Honda Motor Co. said Wednesday it will temporarily close about a dozen factories in the U.S., Canada and Mexico for six days to respond to concerns about the rapidly spreading virus and in anticipation of lower consumer demand.

The Japanese auto maker will suspend production at these plants, which include those that assemble vehicles as well as build engines and transmissions, starting Monday -- a move that will affect 27,600 jobs, the company said.

Honda said all impacted employees will be paid during the downtime, which it anticipates will reduce factory output by about 40,000 vehicles.

The action marks the first time a major auto maker has initiated a region-wide shut down of its factories in North America to mitigate the impact of the outbreak.

In Europe, most global car companies have temporarily suspended work at their plants, and on Tuesday, Ford Motor Co. said it will have to close its Chicago plant for a short period of time due to a parts shortage.

More to come

(END) Dow Jones Newswires

March 18, 2020 09:39 ET (13:39 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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