Honda Motor Co. announced early this week that it would be halting its production at its major plants in the U.S. and Canada. The company stated that the work suspension would last only a week.
Causes of the work disruptions
As per Reuters, the spokesperson for Honda revealed that the company would temporarily stop all production activities in the entire week starting March 22. The Japanese automaker cited chip shortage due to the unavoidable effects of the COVID-19 pandemic.
It was added that aside from this, the company was also affected by the severe weather and congestion at different ports. For these reasons, Honda was forced to suspend all the production works in some of its factories across North America.
The car manufacturer did not indicate the number of vehicle units impacted. However, it shared that the company’s production and purchasing teams are working to minimize the effect of the situation. The company added that the length of production adjustments could change, but the workers may still continue to work in Honda’s factories.
The list of affected plants
At any rate, Bloomberg reported that some of the Honda plants that will be closed for a week include the one in Marysville, Ohio, Indiana, Alabama, and Ontario, Canada. It is hoped that work suspension will only be for a week.
In 2020, Honda was able to churn out 1.45 million vehicle units in North America. Although this is a lot, the production rate was down by 20% compared to 2019’s record. The automaker has a total of 12 plants in the U.S. and one in Canada.
Vice president of vehicle forecasting company, AutoForecast Solutions, Sam Fiorani, stated that normally, Honda makes around 30,000 units per week. Thus, it is predicted that the company will lose this much sales for this number of vehicles.
Meanwhile, the chip shortage is still a big problem among automakers because, despite the efforts to boost the production of the much-needed chips to meet the demands worldwide, semiconductor companies are still not able to produce as much. In fact, Toyota Motor Corp is also temporarily halting its own production next week due to the same issues as with Honda.


Bendigo and Adelaide Bank Posts Strong Q3 Earnings, Announces AI-Driven Job Cuts
Chinese Brands Are Taking Over Brazil — And It's Just Getting Started
Anthropic's Mythos AI Model Sparks Emergency Cybersecurity Meeting With Top U.S. Bank CEOs
Goldman Sachs, ANZ Cut Oil Forecasts Amid U.S.-Iran Ceasefire Hopes
NIO ES9 SUV Launch Sends HK Shares Down 7% Despite Bold Pricing Strategy
MATCH Act: How New U.S. Chip Legislation Could Freeze China's Semiconductor Ambitions
Anthropic Fights Pentagon Blacklisting in Dual Federal Court Battles
China's AI Stocks Surge as Zhipu and MiniMax Hit Record Highs
SanDisk Joins Nasdaq-100, Replacing Atlassian on April 20
OpenAI Addresses Security Vulnerability in macOS App Certification Process
Chalco Stock Surges as Q1 2025 Profit Forecast Jumps Up to 58%
Disney Plans to Cut 1,000 Jobs Amid Ongoing Restructuring Efforts
Kia Cuts EV Sales Target for 2030 Amid Slowing Demand and U.S. Policy Shifts
China Vanke Seeks Bond Extension Amid Mounting Debt Crisis
Foreign Investors Pour $18.65 Billion into Japanese Stocks Amid Market Stabilization
U.S. Automakers Push Back Against EU Rules Blocking American Trucks from European Market
Lumentum Holdings Rides AI Wave With Order Book Filled Through 2028 



