AutoBeta(AutoBeta.net)04/22 Report--

On April 21, Honda announced on its website that some of Honda's Japanese factories would cut production by about 50% in early May. Honda said that due to the recent long-term shortage of semiconductors and multiple uncertainties such as the epidemic, Honda plans to reduce vehicle capacity at its two factories in Japan from April to early May. The two production lines at the Suzuki plant in Sanchong Prefecture both cut production by about 50% in April and May. The jade factory in Suoyu county will cut production by about 70 per cent in April and plans to resume normal operations in early May. In addition, Honda stressed that due to the blockade of the epidemic and the shortage of semiconductors and other factors, the production situation after April is currently uncertain.

In fact, Honda announced production cuts only on the 7th of this month. At the time, Honda said that due to the spread of the epidemic and parts shortages and other factors, Honda's main Japanese plant expanded to reduce production in April, of which Suzuki plant cut production by about 30% and Saitama plant by about 10%. After the April production reduction, compared with the previous plan made in February, the April production reduction reached 30%.

Honda's announcement of another production cut means that the production capacity of the two factories will be slashed again. According to the production reduction information released by Honda, the Suzuki factory has been more affected by the production reduction than the Suzuki factory. As of April 18, the hybrid model of the SUV model "VEZEL" has been extended to more than half a year, while the "N-series" of light cars is about 3-4 months.

According to Honda's official website, the two factories Honda plans to cut production are Honda's main factories in Japan. They are located in Tauri District, Saitama Prefecture (Saitama Factory) and Suzuki City, Mitsuki Prefecture (Suzuki Factory). Among them, the Saitama factory, which is located in Jijucho, Dali District, Saitama Prefecture, has only one production line. The plant started production in July 2013 and has an annual capacity of 250000 vehicles. The main models include Civic, CR-V, FREED, INSIGHT and Honda e. The Suzuki factory in Suzuka City, Sanzhong County has two production lines with an annual production capacity of 530000 vehicles. Line 1 mainly produces models including N-BOX, Fit, JAZZ, Shuttle, Vezel and HR-V, while Line 2 mainly produces models including N-BOX, N-VAN, N-WGN and N-ONE.

Honda Motor Co., Ltd., founded in September 1948 as Honda Technology Research Industry Co., Ltd., is a multinational motor vehicle manufacturer listed on both the Tokyo Stock Exchange (TYO) and the New York Stock Exchange (NYSE), according to public information. Honda's domestic joint ventures include Guangzhou Automobile Honda and Dongfeng Honda, among which Guangzhou Automobile Honda was established in July 1998 and jointly funded by Guangzhou Automobile Group and Honda Technology Research Industrial Co., Ltd. the two sides each hold 50% of the shares, and the term of cooperation is 30 years. Dongfeng Honda was established in July 2003, co-founded by Dongfeng Motor Group Co., Ltd. and Honda Technology Research Industry Co., Ltd., 50% each. Honda, as one of the four major Japanese brands, has a 15% share of the Japanese market, second only to Toyota.

Affected by the epidemic and the supply chain, Japan's auto industry has been hit hard. Public data show that in the 2021 fiscal year to the end of March this year, domestic new car sales were 4.21 million, the lowest in 45 years. Of Japan's eight major car companies, with the exception of Mitsubishi, the other seven saw a decline in sales, with Mazda the biggest decline, down 16%.

According to the concerned statistics of the automobile industry, affected by the spread of the COVID-19 epidemic and the instability of the supply chain and other factors, a number of Japanese car companies have announced to reduce or stop production. On April 21, Hino Motors announced that a production line at the Hanamura plant in Tokyo's Hanamura city, which makes pickup trucks, would be suspended for two days on April 28 and 29. On April 18, Toyota announced that a number of Japanese factories would stop production for several days in May, including the Takaoka plant in Toyota City, Aichi Prefecture, and the Takahara Plant in Tanhara City, Aichi Prefecture, a total of 9 factories and 10 production lines. As a result, Toyota also announced that it would reduce global production by 10% to 750000 vehicles in May. On April 15, Mazda officially announced that the Hiroshima and Fangfu factories in Japan would stop production for 4 days from the 21st to 26, plus the previously mentioned suspension of production from 21 to 26. This month, two Mazda factories in Japan stopped production for a total of 8 days. On April 5, Mitsubishi Motors announced that the production line of Mitsubishi Motors' main Japanese plant Okazaki (Okazaki City, Aichi Prefecture) would be suspended from April 11 to 15 for a total of five days. Among the above-mentioned car companies, the reason for the shutdown or reduction of production is that some parts and components are blocked due to the epidemic and supply chain disruption.

In addition to the Japanese market, at present, the entire automobile industry is facing a situation of rising raw material prices, tight spare parts supply chains, and chip shortages. According to the Guangzhou Municipal Bureau of Industry and Information Technology, due to the epidemic, rising raw material prices and other significant impact on Guangzhou automobile industry production, Guangzhou Automobile Honda, Guangzhou Automobile Toyota, Dongfeng Nissan and other major vehicle production enterprises have some production lines shut down, semi-stop production.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat