Image source: Honda Motor Company
Honda Motor Co Ltd (NYSE: Chart HMC - $25.86 0.01 (0.039%) ) will halt production temporarily at most of its factories in North America due to supply chain issues.
In a statement to Reuters on Tuesday, the automaker cited “the impact from COVID-19, congestion at various ports, the microchip shortage and severe winter weather over the past week” as reasons for the production cuts.
Each week, Honda typically produces about 30,000 vehicles in the US and Canada.
The Hill reported that the temporary suspension of operations will go into effect during the week of March 22, but Honda noted “the timing and length of production adjustments could change.”
The company also said employees impacted by the pause will not be laid off and will have the opportunity to continue to work at the affected locations, which are reportedly in Ontario, Ohio, Alabama and Indiana.
Factories in Mexico will not be affected, Reuters reported.
The automaker declined to specify how the shutdown would impact its overall vehicle output but said “purchasing and production teams are working to limit the impact of the situation.”
Honda said it is also “adjusting production as necessary in order to carefully manage the available supply of parts and meet the needs of our customers.”
This marks the second time this year that Honda has had to alter its manufacturing plans. In January, Honda said it would cut production due to the ongoing chip shortage, joining a number of other car manufacturers who have been impacted by supply chain issues.
Source: Equities News