Honda reopens parts plant in China
By Andrew C., 30 Aug, 2010. 0 Comments
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Honda Motor Co.'s parts plant in China reopened as the company continues talks with some workers who have so far refused to accept its offer. Meanwhile, its four car-assembly factories in China, which shut down last week after the strike caused a shortage of parts, will be closed at least through Saturday, according to Takayuki Fujii, a Beijing-based Honda spokesman. The walkout last week had shut down all of the company's production in the country. To convince plant employees to go back to work, Honda offered a 24% pay raise. Many analysts, including Tianshu Xin, a Shanghai-based managing director at consulting company IHS Global Insight, believe that carmakers would have to anticipate the increase in wage costs in China. Xin predicts that labor costs will increase and for the manufacturers in China to remain competitive, he believes that they will have to impose cost-cutting measures and promote overall quality.
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