Honda, Toyota hit by supply chain snags in N.A.

WASHINGTON -- Honda Motor Co. said late Tuesday supply chain issues will force a halt to production at a majority of U.S. and Canadian auto plants for a week, and added Wednesday that the production stoppages will extend to plants in Mexico.

Separately, Toyota Motor Corp. said a severe cold front last month has reduced supply of petrochemical products, impacting production in the U.S. and Mexico.

Honda said the supply chain issues will result in some production cuts next week at all U.S. and Canadian plants, citing "the impact from COVID-19, congestion at various ports, the microchip shortage and severe winter weather over the past several weeks."

"In some way, all of our auto plants in the U.S. and Canada will be impacted," Honda said.

Some U.S. and Canadian plants are expected to have smaller production cuts next week, but a spokesman for Honda added that "the timing and length of production adjustments could change."

A company spokesperson said Wednesday that the automaker will temporarily suspend production at its plants in Mexico beginning March 18 due to supply chain disruptions.

Toyota said some lines, shifts or potentially entire plants are expected to be temporarily halted for several days in Kentucky, West Virginia and Mexico, spokeswoman Shiori Hashimoto said Wednesday, without providing further details.

Honda declined to specify the volume of vehicles impacted but said "purchasing and production teams are working to limit the impact of this situation."

The company added when production is suspended Honda workers "will continue to have the opportunity to work at the impacted plants." Honda workers were notified of the production cuts Monday.

Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, said Honda typically produces about 30,000 vehicles a week in the United States and Canada.

The production issues are hitting Honda plants in Ontario, Ohio, Alabama, and Indiana. Honda said its Mexico operations have not announced any production cuts.

The chip shortage, which has hit most of the global automakers, stems from a confluence of factors as carmakers, which shut plants for two months during the COVID-19 pandemic last year, compete with the sprawling consumer electronics industry for chip supplies. Additionally, Automotive News reported that the winter storm in Texas could impact auto production after it halted the region's critical petrochemical plants

General Motors has cut production at many plants and warned the chip shortage could shave up to $2 billion from this year's earnings.

GM's U.S. rival Ford Motor Co. previously said the shortage could hurt 2021 profit by up to $2.5 billion and said it had curtailed production of its flagship F-150 pickup.

Bloomberg contributed to this report.