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Honda Cutting Production by 40% in Japanese Plants

Honda Dealership - Image by StockSnap

Honda is the latest automaker to be hit with supply chain issues, cutting production at two Japanese plants by up to 40%.

The auto industry has been especially hard hit by the semiconductor shortage and supply chain issues. Companies have had to scale back production, cannibalize some models to finish others, and ship some vehicles without their full complement of electronics.

Honda is the latest to have issues, according to Reuters, and is cutting production as a result. In early October, the company plans to reduce production by 40% on two lines at its Suzuka plant in western Japan. The plant in the Saitama prefecture will reduce production by roughly 30%.

In the meantime, Honda plans to reduce its Saitama production by 40% in September while also reducing Suzuka production by 20% for the rest of the month.

Honda’s announcement illustrates the ongoing challenges automakers are facing, even as much of the world is rushing to return to normal. It’s still unclear how long supply chain issues will last or when automakers will be back to full production.