TOKYO — Honda Motor Co. will reduce production by up to 40 percent at two Japanese plants for the rest of the month due to ongoing supply chain and logistical problems.
The reduction could be seen as a warning that automakers may not be able to lift production volumes in the second half of the financial year to make up for a dent caused by a persistent shortage of chips and supply chain disruptions in the first half of the business year.
Honda‘s assembly plant in Saitama prefecture, north of Tokyo, will slash output by about 40 percent this month. The plant builds models including the Civic, CR-V and Honda e, according to Honda’s website.
Two lines at its Suzuka plant in western Japan will cut back production plans by about 20 percent in September. The factory builds models including the Jazz/Fit and HR-V.
Honda blamed delays in receiving parts and logistics on COVID-19 outbreaks and semiconductor shortages.