TOKYO -- Honda said it is weighing production cuts in Japan due to a global shortage of automotive microchips, following a report that it would start trimming output this month.
Japan's No. 3 automaker plans to dial down domestic output by 4,000 units in January, a slowdown mainly affecting the small Fit model at Honda's Suzuka plant, the country's Nikkei newspaper reported on Friday.
The bottleneck might result in the loss of tens of thousands of units through March for Honda, the report said. The cause is a tight supplies of computer chips for cars.
A Honda spokeswoman said the company is aware of the industrywide microchip shortage and is considering countermeasures. But it is too soon for Honda to say when the company might announce any output adjustments or how many vehicles might be impacted, she said.
Automakers and suppliers first sounded the alarm about brewing supply chain problems last month, warning that it may hit auto production in the first quarter of 2021.
Global makers of semiconductors scaled back output during the pandemic lockdowns of early 2020. But now, these manufactures are slow to catch up to demand that is rapidly ramping back up.
Fueling the shortage is soaring demand for chips in digital devices such as phones and computers, which is diverting deliveries away from automotive customers.
Among those already flagging interruptions are automaker Volkswagen Group and suppliers Bosch and Continental. Other automakers, including General Motors, have said they also see the pipeline being pinched and are working to avoid production slowdowns.
The Link LonkJanuary 08, 2021 at 03:44PM
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Honda weighs production cuts amid global microchip shortage - Automotive News Europe
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