Honda has seriously cut down on production 06/02/2011
Following the devastating earthquake and tsunami in Japan, automakers have been forced to make significant production cuts in order to make up for a parts shortage.
Reuters is reporting that production at Toyota Motor Corporation and Honda Motor Company was halved during the month of April because of the massive shortage of various parts. However, while this was a setback, the news provider reports that the companies are more likely to recover faster than previously perceived.
"Some parts suppliers say they are resuming full production in June in time for automakers' summer operations. And the widely anticipated disruption in power supply during summer is not likely to have a big impact on production," Yoshihiko Tabei, chief analyst at Kazaka Securities, told the news provider.
According to the Associated Foreign Press, Honda's production dropped by 52.9 percent, while Toyota's decreased by 48.1 percent. Additionally, because Honda had to suspend all of the production at its Japanese plants, domestic sales were down by 46.3 percent and exports decreased 76.2 percent.