Honda Isn’t Out of the Supply Chain Woods Just Yet
Honda continues to get battered by supply chain issues despite its rival, Toyota, steadily moving ahead with production.
Written by Preston Charles
Reviewed by Kathleen Flear
The supply chain woes continue to haunt the automakers and Japan-based juggernaut,
Honda
, is being transparent with shareholders in letting them know that the belt will continue to be tightened for a bit longer. Despite trying to weather the storm and keep the course, Honda Motor Co said it would slash up to 40% of its production in Japan this month as the chip shortage carries on for longer than expected.
What are the broader effects?
The move signifies that the supply chain haze caused by Covid (and exacerbated by the war in Ukraine) lingers on despite the headway made in managing the virus.
It’s yet another head-scratcher for economists as they attempt to determine and predict the movement of the global economy.
As the
Financial Posts
discusses, the specific plants that will be scaling back production are in Saitama, north of Tokyo, and Suzuka in western Japan. The Saitama plant will cut production by 40% starting next month, and the Suzuka will reduce by 30% and go from there. The disruption will affect several Honda models including the Vezel SUV, Stepwgn minivan, and the ever-popular
Civic R
. Fortunately for the American market, Honda EVP of Business and Sales for American Honda Motor Company, Dave Gardiner, doesn’t think the setback in Japan will hinder production stateside.
“I can tell you from Honda's perspective is that we are making all the necessary steps for the second half of our fiscal year, which starts October 1, to be able to produce as close to capacity in our North American factories as we can," Gardiner said.
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The larger auto landscape
Honda adjusted their production plan in May but said it would resume to normal by June. Time has made clear that isn’t exactly the case.
What about their in-country rival, Toyota? They somehow seem to float above the issues as they remain bullish on their record-setting goal of 9.7 million new cars delivered globally for their financial year ending in March 2023.
As Honda pumps the brakes on production, Toyota seems to nearly be taunting them with their aim of delivering 850,000 units in September alone! Moving into the fall they believe they’ll only be able to build on that number.
MORE: Is Your Honda Susceptible to Hackers?
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