Business

Honda hit by second strike in China

Honda cars for sale
Image caption Honda is seeing a big rise in Chinese sales

Honda has had to halt production at two of its four car assembly factories in China after another strike by workers at one of its Chinese parts facilities.

The Japanese firm said work had stopped on Wednesday because of industrial action at exhaust-maker Foshan Fengfu Autoparts, which it part-owns.

It is the second time in two weeks that its Chinese production has been hit by a walkout over pay at a local supplier.

The earlier strike at a gearbox plant closed all four of its China factories.

Growing pay disputes

Honda said the walkout at the Foshan Fengfu facility, which is 70%-owned by its Chinese subsidiary Yutaka Giken, started on Monday.

Negotiations to resolve the dispute are now continuing.

The two strikes to hit Honda come as labour disputes over pay are growing in number in China.

Honda runs three of its four car assembly factories in China as joint ventures with Chinese carmakers to supply the domestic market.

It has two factories in association with Guangzhou Automobile and one with Dongfeng Motor Corporation.

Honda's fourth Chinese factory makes its Jazz small car model solely for export.

The Japanese firm currently makes 650,000 cars a year in China, and intends to increase this to 830,000, as the Chinese car market continues to grow strongly.

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