UK: Honda to cut production because of parts shortage image

Honda Motor (7267.T) said the company will cut production in the UK by 50 percent from 11 April until the end of May because of a shortage of parts from Japan.

The 3,000 workers at the plant in Swindon, Wiltshire, will remain on full pay, and the move will lead to 22,500 fewer cars being built, although Honda said it will make up the production by the end of the financial year.

The plant makes about 165,000 Civics, CR-V compact SUVs, and Jazz superminis a year and is braced for a shortage of electronic, electrical and brake parts. Each car comprises about 20,000 parts, 10% to 15% of which come from Japan.

Ken Keir, Executive Vice President, Honda Motor Europe stated, “We’ve taken the decision to reduce our production volumes at HUM as it enables us to continue with our manufacturing activities, thus minimising the impact on Honda customers, dealers and Associates. We appreciate everyone’s understanding, customers and dealers, during these challenging times.”

The situation is likely to ease shortly when parts start being produced later this week as the five Honda factories in Japan restart production after power and infrastructure checks.
Meetings are ongoing and a decision is likely to be made later this week.
Other car makers have also been hit by the supply shortage from Japan; Ford closed its European car plant in Genk, Belgium for five days this week.