Honda halts 3 plants in China to cut output amid declining sales

[冖_冖]

Honda halts 3 plants in China to cut output amid declining sales

Honda Motor Co has temporarily halted production at all three factories operated in a joint venture with Dongfeng Motor Corp in the central Chinese city of Wuhan to reduce output amid declining new car sales, sources familiar with the matter said Wednesday. Dongfeng Honda Automobile Co has...

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Honda halts 3 plants in China to cut output amid declining sales​

Today 06:30 am JST

Honda Motor Co has temporarily halted production at all three factories operated in a joint venture with Dongfeng Motor Corp in the central Chinese city of Wuhan to reduce output amid declining new car sales, sources familiar with the matter said Wednesday.

Dongfeng Honda Automobile Co has decided to stop the operation of the three production bases in the Hubei Province city from Aug. 26 through Wednesday due to high inventories. The joint venture has an annual capacity to manufacture 720,000 units.

In late August, Dongfeng Honda began consulting workers who may be willing to apply for voluntary layoffs. Chinese media have reported the company plans to slash some 2,000 employees.

Honda has seen sales in China sharply drop amid an intensifying price war in the world's largest auto market, where electric vehicle sales have been rising due in part to government subsidies.

Japanese carmakers have been slow to embrace EVs and are struggling to maintain market share globally amid stiff competition from EV makers such as Tesla Inc. and BYD Co.

In August, Honda saw its new vehicle sales in China dive 44.3 percent from a year earlier, down for the seventh straight month.

The Japanese automaker has decided to halt production later this year at one Dongfeng Honda factory as well as one plant of GAC Honda Automobile Co, a joint venture with Chinese state-owned automaker Guangzhou Automobile Group.

 

[Viet]

That’s expected. The germans will soon follow. The future is bleak. Time to go home.

 

[Antonius123]

That’s expected. The germans will soon follow. The future is bleak. Time to go home.

Dont want to try France?

 

[Viet]

Dont want to try France?

France?
You mean French cars in China? the market share of French cars is under %1. That’s too little to survive. In few years will be 0.1%.
If you mean French cars in Germany, the picture is better. The French make good cars, not as good as German cars, but Ok.

 

[ety]

Time for Japanese to close the automobile production facilities in China. They have made enough money from Chinese consumers in the last decades. It's time for Japanese to buy Chinese EVs in return.

 

[drkrn86]

Future looks in favour of EV's owing to government support.
This trend is seen all across the globe.
Japanese companies can atlleast shift to hybrid cars, a field in which they are market leaders.