Honda to Cut Output by up to 40 Percent at Japan Plants on Supply Disruptions

Honda to Cut Output by up to 40 Percent at Japan Plants on Supply Disruptions
The Honda logo is displayed at the 89th Geneva International Motor Show in Geneva on March 5, 2019. (Pierre Albouy/Reuters)

TOKYO—Honda Motor Co. said on Thursday it would slash production plans by up to 40 percent in Japan early in September due to persistent supply chain and logistical issues.

The news comes even as Japanese automakers have been cautiously optimistic that chips shortage that caused repeated production cutback is easing.

Its assembly plant in Saitama prefecture, north of Tokyo, will cut production by about 40 percent early next month.

Two lines at its Suzuka plant in western Japan will reduce production plans by about 30 percent in early September.

Honda blamed delays in receiving parts and logistics due to COVID-19 and semiconductor shortages. It would affect production of a variety of vehicles such as the Vezel sports utility vehicle, the Stepwgn minivan and the Civic compact car.

The Saitama plant and the Suzuka plant would cut production by about 10 percent and 30 percent, respectively, for the rest of the month, the automaker said.

Honda adjusted its production plan in May but had said it would return to normal in early June.

Honda's rival, Toyota Motor Corp., remained bullish on its production plan, maintaining its record 9.7 million global vehicle production target for the current financial year ending in March 2023 and saying production and sales outlook would improve from August onward.

Toyota said this month it expected to produce about 850,000 vehicles globally in September and would seek to raise production through November, depending on supplies of parts and personnel.

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