WASHINGTON (Reuters) – Honda Motor Co said late on Tuesday that supply chain issues will shut down most US and Canadian auto factories’ production for a week.
The Japanese automaker added that the problem will result in production cuts in all US and Canadian factories next week, citing “the impact of COVID-19, congestion in several ports, microchip shortages and harsh winter weather in recent weeks. . “
“In one way or another, all of our auto factories in the US and Canada will be affected,” said Honda.
Some US and Canadian plants are expected to have smaller production cuts next week, but a Honda spokesman added “the timing and length of production adjustments may change.”
The company declined to specify the number of vehicles affected, but said, “Purchase and production teams are working to mitigate the impact of this situation.”
The company added that when production is suspended, Honda workers “will continue to have the opportunity to work in the affected factories.” Honda workers were notified of the production cuts on Monday.
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said Honda typically produces about 30,000 vehicles per week in the United States and Canada.
The production problems are hitting Honda factories in Ontario, Ohio, Alabama and Indiana. Honda said its operations in Mexico have not announced any production cuts.
The chip shortage, which has affected most auto makers worldwide, stems from a confluence of factors as auto makers, who shut down factories for two months during last year’s COVID-19 pandemic, compete with the expanding consumer electronics industry for chip deliveries.
General Motors Co has scaled back production in many factories, warning it could shave this year’s revenues to $ 2 billion.
GM’s US rival Ford Motor Co previously said the deficit could hurt profits to $ 2.5 billion by 2021 and said it had curtailed production of its flagship F-150 pickup truck.
Reporting by David Shepardson and Ben Klayman; Edited by Shri Navaratnam and Christopher Cushing