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Honda Extends China Plant Shutdown to Jan. 19 as Chip Shortages Persist

Investors signaled confidence with shares rising nearly 2%.

Overview

  • Three GAC-Honda factories in China will stay offline two weeks beyond the planned January 5 restart, covering two legacy plants and a Development District NEV facility.
  • Analysts estimate the extension will trim roughly 23,000 vehicles from near-term output.
  • The affected sites produced about 816,597 vehicles in 2024, or roughly 22% of Honda’s global production, highlighting the importance of the GAC venture.
  • Reporting links the disruption to supply strain following the Dutch government’s late-2025 seizure of chipmaker Nexperia, though Honda did not name a supplier in its latest notice.
  • Honda also paused operations at its Suzuka and Yorii plants in Japan on January 5–6 for supply-related adjustments, while automakers court AEC-qualified chip sources and strengthen supply-chain risk tools.