Honda to cut output at Japan plants by up to 40% due to supply snags

TOKYO -- Honda Motor Co. will reduce production by up to 40 percent at two Japanese plants for the rest of the month due to ongoing supply chain and logistical problems.

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 make up for a dent caused by a persistent 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 slash output by about 40 percent this month. The plant builds models including the Civic, CR-V and Honda e, according to Honda's website.

Two lines at its Suzuka plant in western Japan will cut back production plans by about 20 percent in September. The factory builds models including the Jazz/Fit and HR-V.

Honda blamed delays in receiving parts and logistics on COVID-19 outbreaks and semiconductor shortages.

Honda's production at the two plants returned to normal in June after an earlier reduction but the automaker began making adjustments again the next month.

Honda rival Toyota has remained bullish on its production plan, maintaining its record global vehicle production target of 9.7 million for the current financial year to end-March 2023, 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 seek to raise production through November, depending on supplies of parts and personnel.