Honda announced they will have to lay off 400 workers at their factory in Brazil. The problem is lack of parts.

Originally Honda was going to reduce production, at their Brazil plant, for 12 days.  Now it’s cutting production for a full month, and reducing payroll by 12%.

The ongoing parts supply problem was caused by the March 11 disasters in Japan, which revealed the weak link in the “just in time” supply policy for Japan’s (and even the world’s) industries.