Honda Output Hit By Strikes;

Honda Motor Co. announced that they are experiencing lower production due to the shutdown of Chinese factories that have been involved in a recent strike. Production fell 15.7 percent in May, and may continue to stay at below normal levels until an agreement is reached between Honda and the workers. Competitors like Ford and Buick whose models can be found at a Cincinnati Ford Dealer or a Birmingham Buick GMC dealer have been unaffected by the strikes.

Honda has four manufacturing plants in China and there have been strikes at different plants throughout the past few weeks. Volkswagen whose cars can be purchased at a VW dealer was not affected by any of the strikes. The strikes were triggered by one strike at a transmissions plant that resulted in Honda negotiating an agreement with workers. The agreement resulted in higher wages for workers along with more benefits. As a result, several other workers groups attempted to get similar results and hosted strikes of their own.

Pressures in China have been mounting due to low wages, rough management at some factories, long hours, and poor working conditions. Workers have expressed discontent as living costs have been increasing in China while wages have remained stable or decreased.

Toyota and Nissan, who are both rival Japanese automakers, increased their productions for May. Toyota was also hit by strikes in China but the strikes did not decrease production for the company. There is not anticipated to be any economic impact to Honda from the lowered production.

Once an agreement is reached, production levels will likely return back to normal. In the mean time, Honda may increased production at other factories in order to compensate for the lessened production if necessary. Honda built a total of 37,367 cars in May. The company also stopped production during a few days in June.