Update: Chip Crisis, Bad Weather Impacts Honda And Toyota's North American Production

Honda Motor Co Ltd HMC would suspend production at some plants in the U.S. and Canada next week due to supply chain problems triggered by the pandemic, chip shortage, and severe winter weather, Bloomberg reports.

• The automaker would stop work at plants in Marysville, East Liberty in Ohio, Indiana, Alabama, and Ontario, possibly for a week without disclosing the volume impact. Honda manufactured 1.45 million vehicles in North America last year, down 20% year-on-year. The Japanese company had 12 manufacturing plants in the U.S. and one in Canada.
• A lower supply of petrochemical products impacted Toyota Motor Corp’s TM U.S. and Mexico production due to the cold winter leading to the temporary halt of some lines, shifts, and potentially entire plants for several days in Kentucky, West Virginia, and Mexico.
• Both Honda and Toyota already scaled back output earlier this year due to the global chip crisis.
• Morgan Stanley Securities expected the crisis to reduce Honda’s output by 300,000 units while offering some immunity to Toyota based on its self-reliance.
• “In some way, all of our auto plants in the U.S. and Canada will be impacted, with most of the plants temporarily suspending production during the week of March 22. Since this is a fluid situation that requires flexibility, the timing and length of production adjustments could change. In those instances when production is temporarily suspended, our Honda associates will continue to have the opportunity to work at the impacted plants,” Honda spokesperson told Benzinga.
• Price action: HMC shares are trading lower by 0.52% at $30.41, and TM shares are down 0.39% at $151.51.
• Note: The story has been updated with Hoda’s comments in the last bullet.