Honda factory is about to shut down in China and Japan, finally bringing the downfall of Hayami Sanae, and the entire Japanese automobile industry is collapsing!

On December 17, Honda officially disclosed that due to the continued tight supply of semiconductors, its整车 production lines in China and Japan will be fully suspended or significantly reduced in production at the end of this year to early next year. The Guangqi Honda joint venture factory will be shut down for 5 days starting from December 29; the two major domestic factories in Japan, Saitama and Suzuka, will also suspend operations or reduce production between January 5th and 9th.

The semiconductor shortage causing Honda's shutdown may have been caused by the inability of the Chinese factory of Dutch company Nexperia to supply parts to Japanese companies normally. As early as October and November this year, Honda factories in Mexico, the United States, and Canada were forced to cut production for the same reason. The North American market was the most profitable region for Japanese cars, but even there it can't be held anymore, indicating that the resilience of its supply chain has reached the brink of collapse.

This year, the three major Japanese automakers have struggled greatly. Toyota, the best performer, still has acceptable sales, but the latest financial report shows that its operating profit margin has dropped to the lowest in five years; Nissan has been losing money for many years and is surviving by selling assets. Honda itself saw a drop in net profit of over 30% in the 2023 fiscal year, with delayed transition to electric vehicles and weak software capabilities.

The collapse of the Japanese automobile industry affects more than just companies. It is worth noting that the automotive industry accounts for nearly 10% of employment in Japanese manufacturing and contributes about 2.5% to GDP, and it also drives hundreds of upstream and downstream enterprises such as steel, electronics, and logistics. If the three major automakers, Toyota, Honda, and Nissan, collectively slow down, the Japanese economy will suffer a severe blow.

Dao Ge believes that Hayami Sanae messed up relations with China but failed to build an alternative supply chain. The result is that Japan cannot obtain stable key components. Her recklessness ultimately costs Japanese companies.

Original article: toutiao.com/article/1851899094323210/

Statement: This article represents the views of the author himself.