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The Associated Press May 28, 2010, 7:52AM ET

Honda suspends production in China due to strike

Honda Motor Co. said Friday that production at three of its four plants in China remains suspended because of a lack of transmissions and engine parts caused by a strike at a parts maker, but will resume partially next week at the fourth.

Workers demanding better wages went on strike at Honda Auto Parts Manufacturing Co. in the southern coastal province of Guangdong on May 17. The strike forced Honda to shut production at its four assembly plants earlier this week.

Honda declined to give details of the negotiations with workers Friday.

The strike has affected two factories at the Guangqi Honda Automobile Co. joint venture in the southern city of Guangzhou, and two other Honda plants -- Dongfeng Honda and Honda Automobile China.

Production at Guangqi Honda, which makes the Accord sedan and Odyssey minivan, will remain suspended Monday, Honda said. Dongfeng Honda in central Hubei province, which produces the Civic and CRV SUV, will also remain shut.

Guangzhou-based Honda Automobile China, which has a daily capacity of 120 Jazz models, is expected to partially resume operations and produce about 50 vehicles on Monday, Honda said.

The parts maker, which makes transmissions and engine parts, employs 1,900 people.

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