NURSINGTON, England — Honda has announced a number of measures to cut its costs in North Korea as the country’s economy is plunged into a deepening economic crisis.
In an interview with CNNMoney, Honda President Takahiro Honda said the company has decided to cut production of the Civic compact car and some other small cars in the country.
He said it will cut some production lines and make more changes to production facilities in North Korean factories, but it won’t affect sales in North America and Europe.
“We will focus on our domestic operations,” he said.
Honda is in talks with the North Korean government to improve its manufacturing and supply chains.
It has also said it is considering selling off some of its U.S. and European manufacturing assets.
The company has been forced to reduce its production of new models to keep up with demand in North American and European markets.
Honda says it is doing this because of a growing number of car parts that were imported into the country as a result of sanctions imposed by the U.N. Security Council.
Some of the parts, such as seats and brakes, are also made in North Dakota.
North Korea has accused the U of trying to pressure it to hand over information about its nuclear program and its weapons program, and to pressure its economy to stop growing.