ourselves in building new product." This is why Powerhouse dealers have been "gently nudged" to move all the pre-2009 PWC as fast as possible.
Mind you, here's some very interesting tidbits: Honda PWC are sold in only FOUR COUNTRIES! Canada, USA, New Zealand, and Australia. No Central and South America, no European continent, no East and South East nations. I find this exceptionally bizarre.
I believe, as do the gentlemen I discussed this with yesteday, that this is the year that Honda tightens its belt without dumping additional product down on its dealers and that this effort will produce a leaner, more efficient Honda dealer network for when the economy picks up.
09-12-2009, 02:48 PM #5
I'm surprised they don't sell them in Japan. Interesting.
09-12-2009, 03:22 PM #6
I do not own a Honda nor do I really ever plan to. Nothing against the crafts at all, just not what I am looking for.
With that said, I was really worried when I saw the title of this thread....then relieved once I read what it said. It is important that there is a good product mix of PWC's available and from a range of manufacturers. The last thing an industry like this facing some of its harder times needs are companies dropping out.
I commend Honda for going into kind of a "low power" mode to keep their pwc line going, but not being stupid about it. I wish Polaris would have made a similar decision five years ago.
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