Honda is forced to reduce Japanese production. The reason is a declining supply of computer chips.
In Japan, Honda production will be scaled back this month by roughly 4,000 cars, reports Nikkei. The reason given is a declining supply of computer chips. The supply and current stock would no longer be sufficient to keep up with production. It should come as no surprise that production delay at the supplier due to the corona virus is the biggest cause. Especially the production of the Fit, known to us as the Jazz, appears to be affected by it. Honda reportedly fears an exponentially growing problem, which could mean ‘several tens of thousands of cars’ less than planned by March.
It is the second time in a short time that Honda has faced such a problem. Closer to home, in Swindon, England, the factory had to be shut down for a few days earlier this week due to a shortage of parts. Not only corona but also Brexit would have played a role in this. That production has now resumed. Honda is also not the only manufacturer where shortages are starting to lead to dire situations. Volkswagen fears a production delay in Germany of ‘up to 100,000 cars’ due to a declining supply of parts.