Japanese automakers hit by China’s zero-Covid lockdowns

Japanese automakers hit by China’s zero-Covid lockdowns

Toyota, Honda, and others are forced to make adjustments or suspend operations.

Full operations were supposed to restart in mid-November but were postponed. (AP pic)
TOKYO:
Ongoing Covid lockdowns in China are forcing Japanese car and truck manufacturers to drastically adjust their production schemes in the country, in some cases forcing Honda and Toyota to completely suspend operations at their factories there.

The country’s zero-Covid policy of initiating massive lockdowns to stop outbreaks is keeping workers in their homes, making normal production virtually impossible. Prolonged lockdowns could also have an effect on sales for the companies.

Honda was forced to halt production at a joint venture facility with Chinese automaker Dongfeng in Wuhan on Monday but said that operations would resume on Wednesday. The Wuhan plant produces the CR-V SUV and the Civic sedan.

Another Honda auto plant in Guangzhou, a joint venture with Guangzhou Automobile Group, has adjusted production but is still operational. The joint venture’s engine factory in Chongqing will be largely shut down until Dec 2. Operations there were scheduled to resume in mid-November but were postponed.

Toyota is also adjusting production at some plants due to Covid lockdowns, though the company said it is not disclosing details about the factories affected or the exact impact on production.

The disruption is also hitting producers of trucks and other vehicles. Isuzu Motors suspended operations at a truck and engine plant in Chongqing on Nov 21 and said that it does not know when production will resume.

Yamaha Motor also shut down a large motorcycle factory in the city from Nov 11 to Nov. 20. Partial operations resumed on Nov 21, but a schedule to resume full operations has not yet been set.

Stay current - Follow FMT on WhatsApp, Google news and Telegram

Subscribe to our newsletter and get news delivered to your mailbox.