Crisis in the car market: the Japanese giant halves production

Car crisis, the difficulties within the automotive sector continue. The expense in this case is a Japanese automobile giant that has decided to block a specific production.

The crisis within the automotive sector does not seem at all to stop. This is also demonstrated by the difficulties that a giant such as Honda seems to be forced to face.

The Japanese company seems willing to cut 40% of production in its Japan. Let’s find out the reasons and consequences of this choice, which could greatly affect the society located in the Rising Sun.

Honda, history of the company combined with the general no-time of the car

Honda, and God forbid, we all know it very well. We are talking about the multinational company from Japan capable of producing highly successful cars and motorbikes for decades, as well as developing continuous research in the field of robotics. To be clear, with an annual production of over 14 million engines, it certainly is among the first builders from a global point of view.

It is listed on the Tokyo, New York and various other stock exchanges worldwide. However, even if a manufacturer of this caliber is in difficulty from the point of view of production, well, this is a very clear indication of the moment that the motoring sector is experiencing. A situation that today we will try to understand how and how much has affected and is affecting the number one oriental manufacturer in the world.

Honda, production cut in Japan: the reasons for this choice

Bad news in the house Honda; in the past few hours, the Japanese giant has announced that it will reduce car production in Japan by 40% in the first part of next month. The production cut concerns several factories of the brand in the Rising Sun. The plant located in Saitama prefecture, north of Tokyo, is certainly the most affected.

But the Suzuka plant will also cut production plans by around 30% in early September. The models that will be affected are SUVs and minivans passing through the legendary Civic. The reason for these cuts would seem to be related to delays in receiving components fundamentals such as microchips and semiconductors.

Something related to the Coronavirus pandemic. A turnaround for Honda, come to think of it, given that the company was convinced that production could return to normal at the beginning of last June. According to the Japanese, however, the situation should improve as early as the second half of September. It is certain that this problem, which has long linked the entire automotive sector, will not please the top management of the multinational.