Honda's China Joint Venture Lays Off 900 Workers

Due to a rapid shift towards the electric vehicle market, Honda recently announced the layoff of approximately 900 contract workers at its Chinese joint venture, GAC Honda Automobile Co. The layoffs affect approximately 7 per cent of the joint venture's 13,000 employees. 

Honda stated that production is decreasing, resulting in contract terminations, but did not specify which models' production was reduced. Guangqi Honda will compensate contract workers who leave early, according to regulations. This is Honda's first layoff since it began producing cars with China's Guangzhou Automobile Group Co. (GAC) in 1998.

GAC Honda's sales for the first ten months of 2023 totaled around 490,000 units, representing an 18.5 per cent decrease year on year.