TOKYO (REUTERS) - Honda Motor said Thursday (Aug 25) it would slash production plans by up to 40 per cent in Japan early in September due to persistent supply chain and logistical issues.
The news comes as Japanese automakers have been cautiously optimistic that the chips shortage causing repeated production cutbacks is already easing.
Honda's assembly plant in Saitama prefecture, north of Tokyo, will cut production by about 40 per cent, while two lines at the Suzuka plant in western Japan will reduce production plans by about 30 per cent.
Honda blamed delays in receiving parts and logistics due to bottlenecks caused by the Covid-19 pandemic and semiconductor shortages.
The cutbacks will affect production of a variety of vehicles, such as the Vezel sport-utility vehicle, Stepwgn minivan and the Civic sedan.
The Saitama and Suzuka plants will cut production by about 10 per cent and 30 per cent, respectively, for the rest of the month, Honda said.
The automaker adjusted its production plan in May but had said it would return to normal in early June.
Honda's rival, Toyota Motor, 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 onwards.
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.