Honda To Cut Output By Up to 40 Percent At Japanese Plants

Honda is cutting production output by up to 40 percent at two Japanese factories for the rest of the month for… you guessed it: supply chain and logistical issues.

Reuters reports these cutbacks could be seen as a warning sign that many automakers won’t be able to raise production volume in the second half of the financial year that ends in March of 2023. Many companies were hoping to boost output to make up for the drop in production that was seen earlier in the year due to those same chip and supply chain problems.

The news outlet says Honda’s assembly plant in Saitama prefecture – which is north of Tokyo – is going to cut output by about 40 percent this month. At the same time, two lines at Honda’s Suzuka plant in western Japan are going to cut production by around 20 percent this month.

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.

The automaker said last month it would slash vehicle production at Saitama by 40% and at Suzuka by 30% for early September.

Reuters says that production at the two impacted plants finally returned to normal in June of this year after a separate production reduction in early 2022. However, by July the company was already making adjustments to production targets.

On the other hand, the outlet reports that Honda’s chief rival, Toyota, is still feeling good about its production plans. That company is keeping its record global production target of 9.7 million vehicles for the current financial year ending in March of 2023.

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Toyota said recently, that it expects to build 850,000 vehicles globally in September, and that’s just the beginning. The automaker plans to raise production through November.

So, while Honda may be having a bit of a rough go of it, it seems that not every company is in the exact same boat.