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The chip shortage has hit output at multiple US and Canadian Honda plants, and at rivals’ factories |
Honda Motor last night said supply chain issues would halt production at most of its US and Canadian vehicle plants for a week.
According to a Reuters report, the automaker added the issue would result in some production cuts next week at all US and Canadian plants, citing “the impact from COVID-19, congestion at various ports, the microchip shortage and severe winter weather over the past several weeks”.
“In some way, all of our auto plants in the US and Canada will be impacted,” Honda told the news agency.
Some US. and Canadian plants were expected to have smaller production cuts next week but a Honda spokesman told Reuters “the timing and length of production adjustments could change”.
The company declined to detail the number of vehicles impacted but said “purchasing and production teams are working to limit the impact of this situation”.
The company added when production was suspended Honda workers “will continue to have the opportunity to work at the impacted plants”. Honda workers were notified of the production cuts on Monday (15 March).
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, told Reuters Honda typically produces about 30,000 vehicles a week in the US and Canada.
Reuters said the production issues were hitting Honda plants in Ontario, Ohio, Alabama, and Indiana. Honda said its Mexico operations had not announced any production cuts.
The chip shortage, which has hit most of the global automakers, stemmed from a confluence of factors as carmakers, which shut plants for two months during the COVID-19 pandemic last year, competed with the sprawling consumer electronics industry for chip supplies.
General Motors had cut production at many plants and warned it could lose up to US$2bn from this year’s profits.
Ford previously said the shortage could hurt 2021 profit by up to $2.5bn and said it had curtailed production of its flagship F-150 pickup, Reuters added.