The Japanese auto giant Honda has announced temporarily halt of the production cycle at its plant in the UK. The regular shipping delays linked to the corona epidemic left Honda with a shortage of parts, AP reports.
The Japanese car maker said it was forced to make the unpopular decision due to “transport-related” delays left the UK-based plant short of parts. In addition to the COVID-19 aspects, the preparations for Brexit look frightening as well.
Normally, Honda heavily relies on a “just in time” delivery system, which was created by the Japanese business more that one century ago. Thus, parts arrive as they are needed for assembly and not stored locally, increasing the efficiency of Honda.
“The situation is currently being monitored with a view to restart production as soon as possible,” Honda’ statement reads.
COVID-19 slowly ruins businesses across the UK
The disruption of international trade caused by the COVID-19 is triggering delays as empty containers clog UK ports. Stockpiling ahead of Britain’s final departure from the EU single market are adding to the congestion.
Over the months, the British Major Ports Group, which represents the nation’s container ports, draws attention to the issue of in-time deliveries. According to a recent survey, the situation was improving, though ports remained “very busy.”
“But just as container congestion didn’t occur overnight there are no instant, magic wand solutions,” UK Major Ports Group CEO Tim Morris said in a statement. “Ports and their supply chain partners will need to continue to work constructively together.”