Honda cuts output in Philippines due to Japan quake

Reuters (Manila) - The Philippine unit of Honda Motor Co. Ltd said it plans to reduce production volume by 50 percent from this month, due to a spare parts shortage following disruption caused by the March 11 earthquake in Japan.

Vehicle sales in Japan fell by more than a third in March as the earthquake, tsunami and resultant nuclear crisis wreaked havoc on assembly plants, parts manufacturers and the global supply chain.

Honda's subsidiary in the Philippines, Honda Cars Philippines Inc. (HCPI), said on its website late on Monday that it planned to reduce production at its plant in Sta. Rosa, Laguna, south of the capital Manila.

"Relative to the volatile situation in Japan and consequent reduction of parts supply from Honda Motor Co. Ltd., the HCPI is temporarily reducing 50 percent of its production volume from April 2011," the statement said.

The website, www.hondaphil.com, said Honda plants in Japan on Monday resumed production and the shipment of component parts for use in production in regions outside the country.

The company did not provide further details on its current production volume and whether it would translate to job cuts at its Philippine plant.

Honda Cars Philippines Inc promised to "closely monitor the situation and strive to resume normal production operations the soonest".

Honda markets the Accord, CR-V, Civic, City and Jazz models in the Philippines. In 2010, the country had total vehicle sales of about 168,500, growing by nearly 30 percent from the previous year, based on industry data.