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Honda to pare output in Japan, UK on demand drop

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Bloomberg Tokyo

Honda Motor Co, Japan’s second-largest carmaker, will cut production in Japan and the UK by 61,000 vehicles as demand slumps.

Honda will cut output of Accord sedans by 40,000 units at its plant in Saitama prefecture and production of Civic compacts at a factory in the UK by 21,000, the Tokyo-based carmaker said in a faxed statement on Friday.

Industrywide sales in the US, the world's largest car market, plummeted to the lowest monthly total in more than 17 years in October, prompting Honda to cut production in the country by 18,000 vehicles.

Nissan Motor Co, Japan's third- largest automaker, said last week it will reduce its domestic production by an additional 72,000 units.

 

Honda's cuts in Japan will bring the full fiscal year production total to 1.28 million units, a 1 per cent drop from a year earlier.

The UK cuts will bring Honda's European production to 175,000 units, a 29 per cent year-on-year drop.

No employees will be affected in the UK Honda will cut 270 temporary workers at its Saitama plant whose contracts expire at the end of December, the company said.

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First Published: Nov 22 2008 | 12:00 AM IST

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