Honda to cut production at two Japan plants amid parts shortage

Reuters
Autoblog



Honda Motor Co will temporarily cut back production in Japan due to difficulty in sourcing parts from China amid the coronavirus outbreak, Nikkei Asian Review reported on Monday citing sources at auto parts suppliers and dealers.

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The cutbacks, which will last for a few days beginning early March, will see a reduction in output by a few hundred vehicles at two plants in Saitama Prefecture, the report said.

Japan’s third-largest automaker has seen its profitability decline by more than half in the past two years, led by a series of quality-related issues.

Honda is joined by a host of other automakers whose production is affected by the virus. Hyundai halted work at a factory after workers tested positive for coronavirus. Toyota previously warned that operations at its plants in Japan may be affected by supply chain issues, not long after Nissan stopped work at a plant in Japan. Daimler and Jaguar Land Rover made similar warnings. A number of plants have closed in China, including Honda's. And of course, the Geneva Motor Show was called off due to virus fears, with digital press events currently underway instead. 

Reporting by Ashwini Raj in Bengaluru; Editing by Shailesh Kuber.

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