Honda Motor plans to reduce vehicle production at plants in Japan and China from late this month through early January due to a semiconductor shortage. In Japan, operations will be suspended at specific plants on January 5 and 6, while in China, three joint venture facilities will halt for five days starting December 29.
Honda Motor will reduce vehicle production at certain plants in Japan and China from late December through early January due to a semiconductor shortage, company officials said. In Japan, operations at the Yorii plant in Saitama Prefecture and the Suzuka plant in Mie Prefecture will be suspended on January 5 and 6, in addition to New Year's holidays, with reduced output on January 7 to 9. In China, three joint venture plants—reported as with Dongfeng Motor in one source and Guangqi Honda Automobile in another—will halt operations for five days starting December 29, as previously planned.
The shortage stems from China blocking exports of products from Nexperia, owned by Wingtech Technology, amid U.S.-China tensions. Nexperia produces semiconductors for vehicle control systems, including functions like activating windshield wipers and opening windows. Honda previously cut production in North America during October and November due to the same issue.
The company has lowered its sales forecast for the fiscal year to 3.34 million units from 3.62 million. Honda's shares fell 1.5% in Tokyo trading. Although the firm anticipated resuming normal production from late November, ongoing supply chain disruptions indicate persistent challenges.
Carmakers worldwide have faced production disruptions from the global chip shortage, with Honda particularly affected.
