TORRANCE, California: After announcing a weekly production shutdown at most of its U.S. plants, Honda Motors has decided to further suspend operations at some plants in the week of March 29 due to chain outages supply.
The Japanese carmaker, which had previously announced a one-week shutdown from March 22, attributed production cuts to “the impact of COVID-19, congestion at several ports, the shortage of microchips and severe winter weather, “Reuters reported.
There has been a global shortage of semiconductor chips in the wake of the COVID-19 pandemic. Last year, vehicle manufacturers canceled chip orders and shut down their plants in North America for two months due to the pandemic, even when the chip industry’s demand Consumer electronics increased as more people started working from home and video games gained popularity amid numerous blockages and restrictions.
Now, the chip supply deficit has affected car production worldwide.
While the shortage of chips has forced Ford Motor to further reduce production in the United States, it has caused Stellantis, the world’s fourth-largest automaker, to decide to build and store its highly profitable Ram 1500 trucks. Classic in Warren, Michigan and Saltillo, Plants of Mexico.
The vans will be completed and shipped to dealers only after the chips are available, Stellantis said.
Last week, Toyota Motor announced it would reduce production at four of its plants in Kentucky, West Virginia and Mexico, due to “shortages of petrochemicals” and “recent severe weather conditions,” which have affected the production.