Honda is the latest company to remind the world that the chip shortage was, is, and will probably continue to be a major nightmare.
The firm is reducing the car output at two of its plants in the domestic market by as much as 40 percent. The production change will take place in early October, Honda says, with two lines at the Suzuka facility to cut back production by 40 percent. The assembly plant in Saitama will also lower production by 30 percent.
The production lines at the two facilities are already running at a slower speed this month after similar adjustments took place in the summer.
And if the reasons aren’t already obvious, Honda says it’s still struggling with major delays caused by the chip shortage and the health crisis that’s currently hitting some suppliers. In other words, Honda still doesn’t have enough chips to install on the vehicles it builds, so the company has no other option than to actually build fewer units altogether.
In plain English, this means that customers who are waiting for the ordered cars to arrive might be forced to wait even longer. The impacted models are the Vezel, the Stepwgn, and the Civic.
Toyota also announced earlier this week that it’s temporarily stopping production at half of its Japanese plants, once again blaming the constrained semiconductor inventory as the main reason.