Honda Decides to Cut Production at Japan and China Plants Over Year-End Due to Semiconductor Shortage

"The Scale of Production Cuts Not Disclosed"

Honda Japan will suspend or reduce the production of finished vehicles at its factories in Japan and China from late December this year until early January next year due to semiconductor shortages.

According to Kyodo News and other sources on December 18, in Japan, production will be halted for two days, January 5 and 6, at two factories located in Yorii, Saitama Prefecture, and Suzuka, Mie Prefecture. Production will then be reduced from January 7 to 9 at the same plants.

Honda Japan temporarily halts or reduces finished vehicle production at its factories in Japan and China due to semiconductor shortages. Photo to assist understanding of the article. Photo by Reuters Yonhap News.

Numerous Chinese media outlets have also reported on this issue. In China, production at the joint venture factory with Guangzhou Automobile Group (GAC) will be suspended for five days starting December 29. Honda has not disclosed the specific scale of production cuts. Future production plans will reportedly be determined based on the status of semiconductor procurement.

Honda has not specified the exact reasons for this production adjustment. At the end of October and in November, Honda had already reduced output at its factories in the United States and Canada due to export restrictions imposed on semiconductors by Nexperia, a Chinese-owned semiconductor company. Production at its factory in Mexico was also suspended.

According to Shangguan News in China, "Honda's recently announced financial statements for the fiscal year show that operating profit, which reflects the profitability of its core business, recorded lower-than-expected production volumes due to semiconductor shortages," adding that "it was confirmed to have decreased by 150 billion yen (approximately 142.296 billion won)."