WASHINGTON (Reuters) – Honda Motor Co. said late Tuesday that supply chain problems would force production at most US and Canadian car plants for a week.
The Japanese manufacturer added that the problem will result in some production cuts next week at all factories in the US and Canada, citing “the impact of COVID-19, congestion in various ports, lack of microchips and severe winter weather in the last few weeks.”
“In a way, all of our car factories in the US and Canada will be affected,” Honda said.
Some factories in the US and Canada are expected to have lower 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 “procurement 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 on Monday about the reduction in production.
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said Honda typically produces about 30,000 vehicles a week in the United States and Canada.
Production problems affect Honda plants in Ontario, Ohio, Alabama and Indiana. Honda said its operations in Mexico did not announce any reduction in production.
The lack of chips, which has affected most carmakers worldwide, stems from a confluence of factors such as carmakers, which shut down the plant for two months during last year’s COVID-19 pandemic, competing with the expanding consumer electronics industry. for chip supply.
General Motors Co. has cut production at many factories and warned it could shave up to $ 2 billion in earnings this year.
GM’s US rival, Ford Motor Co., previously said the shortage could affect its 2021 profit by up to $ 2.5 billion and said it had curtailed production of its F-150 pilot pickup.
Reporting by David Shepardson and Ben Klayman; Editing by Shri Navaratnam and Christopher Cushing