Chinese Strikes: Honda Gets No Respect

Bertel Schmitt
by Bertel Schmitt

Honda is the Chinese version of Rodney Dangerfield. No respect. After a series of strikes, first at Honda’s parts suppliers, then at Honda itself, things looked liked they are calming down. Until yesterday.

On Friday, Honda-affiliated transmission-maker Atsumitec had to shut down their Chinese factory in Foshan, Guangdong Province, because workers went on strike. Honda holds 48 percent stake in the venture.

The factory supplies transmission parts to Honda’s four Chinese factories and a Nissan Motor plant, says The Nikkei [sub]

So far, the freeze has not affected those assembly lines. Honda learned from past disasters: “We hold the parts in stock,” said a Honda official. “So our Chinese production will be unaffected for now.” This could be a longer strike – until the supply runs out.


Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Stingray Stingray on Jul 17, 2010

    "So much for “Just-In-Time”", I have been thinking the same since the 1st strike, the Hitachi problem with the chips (I guess we can go on and on). But then I'll get flamed for nothing. Maybe rightfully so. What strikes me is that even in "real" countries (not the joke in which I live) such a philosophy fails.

  • Mike999 Mike999 on Jul 17, 2010

    Hmmm. You all realize this "worker strike" is really the Chinese Government ALLOWING a "worker strike". A worker strike against a foreign automaker. Has there yet been one "worker strike" against a Chinese Auto company? So, the government is using a foreign company to raise wages. Is this a message to all auto manufacturers, or just foreign manufacturers? Is this an effort by the government to use the "Keynes" Multiplier Effect to get more money into the working class and raise All of China's worker pay, or is this an effort to saddle more cost on foreign companies that are taking market-share away from local manufacturer's.

    • Mpresley Mpresley on Jul 17, 2010

      Labor unrest in China is not uncommon. A year and a half ago thousands of taxi drivers walked off the job. In fact, mass demonstrations are not uncommon--you just don't read about them much. There are those who argue that as the RMB rises to a credible exchange rate vis-a-vis the dollar, Chinese worker's purchasing power will necessarily rise. Remember, due to the peg, the only way the yuan could remain at par with the dollar was through Chinese central bank inflation. As the value of the yuan reaches a more realistic market value, it will ease labor strife. At least that is the theory. But with China, your guess is as good as mine, or anyone else.

  • Blowfish Blowfish on Jul 17, 2010

    is no easy way, if workers working at Lo Oi ( Foreign devils ) factory are allowed to strike then how can they really control the employees of local or govt own co.? People are watching and just vait for the right timing to strike.

  • Robert.Walter Robert.Walter on Jul 18, 2010

    To paraphrase Rodney from the last seconds from the video: "The auto-biz, like life, like comedy, is just one big rim-shot."

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