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Honda Shuts Mexico Plant, Trims U.S. and Canada Output as Chip Squeeze From Nexperia Dispute Hits

The stoppage is the first confirmed impact on a Japanese automaker from export curbs on Nexperia following Dutch state oversight.

Overview

  • Production at Honda’s Celaya, Mexico facility stopped Tuesday local time, which builds the HR-V and has capacity of about 200,000 vehicles a year.
  • Honda began reducing output at plants in the United States and Canada on Monday, and the company has not said when production will resume in Mexico.
  • The shortage stems from disrupted supplies from Netherlands-headquartered Nexperia after China restricted exports of its China-made products.
  • Honda declined to detail the scale of reductions, and Japan’s auto industry association warned the situation could seriously affect global production.
  • Nissan reported no direct impact so far but is surveying suppliers and cautioned the situation may become a large-scale problem.