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Honda Motor does not expect any impact on earnings for the July-September quarter from labour disputes in China.

“We plan to make up for the production loss during the July-September quarter,” chief financial officer Yoichi Hojo told Reuters, referring to the estimated 20,000 units in lost output from labour unrest in recent months. One stoppage affected the supply of gear levers from a local component JV.

He added that labour costs in China accounted for just 2% of total manufacturing costs, and therefore the double-digit increase in labour costs would have a limited impact. 

 

 

Just Auto Excellence Awards - Nominations Closed

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