Honda UK to run at Half Capacity After Japanese Disaster

Apr 8 2011

In worrying news for those in the auto loan industry, Honda's Swindon car factory has announced that it will from now on run at only 50% of normal capacity after the Japanese earthquake and tsunami created severe parts shortages.

Honda is the first car manufacturer in the United Kingdom to be hit this badly by the Japanese disaster.  The company gets most of its parts from Europe, but a few vital components are sourced in Japan.  To deal with Japanese supply problems the company will start operating at half its normal capacity from next Monday.

Honda hopes that everything will be back to normal within two months.  In the interim staff members will continue to be paid their full salaries.  Auto loan buyers will be glad to hear that the car maker hopes to make up the lost time later in the year.

Executive Vice-president of Honda Europe Ken Keir had the following to say "We've decided to reduce our production volumes as it enables us to continue with our manufacturing activities."

Honda in Japan has been equally hard hit.  The company's car factories there are also operating at 50% of normal capacity.  They were, however, able to get their motorbike, engine and generator plants in production again.  In the United States production plants are also running at less than full capacity.

The Japanese disaster hit rival Toyota even harder.  Most of the company's production facilities in Japan are still closed altogether.  Currently it only has two factories operating, with a possible third one coming online in a week.

How the situation will affect ordinary auto loan buyers is not clear at present.  If the shortage of new cars continues for much longer, car prices are bound to start climbing soon.

Author - Louise Hutchinson
 

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