Honda Atlas, a subsidiary of Honda Motor Co., Ltd., Japan, recently announced another temporary shutdown of its manufacturing plant in the face of prevailing ongoing supply chain disruptions. This decision, outlined in a notice to the Pakistan Stock Exchange (PSX) on Tuesday, extends the closure from November 08 to November 09, 2023.
Previously, the company disclosed a production halt on Nov 1, informing that Honda plant will remain dormant until November 7. The company attributed these closures to significant disruptions in its supply chain, primarily affecting inventory levels and parts availability necessary for production.
Company’s Statement
Honda Atlas Cars expressed its inability to sustain production due to the adverse impact of the supply chain challenges. The company emphasized the severity of the situation, prompting the need for temporary plant closures until the supply chain normalizes. Any alterations to this plan will be promptly communicated to stakeholders.
It is related to mention that this isn’t the first time Honda Atlas Cars has faced production disruptions this year. Earlier, the company halted production from March 09 to May 15, citing a combination of the country’s deteriorating economic conditions and government restrictions related to the issuance of Letters of Credit (LCs).
The toll of these disruptions on Honda Atlas Cars is evident in its recent financial results. The company’s profit-after-tax for 1QFY24 plummeted to Rs144.96 million, marking a substantial decline of nearly 78% compared to Rs658.2 million recorded in the same period last year.
Suzuki’s Shutdown
Honda Atlas is not the only player facing the repercussions of short inventory, Pakistan Suzuki is facing the same fate. PSMC has also announced an extension of its plant shutdown, with production operations suspended from November 1 to November 7, 2023.
Pak Suzuki’s decision to extend the shutdown is rooted in the ongoing shortage of inventory, creating a ripple effect across its production operations. Despite the challenges faced in the automobile plant, Pak Suzuki has opted to resume production at its motorcycle plant.
What do you think about the ongoing shutdowns. Drop your thoughts in the comments section.
Honda Toyota and Suzuki never opted to go for Manufacturing rather concentrated on Assembling of vehicles ONLY. Why ? Since inception it was conceptualised to gradually go for manufacturing and exporting vehicles. All failed. They rather made billions and trillions through black money, booking money and delivering of cars exceeding 10 months and of course supporting OWN money. These temporarily shutdowns are yet again pressurisation tactics against Govt and getting public’s support due decline in sales. Govt should ask them why didn’t they go for manufacturing and still importing CKDs etc. still they have reduced price in merely 1 lac and Upto 13 lacs on big vehicles whereas they increased price of Fortuner from 15 Million to 20 million and small vehicles from 14 lacs to 30 lacs …. Much to be commented on Auto Assemblers dirty tactics. One need to boycott SALES ……
Its more of no one is buying anymore so we do not have stock to sell any as well. So if we do not have stock to sell, lets close the plant. They skipped the no one is buying crap at this price anymore part from the official statement.