The Strategist

Toyota, Honda cut production due to semiconductor shortages

03/18/2021 - 02:38

The global shortage of semiconductors resulted production cuts in North America in two Japanese car companies, according to The Wall Street Journal.

Governo do Estado de São Paulo via flickr
Governo do Estado de São Paulo via flickr
Honda announced that it would suspend production at almost all of its plants in the U.S. and Canada starting March 22. It is assumed that work at five plants will be suspended for one week, but the company's managers do not rule out that the downtime could last even longer if the situation with spare parts supply does not improve. 

The company explained the need for the suspension of production by the disruption in parts supply caused by congestion at the seaports, shortages of semiconductors, severe weather conditions in the central belt of the US, and the effects of the COVID-19 pandemic.

Toyota, for its part, will cut production at its plants in Kentucky, Alabama and Mexico. The company said it will periodically cut shifts or production lines for the Camry and Avalon sedans, the Tacoma pickup and a hybrid version of its RAV4 sport utility vehicle to cope with the shortage.

Earlier, several other automobile concerns, including Ford, General Motors, Opel, Fiat Chrysler and Nissan, announced production cuts due to semiconductor shortages.