By Megumi Fujikawa
TOKYO--Honda Motor plans to continue suspending some production at its Chinese joint venture with Dongfeng Motor Group following its decision to reduce headcount in the world's largest car market as part of a broader strategy shift.
The Japanese automaker is set to resume production at two of Dongfeng Honda's three plants in China on Thursday after a suspension on Aug. 26 to reduce inventory, a Honda spokeswoman said.
Production at the other plant will remain halted until Sept. 22, as the company cut jobs by offering voluntary retirement packages in late August, the spokeswoman said.
Chinese media reported that the job cuts would affect about 2,000 workers. Honda declined to disclose the size of the reduction.
The moves came as sales of Honda cars, which mostly run on gasoline or hybrid engines, are struggling in China as consumers there shift toward electric vehicles.
In a statement on social media on Tuesday, Dongfeng Honda called the layoffs a strategic adjustment to ensure its sustainable operation and pivot to EVs.
The three Chinese factories have a combined annual capacity of 720,000 vehicles.
Shares in Honda ended 3.0% lower on Wednesday.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
(END) Dow Jones Newswires
September 11, 2024 05:11 ET (09:11 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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