Honda Motor has been forced to halt production at its four vehicle manufacturing plants in China as a result of industrial action at one of its main component factories, in Foshan, Guangdong province.
Honda spokesperson Zhu Linjie was unable to say when production would resume, but did not expect the problem to be long-lasting. “The company is negotiating with workers in coordination with the local government,” he said.
Local media suggests workers were demanding better wages from the current average of CNY 1,500 (USD 220) per month.
Honda Motor has two main vehicle production joint ventures in mainland China, Guangqi Honda Automobile Co and Dongfeng Honda Automobile Co Ltd, each with two assembly plants.
Earlier this week Honda revealed plans to increase vehicle production capacity in China from the current 650,000 units to 830,000 by 2012 to meet rising demand.