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Honda to take huge step due to supply chain problems

Honda attributed logistics and COVID-19 outbreaks as the cause of parts delivery delays

As a result of continued supply chain and logistical issues, Honda Motor Co announced it would curtail car production by up to 40% at two Japanese plants starting in early October.

The reduction offers more proof of the difficulties automakers will likely encounter when attempting to boost production levels in the second half of the fiscal year through the end of March in order to make up for a shortfall brought on by a persistent chip shortage and supply chain disruptions in the first half of the fiscal year.

Honda’s assembly factory in Saitama prefecture, north of Tokyo, will reduce production plans for the period by around 30%, while two lines at its Suzuka plant in western Japan will reduce production by nearly 40% in early October.

Honda also announced that for the remainder of September, it would reduce vehicle production in Saitama by roughly 40% and at Suzuka by roughly 20%.

Honda attributed logistics and COVID-19 outbreaks as the cause of parts delivery delays. A number of vehicles, including the Vezel sports utility vehicle, Stepwgn minivan, and Civic compact car, will experience the output reduction.

After a previous drop, Honda’s production at those two factories returned to normal in June, but the company indicated previously that it started making changes once more the following month.

Meanwhile, Honda Motor recently announced cooperation with trade firm Hanwa Co to ensure a steady supply of metals used in batteries for electrified vehicles.

In the medium to long term, Honda Motor would be able to access crucial metals like nickel, cobalt, and lithium through the collaboration, it was stated in a statement.

As the manufacturing and sales of cleaner, electrified cars increase due to stronger environmental restrictions, obtaining those components will be one of several difficulties faced by manufacturers across the globe.

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