Honda Motor Co. is reducing and temporarily suspending production at some of its North American plants due to a shortage of semiconductors. The chip deficit is already affecting the automotive industry in the US, Canada, and Mexico. This is stated in a Bloomberg article, writes UNN.
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According to the company, production at some plants will be adjusted this week, but the duration of the shutdown has not yet been determined.
The reason was a supply crisis after the Dutch government took control of the Chinese chip manufacturer Nexperia, and Beijing, in response, blocked the export of semiconductors abroad. It was Nexperia that previously warned Japanese customers, including Honda, that it could not guarantee stable supplies.
Due to the chip shortage, the plant in Canada, which produces Civic and CR-V models, has halved production, according to union representatives of the supplier. Another plant in Mexico, which manufactures HR-V, temporarily stopped on Tuesday, Nikkei agency reports.
The situation with semiconductors could lead to a wider chain effect in the automotive industry, experts warn.