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March 11, 2020

Honda and Nissan resume manufacturing in Hubei

Honda has said that limited operations have resumed at its vehicle production site in Wuhan, according to reports.

By Sam Duke

Honda has said that limited operations have resumed at its vehicle production site in Wuhan, according to reports.

The restart was delayed from last week, but comes as the public health crisis in Hubei appears to be levelling off, with people starting to return to work after the authorities lifted some restrictions.

According to Reuters, Honda said that it would gradually resume vehicle production at the plant, which produces a number of models including the CR-V.

Nissan which also operates a vehicle manufacturing plant in Hubei province, plans to partially resume production at the site along with another plant in Zhengzhou, Henan province, sometime this week, the company told Reuters.

Nissan has also reduced output at some of its plants in Japan due to issues with procuring components from Chinese factories.

The company faces serious financial challenges from the impact of the coronavirus crisis on its China sales and on its net cash-flow. If its cash position deteriorates sharply, that could have knock-on effects elsewhere for its operational health and constrain its funds for much-needed investment.

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