Reviews Honda suspends production at five assembly plants

08:40  17 march  2021
08:40  17 march  2021 Source:   ouest-france.fr

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Honda suspend sa production dans cinq usines d'assemblage © VCG / Getty Images Honda suspends production at five assembly plants The Japanese group has suspended a large part of its production in North America due to shortages of rooms.

Japanese automaker Honda will suspend production at its five auto assembly plants in North America for a week, due to multiple spare parts supply issues, a spokesperson for the group said on Tuesday (March 16th). "All our auto factories in the United States and Canada will be affected, most of the factories temporarily suspending production during the week of March 22," the spokesperson told AFP.

Honda later clarified that they were five factories, one in Ontario (Canada), two in Ohio (eastern United States), one in Indiana (eastern) and the last in Alabama (south). However, the group did not provide an estimate of the impact on its production volumes in the region. "We are facing a number of supply chain issues related to the impact of Covid-19, congestion at various ports, semiconductor shortage and severe winter weather in recent weeks." , which paralyzed part of the country, including Texas, said the spokesperson.

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Workers in closed factories will however have the possibility of continuing to work, no temporary layoff is envisaged, he assured. “As this is a moving situation that requires flexibility, the timing and duration of production adjustments could change,” he warned. Following these announcements on the Tokyo Stock Exchange, Honda shares lost 1.25% to 3,295 yen at mid-session, on a leading Nikkei index close to equilibrium (+ 0.08%).

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The automotive sector has been particularly penalized by the global shortage of semiconductors since the start of the year. The American manufacturer General Motors has also had to temporarily close factories in North America and Latin America for this reason. United States President Joe Biden has promised to tackle this problem, and to "make supply chains safer and more reliable", for example by increasing the production of certain elements in the United States.

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