Honda says its production in China fell 15.7 percent in May

Article by Christian Andrei, on August 29, 2010

For the month of May, Honda Motor Co.'s production dropped by 15.7%, signifying the first year-on-year drop in 12 months as the operations of its local assembly plants were forced to stop as there had been a workers' strike at its supplier.

Last month, Honda's production was halted several times at its four car assembly factories in China as it felt the impact of a protracted strike at a subsidiary's transmissions plant.

This incident, which ended with the workers getting higher wages and more benefits, led to three more strikes at suppliers for Honda and Toyota.

Last month, Honda had built 37,367 cars when production was interrupted in the last week.

In the early part of June, Honda also had to suspend production for a few days. In comparison, its fiercest competitors, Toyota Motor Corp. increased production by 17.9% and Nissan Motor Co. raised its output by 34.6% in May.

Toyota also felt the impact of supplier strikes this month. Analysts believe that these halts in production have limited financial impact since the carmakers could easily make up for the loss in production by operating during holidays and asking workers to go on overtime.

Topics: honda, china, production

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