Honda closes US and Canada plants for a week

Chip shortages and broken logistics are to blame

The Japanese car company Honda Motor will temporarily stop production at many of its plants in the United States and Canada. The company suffers from a lack of chips for cars and disruptions in the supply of parts due to severe weather conditions.

It is located in the U.S. states of Ohio, Indiana and Alabama and the Canadian province of Ontario. The production may be shut down for a week, according to a Honda spokesperson. The company produced 1.45 million vehicles in North America last year, a 20 percent decrease compared to 2019. Honda has 12 plants in the U.S. and one in Canada.

Other large car manufacturers have also had to stop production because of the chip shortage. These include General Motors (GM), Ford Motor and Volkswagen. The Coronavirus outbreak has made it difficult for chip companies to supply enough chips to the automotive industry due to the strong demand for chips for smartphones, laptops and game consoles, for example.

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