WASHINGTON (Reuters) – Honda Motor Co said on Tuesday that problems with the supply chain will force production stoppages at most auto plants in the United States and Canada for a week.
The Japanese automaker added that the problem will result in some production cuts next week at all plants in the US and Canada, citing “the impact of COVID-19, congestion at several ports, the shortage of microchips and the harsh winter over the past few years. weeks “.
“Somehow, all of our car factories in the US and Canada will be affected,” said Honda.
Some plants in the U.S. and Canada are expected to see minor production cuts in the next week, but a Honda spokesman added that “the time and duration of production adjustments may change”.
The company declined to specify the volume of vehicles affected, but said “the 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 in the affected factories”. Honda workers were notified of production cuts on Monday.
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said Honda produces about 30,000 vehicles a week in the United States and Canada.
Production problems are affecting Honda’s plants in Ontario, Ohio, Alabama and Indiana. Honda said its Mexico operations did not announce any production cut.
The chip shortage, which hit most global automakers, stems from a confluence of factors, as automakers, which closed factories for two months during the COVID-19 pandemic last year, compete with the growing consumer electronics industry. for chip supplies.
General Motors Co cut production at many factories and warned that it could cut profits this year by up to $ 2 billion.
Ford Motor Co, a rival to GM in the United States, said earlier that the shortage could hurt its 2021 profit by up to $ 2.5 billion and said it had reduced the production of its F-150 pickup.
Reporting by David Shepardson and Ben Klayman; Editing by Shri Navaratnam and Christopher Cushing