Honda is set to reduce car output by up to 40% at two Japanese plants for the rest of the month, due to ongoing supply chain and logistical issues.
The automaker’s assembly plant in Saitama prefecture, north of Tokyo, will slash output by around 40% this month, while two lines at its Suzuka plant in western Japan will cut back production by approximately 20% in September.
The reduction could be seen as a signal automakers may not be able to lift production volumes in the second half of the financial year to make up for the backlog caused by a persistent shortage of chips and supply chain disruptions in the first half of the business year.
Honda said the decision was a result of delays in receiving parts and logistics due to Covid-19 restrictions and semiconductor shortages. The output reduction will affect a number of vehicles, including the Vezel sports utility vehicle, Stepwgn minivan and Civic compact car.
The automaker said last month it would slash vehicle production at Saitama by 40% and at Suzuka by 30% for early September.
Honda’s production at those two plants returned to normal levels in June after an earlier reduction but it began making adjustments again the next month, the company previously said.
Rival Toyota Motor Corp remained bullish on its production plan, sticking to its record global vehicle production target of 9.7 million for the current financial year, saying its production and sales outlook would improve from August onwards.
Toyota said last month it expected to produce 850,000 vehicles globally in September and increase production through November, depending on supplies of parts and personnel.