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Honda suspends car production at all factories in the US and Canada

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Exactly a year ago, Honda also stopped its assembly plants in North America, announcing a sharp drop in demand for cars due to the outbreak of the coronavirus pandemic. Today the reason for the shutdown was the shortage of microcircuits.

Honda suspends car production at all factories in the US and Canada

Honda Motor said Tuesday that supply chain problems are forcing it to suspend production at most auto plants in the US and Canada for a week.

The Japanese automaker added that the problem will lead to some production cuts next week at all plants in the US and Canada. The cause is attributed to the impact of COVID-19, congestion in various ports, a lack of microchips and harsh winter weather in the past few weeks.

The company declined to indicate the volume of vehicles affected, but said that “the purchasing and manufacturing teams are working to limit the impact of this situation.”

According to AutoForecast Solutions, Honda typically produces about 30,000 vehicles a week in the US and Canada.

The chip shortage that plagues most of the world's automakers is a confluence of factors as automakers who sharply cut chip purchases last year are now competing with computer and home appliance makers for purchases.

General Motors Co cut production at its U.S. plants and warned it could lose hundreds of millions of dollars in profits this year.

Ford Motor Co previously said the chip shortage could hurt profits in 2021 by up to $ 2.5 billion.

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