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Honda suspends a large part of its production in North America

2021-03-17T05:20:13.884Z


The Japanese automaker's decision follows multiple spare parts supply issues. Japanese automaker Honda will suspend production in "most" of its factories in the United States and Canada for a week, due to multiple spare parts supply problems, a spokesperson for the group said on Tuesday. "All our auto factories in the United States and Canada will be affected, most factories temporarily suspending production during the week of March 22," the spokesperson told AFP. Read als


Japanese automaker Honda will suspend production in

"most"

of its factories in the United States and Canada for a week, due to multiple spare parts supply problems, a spokesperson for the group said on Tuesday.

"All our auto factories in the United States and Canada will be affected, most factories temporarily suspending production during the week of March 22,"

the spokesperson told AFP.

Read also: The automobile hit by the shortage of semiconductors

"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 crippled part of the country, including Texas, he said.

He stressed that Honda does not give more details on the factories concerned, the models, nor the expected impact on production.

Workers in closed factories will however have the possibility of continuing to work, no temporary layoff is envisaged, assured this spokesperson, adding that

"as this is a moving situation which requires flexibility, the schedule and the duration of the production adjustments could change ”

.

Fall on the stock market

The automotive sector is particularly penalized by the global shortage of semiconductors.

The manufacturer General Motors has also had to temporarily close factories in North America and Latin America.

United States President Joe Biden has promised to tackle this problem, and to

"make supply chains safer and more reliable",

for example by increasing production of certain elements in the United States.

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%).

Source: lefigaro

All business articles on 2021-03-17

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