Domagoj
Honda Motor Co. (NYSE:HMC) may look outside of China when it builds a new supply chain, according to reports in Japanese media.
The automaker is considering a plan to reduce its dependence on China due to the COVID lockdowns that have slowed or stopped the supply chain over the last several years.
Honda (HMC) also has some concerns on the ratcheting up of tensions between the United States and China.
An exec with Honda did not confirm the report.
"The review of the supply chain from China and risk hedging are elements that need to be considered, but it is not quite the same as the objective of decoupling," noted the spokesperson.
Japanese automaker Mazda Motor Corporation (OTCPK:MZDAY) is also addressing the China supply chain issue. The company said earlier in the month that it would ask its parts suppliers to increase stockpiles in Japan and produce components outside China.
Shares of Honda Motor (HMC) rose 2.52% in premarket trading on Tuesday to $27.30.