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

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

A Honda electric car is seen in Tokyo Motor Show in Tokyo, Japan on Oct 24, 2019. (File photo: REUTERS/Soe Zeya Tun)

TOKYO: Honda Motor Co said on Thursday (Sep 22) it would reduce car output by up to 40 per cent 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 per cent in early October, while its assembly plant in Saitama prefecture, north of Tokyo, will cut back production plans by about 30 per cent for the period.

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

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.

 

Source: Reuters/hw
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