TOKYO -- Honda will pay a portion of the higher electricity costs incurred by its suppliers, lifting their financial burden so that they have room to raise wages as it aims to create a sustainable supply chain.
Nikkei has learned that Honda has informed some of its primary suppliers, from whom it procures parts directly, that it will bear the cost of year-on-year electricity increases incurred in Japan for products they had manufactured for the Tokyo-based automobile giant in the 12 months to end-March. The suppliers had previously asked Honda for financial help in the face of rising prices.
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