WASHINGTON (Reuters) – Honda Motor Co. said Tuesday afternoon that supply chain problems will force it to stop production at most US and Canadian car plants for a week.
The Japanese carmaker added that the problem will cause some production cuts next week at all US and Canadian plants, citing “the impact of COVID-19, congestion at several ports, the shortage of microchips and the severe winter weather of recent weeks “.
“Somehow, all of our car plants in the U.S. and Canada will be affected,” Honda said.
Some U.S. and Canadian plants are expected to have smaller production cuts next week, but a Honda spokesman added that “the timing and duration of production adjustments could change.”
The company declined to specify the volume of vehicles affected, but said “purchasing and production teams are working to limit the impact of this situation.”
The company added that when production is suspended, Honda workers “will continue to have the opportunity to work at the affected plants.” Honda workers were notified of production cuts on Monday
Sam Fiorani, vice president of global vehicle prediction at AutoForecast Solutions, said Honda typically produces about 30,000 vehicles a week in the United States and Canada.
Production problems are affecting Honda plants in Ontario, Ohio, Alabama and Indiana. Honda said its operations in Mexico have not announced any production cuts.
The shortage of chips, which has affected most global automakers, is due to a confluence of factors such as vehicle manufacturers, which shut down plants for two months during last year’s COVID-19 pandemic. , competing with the consumer electronics industry for chip supplies.
General Motors Co. has cut production at many plants and warned it could add up to $ 2 billion in profits this year.
GM’s U.S. rival, Ford Motor Co., previously said the shortage could hurt 2021 profits to $ 2.5 billion and said it had reduced production of its flagship F-150 van.
Report by David Shepardson and Ben Klayman; Edited by Shri Navaratnam and Christopher Cushing