OPEN APP
Home >Companies >News >Honda says domestic output could be affected by chip shortage
Photo: Reuters
Photo: Reuters

Honda says domestic output could be affected by chip shortage

The Japanese automaker will first shrink its production by about 4,000 units this month, mainly affecting the Fit subcompact made at a plant in Suzuka in Mie prefecture, a report said

Honda Motor said on Friday its output in Japan could be affected by a shortage of semiconductors, becoming the latest automaker hit by a chip crunch as demand rebounds from the coronavirus crisis.

"The company has begun seeing some impact in the parts supply, and to minimize the effect, we are taking measures in output transfer and quantity adjustments," a spokesman said.

The company was examining output adjustments for each car model, he added.

The Japanese automaker will first shrink its production by about 4,000 units this month, mainly affecting the Fit subcompact made at a plant in the city of Suzuka in Mie prefecture, the Nikkei newspaper said earlier.

Automakers and electronic makers are facing a global shortage of chips as consumer demand has been bouncing back from the coronavirus pandemic, causing manufacturing delays.

A massive fire at a chip plant owned by Asahi Kasei Microdevices Corp (AKM), a unit of Asahi Kasei Corp, in southern Japan in October has also damaged semiconductor supply.

While Honda's semiconductor inventory is secured until February, the company is "currently under examination for supplies from then on, including alternative supplies," the spokesman said.

Separately, China's GAC said its joint venture with Honda had received warnings on supply of certain models, but gave no details.

Dongfeng, which also has a partnership with Honda, did not immediately respond to a request for comment.

This story has been published from a wire agency feed without modifications to the text.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Close
×
Edit Profile
My Reads Redeem a Gift Card Logout