Clark BS 12/03/2023
Guangzhou Honda issued a layoff notice to its employees at the end of November.About 7%of the 13000 employees were laid off.Guangqi Honda's total sales in the first 10 months of 2023 were about 490000 vehicles,a year-on-year decrease of 18.5%.
In response,the joint venture will reduce the number of workers employed by the Guangzhou assembly plant through job referrals.According to local regulations,GAC Honda will compensate contract workers who resign early.
china and the United States are tied as one of Honda's largest markets.But China's goal is to sell all new cars as electric vehicles by 2035.
Honda's product lineup in China mainly includes gasoline powered vehicles and plug-in hybrid vehicles,with few electric vehicles.Chinese electric vehicle giant BYD and other New Energy Vehicle manufacturers have put pressure on Honda.
Honda's predicament is similar to that of other japanese counterparts conducting business in China.In July of this year,it was reported that TOYOTA had laid off about 1000 employees in its joint venture,GAC Toyota.Another Chinese joint venture,FAW Toyota,will partially suspend production starting from Friday.
Toyota stated that the discontinuation of its joint venture with FAW in Tianjin,China is planned,and Toyota is adjusting production based on changes in the composition of its models."The reason for stopping the production line is to optimize the production system considering aging and changes in the composition of vehicle types."
In late October this year,Mitsubishi Motors announced that it would withdraw from car production in China due to a sharp decline in sales.
