Reuters: Honda to extend production suspension due to chip shortage
According to Reuters, Honda Motor Company said yesterday that it will extend production suspensions at some North American plants into the week of March 29 due to various supply chain issues.
Honda 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.
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 report concluded that 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.
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