Amid a significant drop in sales, Honda is laying off workers and making substantial production cuts in China. Dongfeng Honda is reducing its workforce by over 2,000 employees, primarily production line workers. Dongfeng Honda’s annual production capacity is 720,000 vehicles. Starting August 26, its three factories in Wuhan, Hubei have been shut down for two weeks to cut inventory. In August, Dongfeng Honda’s sales fell by 60% YoY to 24,000 vehicles, with cumulative sales in the first eight months totaling 276,000 vehicles, a 20% YoY decrease.