Honda Motor said on Monday its production in China fell 15.7% in May, the first year-on-year fall in 12 months as a string of strikes at suppliers forced it to suspend work at its local plants.
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Production stopped on and off at its four car assembly factories in China, initially hit by a prolonged strike at a subsidiary’s transmissions plant.
That dispute, which ended in an agreement that granted workers higher wages and more benefits, has had a knock-on effect, leading to at least three more strikes at a Honda supplier.
Honda said it built 37,367 cars last month, when production was disrupted during the last week. Honda has had to suspend production over several days also in June, Reuters reported.
Rivals Toyota Motor and Nissan Motor in contrast increased Chinese production by 17.9% and 34.6%, respectively, in May though Toyota has since been hit by supplier strikes this month.
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By GlobalData
Analysts have said they see limited financial impact from the production stoppages, with the automakers planning to make up for lost production by working on holidays and overtime.
