#logistics

Honda is reportedly considering tweaking its global supply chain to create a firm distinction between the Chinese and global markets. While the whole world has seen production stymied by restrictive protocols introduced in response to COVID-19, the Chinese Communist Party has retained a zero-tolerance policy that appears to have totally upended its economy and resulted in continued factory stalls. That's bad news for several Japanese automakers that have stepped up their reliance on Chinese production.

Last year, roughly 40 percent of Honda's automotive production (which includes part sourcing) came through China. This year, the company is allegedly wondering how to tear itself away from the market without losing the ability to sell cars to its massive population.

Following rumors that Audi’s E-Tron would have to be delayed due to issues with battery supplier LG Chem and some unforeseen “software development” problems, Volkswagen Group’s plan to build 330,000 electric vehicles per year in Zwickau, Germany, by 2021 appeared to possess a plot hole the size of the Grand Canyon.

The EV problem is not unique to Volkswagen. Other manufacturers hoping to build electric cars have also been struggling with factory retooling, high development costs, and in-demand battery suppliers that are more than willing to change their prices. However VW claims to have solved some of these issues, at least for a while, citing new investments in China and multiple partnerships with battery concerns.