Honda says no timetable for restarting China output
Honda Motor Co is still trying to resolve a labor dispute at a China parts plant that led to the closure of all four of its car plants in the country and has no timetable for resuming production, a company spokesman said on Friday.
Japan's No.2 automaker said production at its three Chinese vehicle plants supplying the domestic market would be halted at least until Monday.
A fourth factory, which normally builds 120 Jazz subcompacts a day for export, will work at a reduced pace of 50 units on May 31, using parts from inventory, a spokeswoman in Tokyo said.
She added that negotiations with the workforce were still going on, and that there was no decision yet on when production could restart as management continued to talk to workers about their demands for pay rises and more benefits.
Honda, which competes with Toyota Motor, Nissan Motor and others in China, operates three car ventures with Dongfeng Motor Group Co and Guangzhou Automobile.
Overseas firms have recently been hit by a string of high-profile labor controversies in China, a key global manufacturing center, as migrant workers, many from the vast countryside, have started to ask for better pay and conditions.
Taiwan's Hon Hai Precision Industry plans to raise workers' salaries by about 20 percent at its Foxconn unit in China, as it struggles to stop a spate of worker suicides and quell rising public anger. Foxconn makes Apple Inc's iPhone.
Honda shares ended up 0.1 percent on Friday, underperforming a 1.0 percent rise in Tokyo's transport sector subindex .ITEQP.T. (Reporting by Fang Yan and Jason Subler in SHANGHAI, Chang-Ran Kim in TOKYO; Editing by Jonathan Hopfner)