Hence, Honda closed down its 2 plants in Guangzhou and Wuhan and currently talks are underway. The manufacturing plant produces the transmission parts for various Honda models which include the Accord, Odyssey, Fit and the City and the factory which started in 2007 is supposed to raise the production by 28% to 830,000 a year from 650,000 currently. There are also plans to roll out 2 new models as well.

The shutting down of the plants would surely delay the production of Honda cars as 17% of Honda’s revenue globally is contributed by China alone. It is then important that Honda solve this problem as soon as possible so that they can get on with their business. At the time of employee power and bargaining power, a readjustment of wages would be very possible.

 

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