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

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 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