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Honda JV China plant halts output due to flooding

From Reuters| June 06 , 2008 09:21 BJT

Honda Motor suspended production at a major joint venture facility in the southern Chinese city of Guangzhou after it was flooded by heavy rain and is unlikely to resume output this week, company executives said on Thursday.

The plant, with annual capacity of 240,000 units, was shut late on Monday and the Japanese auto maker is still evaluating damage to its the assembly line, one of the executives told Reuters.

"We are working hard to resume production as soon as possible, but we are not likely to make it this week," said the executive, who asked not to be identified.

The plant, jointly run with Guangzhou Automobile Group Co, makes the Odyssey, Fit and other models.

Economic losses as a result of the storm and production suspension are unclear at this stage, another executive said.

Another Honda plant in the city, with annual capacity of 120,000 units, was not affected by the storm, the executive said.

The number-two Japanese automaker also runs a manufacturing venture with Dongfeng Motor Group Co in central China.

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