Honda Atlas Cars Limited (HACL) is in dire difficulties because of the letter of credit (LC) issue that is consuming the whole industry.
In a new concerning development, Honda Atlas has extended the manufacturing shutdown for another 15 days. According to an official notification:
Honda Atlas production would be stopped from March 9th until March 31st. However, earlier this month, the company announced that the suspension will be extended from April 1 to April 15. According to the most recent notification, the shutdown will last from April 16 to April 30.
This means that Honda would have had a car assembly shutdown in Pakistan for about two months.
This will almost certainly have a negative impact on Honda’s revenue and sales. The company had previously experienced a significant drop in revenues in March, due primarily to low City and HR-V sales, which are often the company’s mainstays.
Furthermore, the company was unable to sell a single Civic in Pakistan, which is unusual. The most recent production slowdown means that sales will be lower next month.
