Honda aims to reduce its Japanese car production by 4% in October

Article by Christian Andrei, on August 30, 2010

To cope with the dreaded end of government subsidies, Honda Motor Co. aims to reduce its Japanese car production by 4% in October compared with the July-September quarter.

A double-digit drop in domestic car sales is expected when subsidies expire on September 30. Media reports in Japan reveal that Toyota Motor Corp. told its suppliers that its domestic daily production could decrease by around 20% from October when compared to current levels.

The government's stimulus measures have benefited Toyota the most because the next-generation vehicles such as hybrids are favored. Toyota's Prius model, its topseller, dominates this segment.

Last Tuesday, Nikkei business daily reported that Toyota is cutting production at its Saitama factory to 1,800 units a day in October from the current 1,950 units.

This was later confirmed by a Honda spokeswoman. But when compared to figures a year ago, this would still be 24% higher. Toyota had suffered due to weak exports, a result of the economic crisis.

The spokeswoman also said that output at its other major plant, the Suzuka factory, will be the same. This means that overall domestic output would drop only 4%, a move that is in line with Honda's revised financial plans.

Japan's government subsidies will soon end but there is a separate scheme offering tax incentives on purchases of cleaner vehicles. The tax incentives will be effective until March 2012.

Topics: honda, japan, production

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Nearly a decade after Opel and sister brand Vauxhall introduced the Insignia large family car, these companies are now getting ready to unveil the second generation of this offering from...
by - December 7, 2016
After we caught a glimpse of the revamped Amarok, VW Australia once again wants to give its ute a sinister look inspired by the Mad Max movie franchise. The “Korama”...
by - December 7, 2016
Customers in the European market are known for leaning towards style and with this in mind, Nissan has revealed the special LEAF Black Edition. While the production run of this...
by - December 7, 2016
When Volkswagen unveiled the VW Atlas, it declared that this SUV is being developed for the United States and is set to arrive as a 2018 model. It also unveiled...
by - December 7, 2016
Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries