Supply chain problems hit production at Honda’s Swindon plant

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Honda is to cut production at its Swindon plant to 50 per cent of the planned weekly level from 11th April, owing to supply chain problems caused by the earthquake in Japan.

Ken Keir, executive vice president, Honda Motor Europe said: “We’ve taken the decision to reduce our production volumes at HUM as it enables us to continue with our manufacturing activities, thus minimising the impact on Honda customers, dealers and Associates. We appreciate everyone’s understanding, customers and dealers, during these challenging times.”

The company suspended production of both cars and components in Japan following the earthquake and tsunami on 11th March. Production and shipment of components started again on 4th April and car production is due to resume on 11th April.

However, the company said that as the parts supply situation remains unstable; production of component parts and vehicles at Honda plants will resume at approximately 50 per cent of the original production plan.

Relatively few components for the cars produced at Swindon come from Japan – the vast majority are sourced in Europe. However, the interruption to supply of parts from Japan will affect production.

The company said: “By taking this action, HUM will be able to continue production by using HUM’s flexible working policy; pay is maintained for all associates. Once full production is resumed the reduced volume production will be quickly recovered using the banked hours.”

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