"The current sales market in North America is acutely challenging for everybody. We always keep an eye on our dealer inventory to make adjustments as they're required, so that's why we're doing it," said Honda spokesperson Colin Fisher.

HCM typically shuts down production during the Christmas season, restarting in the New Year. This year the shutdown will start Dec. 22, two days earlier than previous years.

Honda has also announced it is canceling previously scheduled weekend overtime hours in January, also because of the slowdown in demand.

Honda associates learned the news Friday. While the shutdown is happening two days earlier, employees will have options in how they treat the days. They can use vacation days or lieu time, or they can take unpaid leave without affecting their bonus. Associates can also report to work, and will be assigned non-production related jobs, such as possibly painting or cleaning, said Fisher.

The auto-production sector in Ontario continues to struggle, while the Big Three - Ford, Chrysler and General Motors - are looking to governments for financial assistance. The latest blow to auto workers came last week, when Newmarket-based auto parts maker Magna International announced it was closing factories in Newmarket and Aurora, and laying off 850 people.

Fisher wouldn't comment on how Honda of Canada is doing compared to the Big Three.

He said no other production cancellations were planned, but HCM would continue to keep an eye on consumer demand to manage inventories.

The two Alliston Honda plants produce about 3,200 vehicles per day, including the Honda Civic, which is consistently one of the best selling vehicles in Canada and the United States.

For a more in-depth look at how the economic slowdown is affecting local car dealers and Honda Canada, watch for the story in this coming Wed., Dec. 3  edition of the Alliston Herald.

E-mail reporter Kurtis Elsner at kelsner@simcoe.com