Honda Motor to Cut Output Over Chips, Covid-19 Curbs

Honda will next month establish a standalone business unit to oversee the development of its EV and battery business. Photo: Reuters

Honda Motor is planning to cut production by about 50% on two lines of one of its domestic factories in early May due to chip shortages and Covid-19 lockdowns, the company said on Thursday.

The factory in the city of Suzuka will also slash its production by half for the month of April, expanding the scale of the cutback from an earlier announcement that it would cut back production by about a third.

The company said the persistent semiconductor shortage as well as uncertain geopolitical affairs had caused delays in logistics and parts arrival.

A factory in Saitama prefecture would also reduce production by a third in April but is planning to restore normal operation in early May, the company said.

Reuters, with additional editing by George Russell

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.