Honda said its assembly lines in China resumed full operations today after production was halted over a week ago by a strike at Honda Auto Parts Manufacturing in Foshan.
The shortage of components from the plant brought the company’s joint venture car factories, Guangqi Honda Automobile and Dongfeng Honda Automobile, to a halt.
Go deeper with GlobalData
Zhu Linjie, a Beijing-based Honda spokesman, told AFP that full vehicle assembly operations had resumed following the return to work at the components plant on Wednesday. Honda offered a 24% pay rise to workers to end the strike.
The company said it was ready to give a CNY366 (US$54) raise to the 1,900 workers at the plant, taking monthly salaries including allowances to CNY1,910 (US$280).
Workers at the plant were demanding a rise CNY800 (US$117) a month as well as better promotion opportunities and have threatened further industrial action. Honda has acknowledged that some workers remain dissatisfied with the current pay rise offer.
Honda has a production capacity of 650,000 vehicles a year in China. The Foshan auto parts unit in southern Guangdong province – China’s main factory belt – makes transmission and engine parts.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
