Widening worker unrest disrupted Toyota Motor Corp.'s car production in China for a third day, while Honda Motor Co. reopened two plants after a strike at a supplier ended.
Toyota's factory in Guangzhou, Guangdong province remains closed after output was suspended June 22 because of a walkout at supplier Denso Corp., the company said. Honda restarted two factories in the city as parts maker NHK Spring Co. said striking workers had returned.
Disputes have spread since Honda agreed last month to raise wages at a parts supplier by 24 percent to end a stoppage that halted its production in the world's largest auto market. The walkouts, which shut down at least eight car-parts factories in the past month, reflect a shrinking supply of low-cost labor in the nation.
"This illustrates the growing pains the Chinese auto industry is going through," said Ashvin Chotai, London-based managing director of Intelligence Automotive Asia Ltd., an industry consultant. "It's facing the same labor problems seen earlier in developed nations. Over the long term, manufacturers need to have a range of contingency plans," such as getting the same parts from multiple suppliers, he said.
Toyota fell 0.9 percent to 3,190 yen as of 9:32 a.m. in Tokyo trading, while Denso dropped 0.9 percent to 2,567 yen. Honda lost 1 percent and NHK Spring gained 0.4 percent.
Denso Strike
Toyota supplier Denso Guangzhou Nansha Co., a joint venture in Guangzhou, halted production June 22 as workers walked out demanding higher wages and improved benefits, said Toshihiro Nishiwaki, a spokesman for Denso.
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