Honda will close its Japanese Sayama factory
- Honda has announced that it will stop producing cars at one of its plants in Japan by 2022, reducing its capacity by nearly 25% in its domestic market, i.e. 300,000 units out of 1,200,000.
- The manufacturer believes that the Japanese market will remain sluggish over the next few years and that it can meet local demand with capacity equivalent to 900,000 units per year instead of 1,200,000 units, as they produced no more than 800,000 vehicles in the country in 2016, and will not produce more in 2017.
- Analyzing Honda’s position, we can observe that:
1. Its production in Japan continues to decline while that in China and the USA continues to increase, and is now well beyond Japan production.
2. The Japanese Sayama plant (the historic Honda plant) only produces 12.5% of Honda's production in Japan (compared to 25% in 2010 and 40% in 2005). Indeed, the Sayama factory has been relieved of models that have established abroad or have not found their place on the market.
- Therefore, this plant will be closed in 2022 after the latest models still produced in this plant will be transferred to other under-utilized Honda sites in Japan. The internationalization of Honda production is therefore to the detriment of Japan.
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