Honda to cut production by up to 40% at its Japanese factories due to supply disruptions

Reuters

August 25, 2022, 2:55 p.m.

Last modification: August 25, 2022, 3:01 PM

The Japanese automaker said a recall affects 268,000 model year 2002-2006 CR-V vehicles in the United States to replace power window master switches Photo: Reuters

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The Japanese automaker said a recall affects 268,000 model year 2002-2006 CR-V vehicles in the United States to replace power window master switches Photo: Reuters

Honda Motor Co said on Thursday it would cut production plans by up to 40% in Japan in early September due to ongoing supply chain and logistics issues.

The news even comes as Japanese automakers have been cautiously optimistic that the chip shortage that has caused repeated production cuts is easing.

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

Two lines at its Suzuka plant in western Japan will cut production plans by around 30% in early September.

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

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

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

Honda rival Toyota Motor Corp remained bullish on its production plan, maintaining its record global vehicle production target of 9.7 million for the current fiscal year ending March 2023 and saying production prospects and sales should improve from August.

Toyota said this month it expects to produce around 850,000 vehicles worldwide in September and will seek to ramp up production through November, depending on parts and personnel supplies.

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