Honda halts production in two countries
Honda is temporarily suspending production in Japan and China between late December and early January due to the ongoing semiconductor shortage, expanding the impact of a logistics crisis that has been reshaping the industrial plans of Japan’s second-largest automaker for months.
The decision includes a five-day shutdown—starting on December 29—of three production plants in China operated through a joint venture with a local manufacturer. Separately, some factories in Japan will remain inactive on January 5 and 6, with operations resuming on January 7, accompanied by reduced production capacity for three consecutive days, CE Report quotes ANSA.
The interruption follows a series of stoppages already recorded in recent months, in October and November, when Honda temporarily halted operations in Mexico due to severe disruptions in chip supplies.
According to company sources, these disruptions stem from a geopolitical dispute between the Netherlands and China over control of a key semiconductor foundry, whose domino effect has also reached plants in the United States and Canada. The crisis originated in late September, when the Dutch government, at the request of the United States, announced government intervention in Nexperia, controlled by Chinese electronics giant Wingtech Technology, citing shortcomings in corporate governance.
As reported by CE Report, the financial impact on the Japanese automaker is becoming increasingly serious. In its November outlook for the fiscal year ending in March 2026, Honda forecast an operating loss of 150 billion yen, about €820 million, directly attributable to production cuts linked to the semiconductor shortage. The company also warned that this deficit could worsen if supply conditions do not improve.
