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Honda will stop production indefinitely due to chip crisis

Honda announced that it will temporarily stop production in its factories in Japan and China due to chip supply problems caused by Nexperia.

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The effects of the technology and power struggle between the Netherlands and China have spread to the global automotive industry.

Honda announced that it will stop production at its facilities in Japan on January 5 and 6 due to chip supply problems.

THE SOURCE OF THE CRISIS IS THE NEXPERIA DISPUTE

The Japanese manufacturer is having difficulties in supplying older generation chips from Nexperia due to the delivery crisis between the Dutch government and the company’s Chinese owner.

The Netherlands’ intervention in the company and China’s ban on exports led to a major rupture in the global supply chain.

CHINESE FACTORIES AND BASIC SYSTEMS WERE AFFECTED

In addition to the outages in Japan, the company also decided to close its three factories in China between December 29 and January 2.

These missing modules are used in vital systems in every vehicle, such as power steering and automatic windows.

PROBLEMS CONTINUE IN THE SUPPLY CHAIN

It is known that other automobile giants such as Volkswagen and BMW have also reduced their production due to similar problems.

Although signals of softening in export restrictions were given after the talks between the leaders, disruptions in the supply chain continue to affect the sector.

Honda will stop production indefinitely due to chip crisis
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