Honda to extend production suspension at some North American plants

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 Reuters

March 23, 2021

Honda Motor Co said on Tuesday it will extend production suspensions at some North American plants into the week of March 29 due to various supply chain issues.

Last week, the Japanese automaker said a variety of issues would force it to halt production at a majority of North American plants for the entire week of March 22 and impact production at the remainder of its North American plants.

Honda cited “impact from COVID-19, congestion at various ports, the microchip shortage and severe winter weather” for the production cuts.

The global shortage of semiconductor chips is hitting production around the world.

Last week, Toyota Motor Corp said it was cutting production at four plants in Kentucky, West Virginia and Mexico, citing “a shortage of petrochemicals” and “recent severe weather conditions” affecting production.

Stellantis warned Saturday its highly profitable pickup trucks were hit by the issue, while Ford Motor Co said it would cut more U.S. production.

Stellantis, the world’s fourth-largest automaker, said it will build and hold for final assembly its Ram 1500 Classic trucks at its Warren, Michigan, and Saltillo, Mexico, assembly plants. When chips become available, the vehicles will be completed and shipped to dealers.

The chip shortage, which has hit automakers globally, stems from a confluence of factors. Carmakers shut North American plants for two months last year during the COVID-19 pandemic and canceled chip orders. Meanwhile, demand for chips surged from the consumer electronics industry as people worked from home and played video games. Now carmakers must compete for chips.