Honda hopes for early resolution of China factory strike

Shanghai, May 28 (Gasgoo.com) Honda Motor has expressed its hope to reach an agreement with striking workers at a parts-making factory in southern China after production at all of its auto assembly plants in the country came to a halt this week due to parts shortage, Bloomberg reported.

On May 17, about 1,850 workers at Honda Auto Parts Manufacturing Co. in Foshan city, Guangdong province, went on strike demanding a pay raise. As auto parts ran short after the walkout, production at Honda's four assembly plants in China were suspended from May 24.

The carmaker's factories in China remain closed as some of the striking workers haven't accepted the company's proposed solution. Most employees are willing to return to work, and the local government is coordinating the talks, but Honda has no timetable to restore production in China plants.

The strike is the first to halt Honda's production in China and the company hopes to reach a satisfactory agreement as soon as possible. The action is a sign that automakers in China can expect rising labor costs.

The Chinese market accounted for 17% of Honda's global sales last year. The Honda brand ranked fifth in China's auto market by unit sales last month. Its China sales may increase 9% this year to 630,000 vehicles.

Honda Motor, Japan's No. 2 automaker, produces its Accord sedan, Fit compact and Odyssey MPVs in China with Guangzhou Automobile Group and its CRV sport utility vehicles with Dongfeng Motor Group.