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Honda announces plans to slash production as concern remains over supply chain issues

  • Supply chain shortages spark production cut at Honda plants
  • Output to fall by 40 per cent at firm’s Suzuka factory
  • Bosses also announce a 30 per cent decrease in Saitama as they plead for ‘understanding’ from customers
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Time 7:44 am, September 23, 2022

Honda has announced plans to slash production at two of its plants as the new car industry continues to battle supply chain issues.

The firm is still being rocked by Covid-19 as well as part shortages and will therefore reduce output at its Suzuka and Saitama factories in Japan starting in October.

Two production lines in Suzuka will fall by 40 per cent, while productivity at an assembly plant in Saitama will drop by 30 per cent, the Times reports.


The move will affect the building of the new Civic as well as the HR-V and the Stepwagon minivan.

In response to the latest development, Kohei Takeuchi, Honda’s chief financial officer, admitted that delays will further hit the outfit’s profits and pleaded with buyers for their understanding.

Honda has already been heavily hit by delays throughout this year, thanks largely to its reliance on Chinese labour.


The firm currently builds around 40 per cent of its cars in the country, which remains one of the hardest hit by the pandemic.

Local lockdowns, especially in Shanghai, have exacerbated supply chain issues, including the semiconductor crisis, sparking a shortage of vehicles being shipped around the world.

Last month, it was revealed that bosses were so concerned by the situation that they were considering building a whole new supply chain outside of China.

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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