The affected models include the Honda Civic, Vezel and Stepwgn.
Honda Motor Co said on Thursday it will cut production in Japan by up to 40 percent in early September due to ongoing supply chain and logistics issues. The development came despite Japanese automakers being cautiously optimistic that chip shortages that have caused repeated production cuts are easing.
Honda said its Saitama assembly plant will cut production by about 40 percent early next month. Two lines at the Suzuka plant in western Japan will cut production plans by about 30 percent in early September. The automaker attributed the decision to delays in getting needed parts and logistics due to Covid-19 and semiconductor shortages. This decision will affect the production of various vehicles, such as Vezel SUVs, Stepwgn minivans and Civil compact car.
Honda adjusted its production plan in May, but said it would return to normal in early June this year. Another Japanese auto giant Toyota remains upbeat on its production plan, maintaining a record global vehicle output of 9.7 million vehicles for the current fiscal year ending in March 2023 and saying the outlook for production and sales will improve from August. Toyota said this month that it plans to produce about 850,000 vehicles worldwide in September and will aim to increase production by November.
meanwhile, Honda also said its plant in the Chinese city of Chongqing would remain closed this week as the local government extended an order to curb power use and shut down plant operations. China’s power shortage has affected a number of other automakers, including Toyota and Honda, as well as several auto component makers. Speaking on the matter, Honda told Reuters that it will closely monitor the situation as it develops and decide on the status of the plant’s operation next week and beyond.
Date of first publication: August 25, 2022, 5:32 PM IST