Honda Motor Closes Domestic Automobile Plant to Consolidate Production

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Honda Motor automobile production semiconductor shortage parts procurement 2021 pandemic restrictions global inventory management plant closing overview of production bases in Japan annual production capacity per plant Odyssey (end of production) Step WGN Clarity CR-V Freed Insight Civic Honda e N-BOX N-ONE N-WGN N-VAN (production beginning in 2022) Vezel Fit Shuttle Engines: GE, DE, HEV motors Transmissions: CVT, DCT S660 (production ending in 2022) motorcycles Gold Wing CB1300 Rebel 1100 X-ADV CBR600RR CRF450R GB350 Super Cub general-purpose products LiB-AID E500 generator Power Exporter 9000 engine valves crankshafts connecting rods transmission gears CVT pulleys 4WD parts transfer assemblies dual pump system assemblies differential assemblies transmissions AT CVT Sport Hybrid powertrain technology outboard motors BF20 BF225 Saitama Factory Sayama Automobile Plant Yorii Automobile Plant Suzuka Factory Honda Auto Body Kumamoto Factory Ogawa Plant Powertrain Unit Factory Transmission Factory Hosoe Outboard Engine Plant plant employee transfer Legend high-speed press line welding line production efficiency painting line number of plant employees SKI (Suzuka Kei Innovation) production volume of automobiles in Japan defective EPB coronavirus Recent Production / Procurement-related Trends in Japan Reorganization of Production System Production capacity reduction closure of engine parts plant procurement production reduction scale of production cuts trends of production cuts

Since January 2021, Honda Motor has reduced automobile production due to a shortage of semiconductors and a stagnation in the overseas parts procurement network caused by the pandemic. Honda's domestic automobile production decreased 14.1% year-on-year to 404,000 units in the first eight months of 2021. In an effort to ease semiconductor shortage at its factories in Japan, Honda ships surplus semiconductors from factories in countries where operations are restricted due to the pandemic to Japan, creating a global inventory management system. Meanwhile, Honda Motor will close one of its plants in Japan in fiscal year 2021 to consolidate domestic production reducing production capacity from 1.066 million units to 816,000 units.