Honda Keeps Japan Plants at 50% Capacity until End of June

Honda announced today in Tokyo that it is keeping auto production at about 50% of planned capacity from now until the end of June. The severely reduced output includes both final assembly operations for finished vehicles and component parts plants that make pieces for overseas manufacturing operations. Honda doesn’t think that full production will return until this fall.

Auto exports are crucial to the success of the Japanese economy, which is now facing a prolonged period of reduced output because of energy and parts shortages. 

The latest setback for the Japanese auto industry, the result of the March earthquake and tsunami, follows the announcement late last week that Toyota will not be able to resume full production until the end of the year. Toyota, Japan’s largest automaker, is currently at 50% capacity in Japan and 40% or less in its overseas operations due to parts shortages.

Honda said a company-wide effort is underway to normalize production as soon as possible. “We deeply regret any inconvenience experienced by our customers and ask for their understanding during these challenging times,” Honda said in a statement.