Honda cuts local output by half on Japan crisis

The local assembler of giant car maker Honda is slashing its production by half, which it said would be a temporary cut down, starting this month as a result of the multiple disasters that recently hit Japan that affected its parts production in its Japan headquarters.

Honda Cars Philippines Inc. (HCPI) said in a statement the volatile situation in Japan and consequent reduction of parts supply from Honda Motor Co. Ltd. forced them to correspondingly reduce local production.

“HCPI is temporarily reducing 50 percent of its production volume from April 2011. Meanwhile, Honda will closely monitor the situation and strive to resume normal production operations the soonest,” according to the statement.

Its Japan operation will resume production of finished automobiles at Sayama Plant at Saitama Factory (Sayama, Saitama) and Suzuka Factory (Suzuka, Mie) on Monday, April 11, 2011. This means all Honda production plants in Japan will be in operation as of that date.

Honda also resumed production and shipment of component parts for use in production in regions outside Japan yesterday, April 4.

However, as the situation with parts supply remains fluid, production of component parts and vehicles at Honda plants will resume at approximately 50 percent of the original production plan at the outset. Honda said it will carefully monitor the situation and manage its operations accordingly.

“Most of our Japan-based suppliers are making progress to restart production, and many either have or are ready to resume parts production. However, there are a few suppliers that have yet to resolve the challenge to resume their production. In those cases, Honda is working with its suppliers to help reestablish their operations, while evaluating other possible sources for those parts in the supply chain,” the statement added.

HCPI did not elaborate on the impact of the reduction in production to workers and as to when they can go back to full commercial operation.

Locally, it assembles Civic and City models where some of its parts are imported from Japan. Its CBU models CRV, Accord and Jazz are imported from Thailand and some of their components are also imported from Japan.  –Ayen Infante, Daily Inquirer