Leading Japanese manufacturers have cut output at various factories due to the worsening global semiconductor shortage as chip manufacturers struggle to meet high demand from consumer electronics companies.
Barriers and travel restrictions encourage inbound customers to grab more phones, game consoles, smart TVs and laptops, which has led to increased demand for the slits used in these devices. That means car carriers from Toyota Motor Corp. to Volkswagen AG at risk of not getting enough parts to get fuel back in their own industry.
Chen Shihua, deputy general secretary of the China Automobile Manufacturers Association, said the chip shortage had hit the Chinese car industry significantly since the end of December and could continue in the second quarter. He noted that some chip manufacturers have increased their prices, so it is difficult to quantify the impact in terms of reducing vehicle sales.
That has led traders around the world to cut back on production.
Here is the level of play for Japanese companies:
Corp. Toyota Motor Corp.
Toyota said on the morning of January 15 that it will suspend four production lines at three plants in Japan’s Aichi prefecture due to a shortage of parts. The lines will begin work for the move in the afternoon, a spokesman for the company said.
Toyota told Jan. 10 that it is cutting production of its full-size pickup truck Tundra due to global shortage of semiconductors. The company plans to cut production of its San Antonio-made Tundra model by 40% this month due to limited chip supply.
In China, Toyota suspended lines at its factory in Guangzhou on Jan. 11 due to a shortage of parts. Toyota will work with the facility with Guangzhou Automobile Group Co .; the plant has exported up to 300,000 vehicles a year in recent years, including the Camry. The lines resumed work on the night before January 12 because it was possible to get the necessary parts, spokeswoman Shino Yamada said.
Honda Motor Co.
Honda is seeing the impact of chip shortages in China and is considering cutting output. “We will replace some models and adjust our workflows when needed,” a Honda spokesman said on January 13. On the same day, Honda reiterated that it would suspend production at Swindon from January 18 due to supply issues, and aiming to resume on January 22.
In North America, Honda announced this week that it will reduce the production of the Accord, Civic and Insight sedans, as well as the Odyssey minivan and Acura RDX, a crossover convenience vehicle. Honda will shift production at its Marysville and East Liberty plants in Ohio, as well as facilities in Alabama, Indiana and Canada. Honda will cut output by a few thousand units by the end of January, and the change is likely to continue, according to the Nikkei, which reported earlier on Honda North America ‘s declines.
Honda was among the first global manufacturer to warn of chip shortages, announcing a two-day stop in production at their plant in the UK on January 5 and 6. Founded in 1985, the Swindon facility removes Civilian slums and employs about 2,900 workers since November. The plant is expected to operate until July 2021, when it was signaled for closure, a decision announced in 2019.
Nissan Motor Co.
Production of the Note hatchback compact will be cut by about 8,000 units this month, part of a total output reduction that could exceed 10,000 vehicles and last through March, Nikkan Kogyo reported on Jan. 15. A spokesperson for Nissan declined to comment on specific details of the product cut.
Nissan said on January 8 that it is cutting back on production at one of its plants in Japan this month. “Global shortage of semiconductors has affected parts supply in the automotive sector,” said Azusa Momose spokeswoman. “As a result of this shortage, the Oppama plant in Japan will change production in January, reducing production on the Nissan Note.”
Subaru Corp.
Subaru will cut production by a few thousand units each in January at factories in Japan and the U.S., a Jan spokesman said. 14.
“We are changing multimodal production in our Gunma and U.S. facilities due to delays in chip delivery,” the spokesperson said. “The change began from January 11 for Gunma and from January 8 in the USA. We are monitoring the deadlines. Other companies are involved in the delivery delays, so our plan is up to them. The effect on yield in February and beyond is unclear. ”
Subaru is also closing its main Gunma factory, along with Yajima and Oizumi plants, in Japan for two days starting Friday due to chip shortages. The manufacturer said it was assessing the impact on its fiscal earnings 2020.
Suzuki motor corp
There will be an impact on productivity, but the automaker is still examining details including which models may be affected, a spokesman for the phone said Jan. 12.
Corp. Mitsubishi Motors Corp.
While Mitsubishi Motors is still investigating for any impact on output, production has not been forced to change at this time due to chip shortages, a spokesman for the company said Jan. 12.
Mazda Motor Corp.
Mazda is currently investigating whether there was any impact on production, spokeswoman Naoto Mawatari said by phone Jan. 12.