Quick Takeaways
- Honda is temporarily suspending and scaling back vehicle production in Japan and China due to ongoing semiconductor supply constraints.
- The disruption is expected to significantly impact near-term output and could reduce Honda’s operating profit by about JPY 150 billion.
On December 18, Honda Motor Co., Ltd. confirmed temporary production disruptions as the Honda semiconductor shortage continues to impact global vehicle manufacturing. The company stated that select car assembly operations in Japan and China will be paused or scaled back due to constrained chip availability, affecting near-term output and financial performance.
Honda Semiconductor Shortage Impacts Japan and China Plants
Supply Chain Disruptions and Financial Implications
The production adjustments stem from interrupted semiconductor shipments from Nexperia B.V., a supplier with operations linked to China. As a result, Honda estimates a potential operating profit decline of approximately JPY 150 billion for the fiscal year ending March 2026, underscoring how prolonged chip constraints continue to pressure automotive supply chains and profitability.
Honda Semiconductor Shortage Impacts Japan and China Plants
- In China, three vehicle assembly plants operated under GAC Honda Automobile Co., Ltd. will suspend operations from December 29 to January 2.
- In Japan, while specific facilities were not officially named, production is expected to halt on January 5 and 6, followed by reduced output between January 7 and 9 as part of the response to the Honda semiconductor shortage.
Supply Chain Disruptions and Financial Implications
The production adjustments stem from interrupted semiconductor shipments from Nexperia B.V., a supplier with operations linked to China. As a result, Honda estimates a potential operating profit decline of approximately JPY 150 billion for the fiscal year ending March 2026, underscoring how prolonged chip constraints continue to pressure automotive supply chains and profitability.
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