Saturday 9 December 2023

Honda Lays Off Employees Due to Declining Sales in China


Honda reportedly carried out layoffs or layoffs in China following two other Japanese automotive companies, namely Mitsubishi and Toyota.

It is reported that Honda had to lay off 900 employees so that its business could continue to run healthily, adjusting its income and expenses.

“Production volumes have decreased, so the contract expires accordingly,” said a spokesperson, as reported by Reuters, Saturday (9/12/2023).

The employee reduction of up to 7 percent was carried out for those on contract status. In total, the number of workers in the alliance company reached 13 thousand people.

For information, both Honda, Mitsubishi and Toyota collaborate with the same local Chinese company, namely GAC (Guangzhou Automobile Corp).

In fact, according to the same source, in the middle of this year Toyota Motor Corporation, or TMC is targeting layoffs of 1,000 employees from one of their car assembly plants in the city of Guangzhou.

“The joint venture between Toyota and China’s state-owned GAC has laid off workers over the weekend,” he said.

Quoting the official website, the Toyota factory together with GAC has a production capacity of one million cars per year and employs 19 thousand people, one of the models they produce is the Toyota bZ4X.

Meanwhile, Mitsubishi Motors is not only cutting employees, but is reportedly cutting off its cooperation relationship with GAC because it is considered unproductive for competition in China which currently dominates electric vehicles.

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