TOKYO — Honda Motor Co. was largely spared from the July floods in Japan that washed out roads, killed scores of people and crippled production at rivals' auto plants.
Flooding in Mexico has been a different matter.
Honda suspended operations at its Celaya assembly complex June 28, when it was inundated with water released from a nearby dam after torrential rains filled the dam to dangerous levels.
Celaya's transmission factory has since restarted. But shipments to U.S. dealers of the Fit small car and HR-V subcompact crossover will be interrupted into November because of the flooding, Honda said. An engine parts shortage caused by the flooding of Celaya will also force Honda to suspend production of its newly introduced Insight hybrid sedan for a month as well.
The shutdowns had only a small effect on the company's fiscal first quarter, as the waters hit with just a few days left in the reporting period. Honda's sales outlook for the balance of the year, however, has been lowered, and the company expects an earnings hit.
The Celaya factory, which opened in 2014, makes the Fit and HR-V as well as engine parts for the Insight assembled at Honda's factory in Greensburg, Ind. The monthlong suspension of Insight output begins this month.