Honda to reduce production in Japan by up to 40% due to supply chain issues

Honda Motor Co (7267) said earlier this week it planned to cut output in Japan by up to 40% early in September, as supply chain and logistical issues persist.

Production at Honda’s assembly facility in Saitama prefecture will be reduced by almost 40% early in September, the auto maker said.

Meanwhile, two lines at Honda’s Suzuka facility will cut production plans by about 30% early next month.

Additionally, the company’s Saitama and Suzuka plants will slash output by about 10% and 30% respectively for the remainder of September.

The pandemic and semiconductor shortages were the main factors behind delays in parts deliveries and logistics, Honda said. Those will probably affect production of a number of vehicles such as the Vezel sport-utility vehicle, the Stepwgn minivan and the Civic compact car.

The shares of Honda Motor Co Ltd closed higher for the sixth time in the past ten trading sessions in Tokyo on Friday. The stock edged up 0.11% (JPY 4.0) to JPY 3,654.0, after touching an intraday low at JPY 3,648.0 and an intraday high at JPY 3,689.0 respectively.

The shares of Honda Motor Co Ltd have risen 13.13% so far in 2022, following another 12.25% gain in 2021.