Feb 07 (Nikkei) - Honda Motor is getting ready to switch off its engines. As part of a radical restructuring leading to an all-electric future, Honda has cut its domestic auto production capacity to slightly over 800,000 vehicles a year, down by around 40% from its 2002 peak.
Most of the retrenchment has come by halting production of finished cars at its plant in Sayama, Saitama Prefecture, northwest of Tokyo, at the end of last year. Honda also announced other cost-cutting steps last year, including adopting a new vehicle development system and pulling the plug on its Formula One racing program.
The company is retooling its manufacturing operations in line with its vision for the future. It has announced that it its entire lineup of cars will be electric by 2040.
On Dec. 27 last year, a "line-off ceremony" was held at the Sayama plant to mark the end to production of finished cars. "Like you, I will miss it all," President Toshihiro Mibe told those present.
Only a few executives attended the ceremony due to COVID-19 restrictions. But it was livestreamed to allow workers in different parts of the plant to watch the proceedings. Mibu showed up in an old Honda and spoke of being mentored by exacting senior employees during his time at the plant, where he worked as a young engineer developing engines. "We will continue making automobiles that meet the needs of consumers at home and abroad," he said.
