Production will be off-line for one week.
Honda joins a growing number of automakers that are affected by the global semiconductor shortage. Reuters reports that the automaker will stop production in the US and Canada for a week, and will idle production at multiple facilities. It’s not just the chip shortage that is causing production to slow down after a difficult and intense year for automakers.
According to the automaker, the shutdown was caused by several factors. As additional obstacles, the company cited the ongoing coronavirus pandemic, congestion at shipping ports and severe winter weather. Although the company did not comment on how much vehicle production would be lost due to the shutdown Sam Fiorani (Vice President of Global Vehicle Forecasting at AutoForecast Solutions) told the publication that Honda’s US- and Canadian plants produce approximately 30,000 cars per week.
Honda is a major North American producer. Honda has a strong presence in North America. There are many plants that produce vehicles, SUVs, engines and other components. The shut down also affects Accord, Civic, and other important models. Mexico is the only production area that has not been affected. Honda informed Reuters, that it had not yet made any announcements regarding production cuts in Mexico. With the booming demand for consumer electronics, automakers have had to contend with it. Supply chains have been strained by the increased number of people who work from home and the fact that many children are home for school.
Around the globe, automakers are experiencing difficulties. General Motors had earlier this month announced that it would be extending its production shutdowns. This has led to the company building select 2021 Chevy silverado and GMC Sierra models that lack the Active Fuel Management system. This will result in lower fuel economy ratings. Ford had to reduce production of its F-150 pickup truck. Both companies predict a loss of between $2 and $2.5 billion in earnings.