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

Article by Christian A., 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

Recommended

Ever since the Regera premiered in 2016, Koenigsegg has been firm about increasing its coverage around the globe. Part of the idea was to ask its employees in Angelholm to...
by - February 21, 2017
There is no harm in admitting that both the conventional and the hybrid versions of the Lexus LC 500 are real stunners when it comes to its exterior styling. Even...
by - February 21, 2017
Jaguar is placing three new Ingenium engines on the F-Pace crossover, XF saloon and XE sedan for the 2018 model year. According to Jaguar’s recent announcement, the updates will also...
by - February 21, 2017
After Volkswagen snagged Toyota’s crown as the world’s best-selling automaker, there’s no stopping the Japanese manufacturer from dominating the hybrid arena. As of January 31st , Toyota’s increasing global unit...
by - February 21, 2017
There is no denying that the performance versions of the Jaguar F-Type and the Land Rover Range Rover are definitely hot – both in terms of looks and road dynamics....
by - February 21, 2017
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