Honda says domestic output could be affected by chip shortage

[TOKYO] Honda Motor said on Friday its output in Japan could be affected by a shortage of semiconductors, becoming the latest automaker hit by a chip crunch as demand rebounds from the coronavirus crisis.

"The company has begun seeing some impact in the parts supply, and to minimise the effect, we are taking measures in output transfer and quantity adjustments," a spokesperson said.

The company was examining output adjustments for each car model, he added.

The Japanese automaker will first shrink its production by about 4,000 units this month, mainly affecting the Fit subcompact made at a plant in the city of Suzuka in Mie prefecture, the Nikkei newspaper said earlier.

Automakers and electronic makers are facing a global shortage of chips as consumer demand has been bouncing back from the coronavirus pandemic, causing manufacturing delays.

A massive fire at a chip plant owned by Asahi Kasei Microdevices (AKM), a unit of Asahi Kasei, in southern Japan in October has also damaged semiconductor supply.

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While Honda's semiconductor inventory is secured until February, the company is "currently under examination for supplies from then on, including alternative supplies", the spokesperson said.

Separately, China's GAC said its joint venture with Honda had received warnings on supply of certain models, but gave no details.

Dongfeng, which also has a partnership with Honda, did not immediately respond to a request for comment.

REUTERS