Honda’s Japan output heads back on track

Honda’s car factories in Japan will return to normal levels of production next month, after reducing their output in November because of a microchip shortage and supply disruptions from Covid-19 lockdowns worldwide.

The Japanese marque has been working at about 90 per cent capacity this month but says its two domestic production sites will return to normal capacity in the first half of December.

It follows a similar move by Toyota, which hopes to start making up for lost production this year when its plants return to normal next month for the first time since May. 

Honda also recently cut its full-year profit forecast for the second time, citing production delays and rising materials costs, reports Reuters.

It predicts an operating profit of ¥660 billion ($8.2b) for the year to March 31, which is 15 per cent lower than a forecast the company made in August.