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Honda Shutters Mexico Plant as Nexperia Export Curbs Hit Supplies

Politically imposed export blocks on Nexperia parts have pinched supplies of hard-to-substitute legacy chips.

Overview

  • Honda halted vehicle production at its Celaya, Mexico factory and is trimming output in the United States and Canada due to a shortage tied to Nexperia chips.
  • China’s export restrictions on Nexperia products remain in force after the Dutch government took the company under state control late last month.
  • Volkswagen warned its outlook depends on adequate chip availability and said it cannot rule out short-term production stoppages, while ACEA cautioned assembly lines could be days from shutdowns.
  • Stellantis established a cross‑functional “war room” to manage daily risks, and suppliers and automakers are pursuing alternative sourcing and spot purchases to stretch inventories.
  • The affected parts are legacy semiconductors used for basic vehicle functions, many finished in China, and the lack of quick substitutes raises the risk of broader production disruptions without a diplomatic breakthrough.