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Honda hit by new strike in China
Posted: 08 June 2010 1437 hrs

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SHANGHAI : Honda Motor said Tuesday a new strike had hit a Chinese joint venture between its subsidiary Yutaka Giken and a Taiwanese company that produces exhaust components.

The walkout at Foshan Fengfu Autoparts Co Ltd began during the first shift on Monday, a Honda spokeswoman in Tokyo said, days after another strike that crippled the firm's nationwide production came to an end.

"The local venture is handling the situation, not Honda directly," said Honda spokeswoman Natsuno Asanuma, stressing the tie-up was run by one of the automaker's subsidiaries.

"We are collecting information now, but we expect no immediate impact to our production in China for now."

The joint venture plant in Foshan city, southern Guangdong province, provides mufflers and other exhaust system parts for assembly plants run by Guangqi Honda Automobile and Dongfeng Honda Automobile.

The factory is owned 65 percent by Japan's Yutaka Giken and 35 percent by Taiwan's Moonstone Holding Ltd, according to its website.

A Beijing-based Honda spokeswoman said production at Guangqi Honda was not affected yet because it had a good inventory supply.

"If the strike lasts, it would have some impact," she said, adding it remained unclear how many workers at the factory, which employs more than 400 people, were involved.

There were no details of what the strike was over but comes after Honda's Chinese production was brought to a halt for more than a week by a walkout over pay at its parts unit in Foshan. Output resumed on Friday after the car giant offered a 24 percent pay rise.

- AFP /ls

 



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