What happens to Honda and Toyota production because of the chips
Honda and Toyota halt production in North America due to lack of chips. All the details
Covid crisis, bad weather but also (and above all) lack of chips force the factories of Honda and Toyota in the United States and Canada to stop or slow down production.
Due to problems in the supply chain, most plants will close production and others will operate at a reduced rate. The workers "will continue to work in the affected plants". There is no talk of layoffs, at least for the moment.
Both Honda and Toyota had already reduced production at plants around the world earlier this year due to a lack of chips.
The auto industry has been grappling with a shortage in supplying chips since the end of last year.
In the United States, the White House did not stand by and watch. In late February , US President Biden ordered a review of supply chains for four sectors. Among these is that of semiconductors.
The United States, China and even the European Union are trying to increase chip production .
All the details.
WHAT HONDA WILL DO AT FACILITIES IN OHIO, INDIANA, ALABAMA AND ONTARIO
Honda Motor Co. will suspend production at some plants in the United States and Canada next week as the pandemic, chip shortage and harsh winter weather hit its supply chain.
The Japanese automaker will halt work at its Marysville and East Liberty plants in Ohio, as well as others in Indiana, Alabama and Ontario, potentially for a week. The company spokesman said Wednesday, without specifying the volume of vehicles affected.
The Japanese company has 12 manufacturing plants in the United States and one in Canada.
PRODUCTION DOWN IN 2020
As Bloomberg recalls, Honda produced 1.45 million vehicles in North America last year, down 20% from 2019.
TOYOTA ALSO SUSPENDS PRODUCTION IN KENTUCKY, WEST VIRGINIA AND MEXICO
National rival Toyota also moved in this direction on Wednesday.
Toyota Motor Corp. said the cold front reduced the supply of petrochemicals, affecting manufacturing in the United States and Mexico. Therefore, it will temporarily suspend certain lines, shifts or entire plants in Kentucky, West Virginia and Mexico.
THE GLOBAL LACK OF SEMICONDUCTORS
So closures do not depend solely on a global shortage of microchips. It is also the fault of the "congestion in the various ports" due to the blocks for Covid-19 and the bad weather that has hit the United States in recent weeks, with consequent delays in supplies.
Bad weather has aggravated the difficulties of car manufacturers who are already struggling with the shortage of semiconductors.
Semiconductors have been in short supply for months after smartphone, PC, tablet and TV makers underestimated user expectations during the pandemic. As a result, they increased their orders, catching the chip makers off guard.
Major tech companies have also warned of a severe supply imbalance.
THE RACE FOR THE PRODUCERS
"Semiconductor manufacturers are working hard to fill the gaps in supply," said Peter Richardson, partner of Counterpoint Research at the BBC . “But it will take some time for the investment to translate into more supply. This means that the shortage of some products could continue for several months, perhaps even until 2022 ”.
IMPACTS ON AUTOMOTIVE HOMES
The problem could impact nearly 1 million units of world light vehicle production in the first quarter, according to data firm IHS Markit.
Due to the General Motors chip shortage, Ford and Nissan Motor have announced production cuts or temporary plant shutdowns.
Germany's Volkswagen also said it was facing a large backlog of unbuilt vehicles caused by both chip shortages and blizzards in Texas.
THE CONSEQUENCES OF THE LACK OF CHIPS ON HONDA AND TOYOTA
Vehicle production in Japan fell by 500,000 units due to chip shortages.
Mitsubishi UFJ Morgan Stanley Securities Co. said the shortage could reduce Honda's production by 300,000 units. Toyota's is less affected because it does not depend on foreign semiconductor companies.
SEMICONDUCTORS, A GEOPOLITICAL QUESTION
As we said, the semiconductor industry has turned into a high-risk geopolitical issue and a source of tension between the US and China, with potential implications for global trade.
At the end of February, US President Biden ordered a review of supply chains to reduce dependence on rivals (China primarily) for four sectors. Among these is that of semiconductors.
Last week, a US National Security Commission recommended that Congress strengthen "choke points" on chip manufacturing technology. The intent is to prevent China from overtaking the US in semiconductors in the coming years.
Efforts to stop supplying chips to Huawei and to encourage the construction of advanced semiconductor factories in the United States have prompted China to invest even more in the sector.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/cosa-succede-alla-produzione-di-honda-e-toyota-a-causa-dei-chip/ on Thu, 18 Mar 2021 15:07:25 +0000.