At the beginning of August, the Honda factory in the city of Suzuka, in western Japan, is expected to reduce its production by up to 30%
According to information disclosed by CNN Brasil, the automobile company Honda should reduce its production in Japan by up to 30% over the next month compared to original forecasts, given the persistence of logistics problems and the multinational's supply chain.
about honda
Honda Motor Company corresponds to one of the most important car and motorcycle manufacturers in the world. Founded in 1946, the company is headquartered in Japan but exports its vehicles across the globe.
Since 1959, Honda has held the title of the largest motorcycle producer in the world, having reached the production of 400 million units at the end of 2019. In addition, the company is also the world's largest manufacturer of internal combustion engines measured by volume, with its annual production of internal combustion engines equivalent to 14 million units.
In 2001, the multinational became the second largest car manufacturer from the Japan. In 2015, Honda was ranked as the eighth largest car producer in the world.
It is also worth mentioning that, in addition to its main businesses in the automobile and motorcycle sector, the company also produces garden equipment, marine engines, personal watercraft, power generators, among several other products.
There will be a reduction in Honda production in Japan during this month and next
Last Thursday night (the 21st), Honda informed that two lines at the automaker's factory in the city of Suzuka, in western Japan, will reduce production by around 10% during this month of July, in addition to the reduction by around 30% in early August compared to previous plans.
In addition, the assembly plant in Saitama Prefecture, located north of Tokyo (capital of Japan), will also have a drop of about 10% in production at the beginning of next month. Honda did not communicate the monthly production target.
The turbulent scenario the company is going through may be related to the fact that vehicle manufacturers have not been able to overcome the impacts caused by the latest lockdowns in China, nor by the shortage of semiconductors.
Under this bias, Toyota also announced, last week, that its global production for the month of August would be, on average, 700 thousand units, which represents a cut of approximately 18% compared to the plans established at the beginning of this year.
Honda, in turn, adjusted its production plan in May, but had stated that it would return to normality in early June, which did not happen.
Also read this article: Multinationals unite to build new factory and address global semiconductor shortage
The multinational GlobalFoundries and the Franco-Italian STMicroelectronics, one of the largest semiconductor companies in the world, are teaming up to build a new factory in France. With interest in the project and with the objective of supplying semiconductor shortages, the government of France will provide subsidies for this realization.
Based in Crolles, in the south east of the European country, the facility is to be jointly operated by the two companies, while receiving essential public financial support from France.
The investment of multinationals and the government to supply the scarcity of semiconductors is estimated at a total of more than US$ 5,7 billion, which in direct conversion is equivalent to R$ 30 billion. There are no details of how the division of the amounts that will be invested will be for each of those involved.
To access the full article, click here.
