Lately, carmakers have struggled. Most automobile stocks have fallen this year, and they're having trouble returning to pre-COVID levels.
Honda (NYSE: HMC) just said it's decreasing manufacturing in Japan for some of its most popular cars
The cut comes as Honda suffers supply chain challenges and a chip scarcity, and it should alert other manufacturers.
Reuters reports that Honda is slashing car manufacturing by much to 40% in Saitama and 20% in Suzuka. The CR-V, Jazz/Fit, Honda e, and HR-V will be affected.
Honda blamed supply chain concerns, COVID logistics issues, and a chip scarcity for their cuts.
Honda's recent production slowdown is likely a sign that its peers will also cut back.