P.M. BRIEFING : Honda to Cut U.S. Car Production

Honda Motor Co. announced today that it will cut production of automobiles for the U.S. market by 3%, based on projections that demand will weaken because of the Persian Gulf War and the slow U.S. economy.

The production cuts will have no impact on Honda’s employment in Japan or the United States, the company said.

Honda said it will reduce production by 25,000 units, or 2.9% of its annual U.S. sales based on its 1990 total of 854,879.

Honda of America Manufacturing will cut output at its Marysville, Ohio, plant by 5,000 units from January through March. It has a capacity of about 360,000 units annually.

Two Honda plants in Japan, at Sayama and Suzuka, will cut production by 20,000 units during February and March. This represents a reduction of about 5% of the planned export to the U.S. market during 1991, the statement said.