Honda suspends a large part of its production in North America

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Japanese automaker Honda will halt production at its five auto assembly plants in North America for a week amid multiple spare parts supply issues, a spokesperson for the group said on Tuesday.

“All our automobile factories in the United States and Canada will be affected, most of the factories temporarily suspending their production during the week of March 22,” the spokesperson told Agence France-Presse (AFP).

Read also: The other shortage of the pandemic: the automobile lacks semiconductors

Honda later clarified that there were five factories, one in Ontario (Canada), two in Ohio (eastern United States), one in Indiana (eastern) and last in Alabama (south). However, the group did not provide an estimate of the impact on its production volumes in the region.

No temporary dismissal

“We are facing a number of supply chain issues related to the impact of Covid-19, congestion at various ports, semiconductor shortage and severe winter weather in recent weeks” , which paralyzed part of the country, including Texas, said the spokesperson.

Workers in closed factories will, however, be able to continue working, no temporary layoffs are envisaged, he said. “As this is a moving situation that requires flexibility, the timing and duration of production adjustments could change,” he warned.

Regarding the manufacturer: Honda launches car with advanced autonomous functions

Following these announcements on the Tokyo Stock Exchange, Honda shares lost 1.25% to 3,295 yen at mid-session, on a Nikkei star index close to equilibrium (+ 0.08%).

A global semiconductor shortage

The automotive sector has been particularly penalized by the global shortage of semiconductors since the start of the year. The American manufacturer General Motors has also had to temporarily close factories in North America and Latin America for this reason.

United States President Joe Biden has promised to tackle this problem, and to “make supply chains safer and more reliable”, for example by increasing the production of certain elements in the United States.

newsoceon.com