Honda to cut output by up to 40% at Japan plants

Honda Motor said on Thursday it would reduce car output by about 40% at two Japanese plants for the rest of the month because of an ongoing supply chain and logistical issues.

The reduction could be seen as a warning that automakers may not be able to lift production volumes in the second half of the financial year to end of March to make up for a dent caused by the continued shortage of chips and supply chain disruptions in the first half of the business year.

Honda’s assembly plant in Saitama prefecture, north of Tokyo, will reduce output by about 40% this month, while two lines at its Suzuka plant in western Japan will reduce production by about 20% in September.

The automaker blamed delays in receiving components and logistics on COVID-19 outbreaks and semiconductor shortages. The output reduction will affect a range of vehicles, including the Vezel sports utility vehicle, Stepwgn minivan, and Civic compact car.