Honda China loses $35 mln daily from parts factory strike

13:12, May 28, 2010      

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Honda China yesterday confirmed that all of its four assembling plants have halted production as a result of the workers' strike for higher wages in its parts factory in Guangdong.

It is estimated that Honda China will suffer a daily loss of around 240 million yuan (35 million U.S. dollars) due to the strike and the shutdown of its assembling factories.

Currently, the work stoppage in the Honda Auto Parts Manufacturing Company is continuing, and Honda has not offered any effective solution.

Liu Hong, vice general manager of Dongfeng Honda Automobile Co., Ltd., disclosed that the company has adjusted its production schedule.

"The factory will reopen soon," he said.

Based on the sales statistics of Honda China, analysts estimated that the four factories have a daily production capacity of around 2,000 cars.

As to the joint ventures' call to restart production, Zhu said that he was not aware whether Honda had started the emergency action mechanism for auto parts supply.

Despite the shutdown, sales of Honda have not been affected in China. An official from Guangqi Honda's PR department said that the company's inventory can guarantee market demand.

Dealers from Guangzhou and Shanghai confirmed that the sales and marketing are still smooth.

By People's Daily Online

(Editor:祁澍文)

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