The impact of the global chip shortage on Japanese automakers



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Major Japanese automakers have slashed production at various factories due to the worsening global semiconductor shortage caused by chipmakers struggling to meet growing demand from consumer electronics companies.

Locks and travel restrictions are pushing homebound shoppers to buy more phones, game consoles, smart TVs and laptops, which has fueled demand for the chips used in these devices. This means that the automakers of Toyota Motor Corp. at Volkswagen AG may not get enough parts to fuel a nascent recovery in their own industry.

Chen Shihua, deputy general secretary of the China Association of Automobile Manufacturers, said the chip shortage had a relatively large impact on the Chinese auto industry from late December and may linger into the second quarter. He noted that some chipmakers had increased their prices, so it’s difficult to measure the impact in terms of reduced vehicle sales.

This has forced automakers around the world to cut back on production.

Here is the inventory of Japanese companies:

Toyota Motor Corp.

Toyota announced on the morning of January 15 that it would shut down four production lines at three factories in Japan’s Aichi Prefecture due to parts shortages. The lines will resume operations for the afternoon shift, a company spokeswoman said.

Toyota said on January 10 that it was cutting production of its full-size Tundra pickup truck due to the global semiconductor shortage. The company plans to cut production on its San Antonio-made Tundra model by 40% this month due to the limited supply of chips.

In China, Toyota shut down lines at its Guangzhou plant on Jan. 11 due to parts shortages. Toyota operates the facility jointly with Guangzhou Automobile Group Co .; the plant has produced more than 300,000 vehicles per year in recent years, including the Camry. The lines resumed operations on the eve of January 12, as the necessary parts could be purchased, spokeswoman Shino Yamada said.

Honda Motor Co.

Honda sees the impact of the shortage of chips in China and plans to cut production. “We will replace some models and adjust our shifts as necessary,” a Honda spokesperson said Jan. 13. On the same day, Honda again said it would halt production in Swindon from January 18 due to supply issues, and aim to restart. January 22.

In North America, Honda announced this week that it will cut production of the Accord, Civic and Insight sedans, as well as the Odyssey minivan and the Acura RDX, a crossover sport utility vehicle. Honda will adjust production at its plants in Marysville and East Liberty, Ohio, as well as its facilities in Alabama, Indiana and Canada. Honda will cut production by a few thousand units by the end of January, and the adjustment will likely continue, according to the Nikkei, which previously reported the declines at Honda North America.

Honda was one of the first global automakers to warn of chip shortages, announcing a two-day shutdown of production at its UK plant on January 5-6. Established in 1985, the Swindon plant produces Civic sedans and employed approximately 2,900 workers as of November. The plant is expected to operate until July 2021, when it was marked for closure, a decision announced in 2019.

Nissan Motor Co.

Production of the compact Note hatchback will be cut by around 8,000 units this month, as part of a total production cut that could exceed 10,000 vehicles and will last until March, reported Nikkan Kogyo January 15th. A Nissan spokeswoman declined to comment on details of the production cut.

Nissan said on Jan.8 that it was cutting production at one of its factories in Japan this month. “A global semiconductor shortage has affected the supply of spare parts to the automotive industry,” spokeswoman Azusa Momose said. “Due to this shortage, the Oppama plant in Japan will adjust production in January, reducing production of the Nissan Note.”

Subaru Corp.

Subaru will cut production by a few thousand units each in January at factories in Japan and the United States, a spokesperson said on January 14.

“We are adjusting the production of several models at our facilities in Gunma and in the United States due to chip delivery delays,” the spokesperson said. “The adjustment started January 11 for Gunma and January 8 in the United States. We are checking the end dates. Other companies are involved in the delivery delays, so our plan depends on it. The impact on production in February and beyond is unclear. “

Subaru is also shutting down its main Gunma plant, as well as factories in Yajima and Oizumi, Japan for two days starting Friday due to a shortage of chips. The automaker said it was assessing the impact on its fiscal 2020 results.

Suzuki Motor Corp.

There will be an impact on production, but the automaker is still checking details, including which models may be affected, a spokesperson said by phone Jan.12.

Mitsubishi Motors Corp.

Although Mitsubishi Motors is still checking the impact on production, it hasn’t been forced to adjust production yet due to chip shortages, a company spokesperson said on Jan.12.

Mazda Motor Corp.

Mazda is currently examining whether there has been an impact on production, spokesman Naoto Mawatari said by phone on Jan.12.

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