Volkswagen, Toyota, Honda among carmakers reducing production due to chip shortage

Shortages in automotive semiconductors have disrupted production among global carmakers including Germany's Volkswagen and Japan's Toyota and Honda.

In December, Volkswagen announced that inadequate semiconductor supply forced it to adjust production at its plants in China, North America, and Europe.

Meanwhile, Toyota has reduced production of its pickup truck "Tundra" at its Texas plant, while another Japanese brand Nissan is expected to reduce the production of its compact car Note by more than 15,000 units in January.

Honda plans to cut production by over 30,000 units per month, or 20 percent of its production, in China also this January, while cutting production of its compact model Fit at factories in Japan.

North America-based Fiat Chrysler Automobiles (FCA) and Ford are also affected by a chip shortage.

FCA will suspend plant operations in Ontario, Canada, which produces luxury sedans and postpone the resumption of operations at its Mexican plant.

Ford has also decided to put a stop to its Kentucky plant for a week.