Honda Atlas Temporarily Halts Operations Once Again

Jawad

08 Nov 2023

272

Honda Atlas Temporarily Halts Operations Once Again

Honda Atlas Extends Manufacturing Plant Shutdown

Honda Atlas , a subsidiary of Honda Motor Co., Ltd., Japan, has recently made an announcement regarding another temporary shutdown of its manufacturing plant due to ongoing supply chain disruptions. The decision, communicated through a notice to the Pakistan Stock Exchange (PSX) on Tuesday, extends the closure period from November 08 to November 09, 2023.

Persistent Supply Chain Challenges Impact Production

Earlier, the company had disclosed a production halt on November 1, indicating that the Honda plant would remain dormant until November 7. These closures are a direct result of significant disruptions in the supply chain, which have notably affected inventory levels and the availability of essential parts required for production.

Company's Response to the Situation

In response to these supply chain challenges, Honda Atlas Cars has expressed its inability to sustain production. The company has stressed the severity of the situation, necessitating temporary plant closures until the supply chain returns to a stable state. Any changes to this plan will be promptly communicated to stakeholders.

Recurring Production Disruptions

It's important to note that this isn't the first time Honda Atlas Cars has faced production disruptions this year. Earlier, the company had halted production from March 09 to May 15, citing a combination of deteriorating economic conditions in the country and government restrictions related to the issuance of Letters of Credit (LCs).

Financial Impact on Honda Atlas

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 the Rs658.2 million recorded in the same period last year.

Suzuki's Shutdown Due to Inventory Shortage

Honda Atlas is not the only player facing the repercussions of short inventory; Pakistan Suzuki is experiencing a similar situation. Pakistan Suzuki Motor Company (PSMC) has also extended its plant shutdown, suspending production operations from November 1 to November 7, 2023.

Ongoing Challenges Affecting Production Operations

Pak Suzuki's decision to extend the shutdown is attributed to the persistent shortage of inventory, creating a ripple effect across its production operations. Despite the challenges faced in the automobile plant, Pak Suzuki has chosen to resume production at its motorcycle plant.

We'd like to hear your thoughts on the ongoing shutdowns in the automotive industry. Please share your comments and opinions in the section below.

Honda Atlas Shutdown News Supply Chain Disruptions Automotive Industry Manufacturing Plant Closure Production Halt Honda Motor Co Pakistan Stock Exchange Inventory Shortage Economic Impact

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