Honda Motor said on Friday it settled a labour dispute at a Chinese car parts plant after almost three weeks of on-and-off disruption, allowing it to build cars again in the world's fastest-growing market.
Workers at the transmissions factory in Foshan, south China, had met with managers on Friday after putting a strike on hold to see whether the company would give in to additional concessions such as an annual salary increase of at least 15 percent.
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The workers had threatened to go back on strike if management refused their demands.
"We've reached a conclusion, and production at the parts plant and car factories will go back to normal," Honda spokeswoman Akemi Ando said.
Japan's No.2 automaker said the last remaining holdouts at the 1,900-strong parts factory agreed to the company's original offer of a 366 yuan (S$76) hike in monthly starting salary for regular workers, and "other concessions" after compromises made on both sides.
It did not disclose the nature of the other concessions.
The settlement allows Honda to go back to building the Accord, Civic and other popular cars at its four assembly plants in China, whose market accounted for 17 percent of its global car sales last year.
Honda had restarted assembly at all four plants on Friday as the supply of transmissions flowed for the first time in more than a week as workers agreed to return until management made a decision on their list of demands on Friday.
Honda said it expected to recoup the thousands of units of production losses through additional shifts in future.
