Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Honda to cut car output by up to 40% in Japan on supply problems

Published 09/22/2022, 02:43 AM
Updated 09/22/2022, 03:46 AM
© Reuters. FILE PHOTO: The Honda Motor logo is pictured at the 43rd Bangkok International Motor Show in Bangkok, Thailand, March 22, 2022. REUTERS/Athit Perawongmetha/File Photo

TOKYO (Reuters) -Honda Motor Co said on Thursday it would reduce car output by up to 40% at two Japanese plants in early October because of ongoing supply chain and logistical problems.

The cutback provides further evidence of problems automakers likely face in trying to increase production volumes in the second half of the financial year to the end of March to make up for a shortfall caused by a persistent shortage of chips and supply chain disruptions in the first half of the business year.

Two lines at Honda's Suzuka plant in western Japan will cut back production by about 40% in early October, while its assembly plant in Saitama prefecture, north of Tokyo, will cut back production plans by about 30% for the period.

The automaker also said on Thursday it would cut vehicle production at Saitama by about 40% and at Suzuka by about 20% for the rest of September.

© Reuters. FILE PHOTO: The Honda Motor logo is pictured at the 43rd Bangkok International Motor Show in Bangkok, Thailand, March 22, 2022. REUTERS/Athit Perawongmetha/File Photo

Honda blamed delays in receiving parts and logistics on COVID-19 outbreaks and semiconductor shortages. The output reduction will affect a variety of vehicles, including the Vezel sports utility vehicle, Stepwgn minivan and Civic compact car.

Honda's production at those two plants returned to normal in June after an earlier reduction but it began making adjustments again in the next month, the company has said previously.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.