American Honda Motor Co., Inc. Shares Response to Coronavirus
Automakers across the nation have made serious adjustments to help contain and minimize the possibility of spreading the coronavirus. The American Honda Motor Company is among the latest to announce amended operating procedures based on the current environment.
Consumer demand has depleted rapidly and it’s also been a challenge for auto companies to have all the necessary production materials delivered to their facilities. Honda headquarters released a statement outlining their safety procedures in response to the unprecedented COVID-19 situation. The company is taking additional measures to help ensure safety and help maintain their current business model.
Honda announced that the company will adjust all automobile production at its facilities in the U.S., Canada, and Mexico as a result of lower projected consumer demand and economic uncertainty interrelated with the COVID-19 pandemic. The impacted U.S stations are located in Ohio, Indiana, and Alabama. Beginning on March 23, Honda will suspend its production for six days. The company expects production to come back online on March 31.
Affiliated Honda transmission and engine facilities will also suspend production concurrently. During this time period, Honda will diminish production by 40,00 vehicles by March 31. The production adjustment will impact 27,600 Honda associates; they will continue to receive their full pay during the temporary closure. Honda also plans to use this time to align their sales strategies and objectives with consumer demand. The company will further evaluate market decisions based on how the COVID-19 situation continues to develop.
Further Safety Measures and Social Distancing
During the temporary production halt, Honda will perform a deep clean of all production facilities and their general workplace areas for the protection of employees. Previously, Honda shared that they implemented visitor screening procedures at all facilities to minimize health risks for employees. Like other large companies, Honda is following health recommendations from the CDC and encouraging its employees to monitor their health status carefully and continuously.
The automaker is also following social distancing guidelines, which refers to the act of distancing oneself from others to help prevent the spread of an infectious disease. Honda’s social distancing protocols include “staggering” lunch schedules as well as allowing employees to work virtually where applicable.
Additional Employee Benefits
How companies are responding to the COVID-19 crisis speaks volumes on how they care for their employees. Honda’s outlined employee benefits demonstrate the company’s commitment to making such a challenging and uncertain time a bit easier, especially compared to other larger corporations’ contingency programs. The company’s employee benefits program not only assists them, but also their family members directly affected by the COVID-19 virus.
Employees will be given temporary paid leave to support themselves if they are directly impacted. The temporary leave program also helps employees to ensure that they have childcare or for other dependents in need. At this point, there have no known instances of an employee with the virus at Honda. All things considered; it sounds like Honda is doing all possible to keep up business as usual during such an unusual time period.