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Honda to Pause Production in China and Japan as Chip Shortages Persist

The stoppages follow weeks of supply strain linked by reports to disruptions involving Nexperia.

Overview

  • Honda will halt all three Guangqi Honda plants in China from December 29 to January 2 and suspend output at domestic Japanese plants on January 5 and 6.
  • The company cited continuing semiconductor shortages as the reason for the temporary shutdowns.
  • Media reports connect the tight supply to fallout from Dutch government action involving Nexperia and subsequent export frictions with China.
  • Honda has not named the Japanese factories affected, and some reports indicate operations could be scaled back through January 9 once production restarts.
  • Shares fell about 1.5% in Tokyo after the news, and analysts say softer regional auto demand may also be influencing production plans.