Honda to temporarily halt UK car output due to COVID-related supply issues


Japanese carmaker Honda said Wdnesday it would halt output at its British factory from Monday to Thursday next week due to COVID-19 related global supply chain issues, the latest production suspension in recent weeks.

"The situation is currently being monitored with a view to re-start production on Friday 22 January," the company said in a statement.

Honda also stopped car output for a few days in December as some major container ports, such as Felixstowe, struggled to cope with disruption caused by COVID-19, pre-Brexit stockpiling and Christmas.

A further stoppage occurred at the start of January.

Last week, Honda said its domestic output could be affected by a shortage of semiconductors as automakers and electronic makers face a lack of chips while consumer demand has been bouncing back from the pandemic.

In Britain, the firm made just under 110,000 Civic cars in 2019 but is due to permanently close the site this year.

© Thomson Reuters 2021.

©2021 GPlusMedia Inc.

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Every excuse not to build more cars to park in the stock around the factory is fine. Factory is closing soon, so understandable Honda slows production with all means

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This is the result of Japan's semiconductor industry winding down. Now that chips are made in Taiwan, Japan has to compete with Apple, Sony, Xbox, AMD, and Qualcomm for chip supplies and are outbid by foreigners.

Notice how Korean auto plants across the globe are still operational since they can source chips from Korean chip plants.

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Because a lot of companies are interconnected through complicated transactions, problems because of COVID-19 have much serious effects on them with each companies linked. This domino effects or chine reaction makes the problems much more bigger exponentially, I think.

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