Honda cuts car production by up to 40% in Japan due to supply problems

Honda cuts car production by up to 40% in Japan due to supply problems

TOKYO (Reuters) – Honda Motor Co. said on Thursday it will cut auto production by up to 40 percent at two Japanese plants in early October due to ongoing supply chain and logistical problems.

The cut provides further evidence of the problems automakers are likely to face in trying to ramp up production volumes in the second half of the fiscal year through the end of March to offset shortages caused by persistent chip shortages and supply chain disruptions in the first half of the business year.

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

The automaker also said Thursday that it will cut auto production in Saitama by about 40% and in Suzuka by about 20% for the rest of September.

Honda has blamed delays in receiving parts and logistics for the coronavirus outbreak and a shortage of semiconductors. The production cut will affect a variety of vehicles, including the Vezel SUV, the Stepwgn minivan and the Civic compact car.

The company said earlier that Honda’s production at these two plants returned to normal in June after an earlier cut, but it began making adjustments again next month.

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