News: Toyota, Honda cut North America production amid supply chain woes.
WASHINGTON (Reuters) – Toyota Motor Corp and Honda Motor Co Ltd announced new production cuts in North America on Wednesday, highlighting supply chain problems that have devastated the auto industry.
Toyota said it will cut production at four plants in Kentucky, West Virginia and Mexico this week, citing “a petrochemical shortage” and “recent severe weather conditions” affecting production.
A Toyota spokeswoman said the production cuts would “affect the production of Camry, Camry Hybrid, Avalon, Avalon Hybrid, RAV4 Hybrid, Lexus ES 350, Lexus ES 300h and Tacoma,” but declined to say how long or how much Production would be cut.
Honda said late Tuesday that supply chain issues would suspend production at most U.S. and Canadian auto plants for a week beginning next Monday – and would result in some production cuts at all U.S. and Canadian plants next week.
The company cited “the effects of COVID-19, the congestion in various ports, the shortage of microchips and the severe winter weather in recent weeks”.
On Wednesday, Honda announced in Mexico that it would cease production at its plants in that country from Thursday due to supply chain issues.
A Honda representative in a brief statement said it was unclear how long the break would be, describing the suspension at Mexican plants as a coordinated North American break.
Separately, Volvo Cars, owned by China’s Geely Holding, announced on Wednesday that it would temporarily suspend or adjust production in China and the US for parts of March due to a global shortage of semiconductor chips.
Reporting by David Shepardson; Arrangement by Steve Orlofsky and Peter Cooney
Original Source © Reuters