Honda halts five China plants, losing 240m yuan daily

Shanghai, May 28 (Gasgoo.com) Honda Motor Co., Japan's second- biggest carmaker, has so far halted four of its Chinese auto assembly plants, and one parts plant in Foshan, in southern China's Guangdong province, where hundreds of employees went on strike on May 17 due to strong dissatisfaction over wages and benefits.

According to data roughly estimated by industry insiders, the four vehicle plants and the parts plant halted may cause Honda daily loss of 240 million yuan ($35.1 million). Meanwhile, Honda's other parts suppliers have also been influenced by the walkout and some plants begin to give workers time off.

Yesterday, Honda China has confirmed that, due to parts supply disruption of four Honda vehicle assembly plants in China, including two Guangzhou Honda assembly plants, one Dongfeng Honda vehicle assembly plant and the Guangzhou-based Honda Automobile (China), which makes models for export, have all halted production. At present, Honda has no timetable for resumption of the four vehicle manufacturing plants.

Reportedly, some Honda parts suppliers in China, affected amid the strike, have started adjusting their production plans. 

Apart from the models to be exported, seven of Honda China models like C-RV, Spirior and Civic have been impacted currently.

A Honda annual report in 2009 shows that Honda sold 790,000 vehicles in the Asia-Pacific region in 2009, with China sales reaching 580,000 units (worth 81.6 billion yuan) and the average price of a vehicle over 100,000 yuan.