Toyota, Honda to Halt Some U.S. Production Over Supply Shortages

Honda said it would halt production at most of its U.S. and Canadian car factories next week because of supply-chain issues including port backlogs that have delayed the delivery of parts.

Honda said a combination of the port issues, a shortage of semiconductors, pandemic-related problems and fallout from severe winter weather across the central U.S. led to the decision. The cold caused pipes to burst in some of its factories.

The car industry has been under stress since the coronavirus pandemic upended the global supply chain. A sharp bounceback from last spring’s initial slowdown has left companies scrambling. Most car makers have said the global shortage of semiconductors would force production cuts, and General Motors Co. , Ford Motor Co. and Nissan Motor Co. all announced cuts or temporary plant shutdowns to deal with it.

But jammed ports in Los Angeles and Long Beach, Calif., are particularly a problem for Asian car makers that import parts used in their U.S. factories.

The shutdown is set to start at most of Honda’s five auto plants in the U.S. and Canada on March 22 and last a week, the company said, without specifying which plants would halt production.

Honda said the duration of the shutdown could change depending on parts supply. Workers will continue to be paid to perform other tasks at the plants, it said.

Honda last suspended production this time last year when the U.S. started to implement lockdowns to prevent the spread of the novel coronavirus. In April, the company furloughed around 14,000 workers as the production shutdowns stretched on.

Write to Sean McLain at [email protected]