Toyota joins Honda in suspending production at its North American factories

Auto giant Toyota on Wednesday joined Honda in its decision to suspend work at its North American factories, due to a shortage of essential supplies needed to continue production, according to the Wall Street Journal.

The shortage has affected a number of basic materials including plastic components, petrochemicals and other requirements that Toyota needs in the production process.

Separately, smartphone leader Samsung has said a severe global chip shortage will hurt its business in the next quarter of the year.

Samsung said the current crisis could prevent the launch of a new model from one of its most popular phones, although it has indicated that this step is aimed at preventing it from competing with any of the phones. currently on the market.

The unrest reflects the pressure of many conditions on global supply chains, including conditions imposed by the coronavirus pandemic, high demand for technical goods, the build-up of imports at closed California ports and blackouts. in US factories due to weather conditions.

Honda announced on Tuesday that it would temporarily halt part of production over the next week at all US and Canadian factories, according to Reuters.

She said: “The impact of the Corona pandemic, congestion at various ports, a shortage of semiconductors and harsh winter conditions in recent weeks, all of which have led to production being suspended next week. “

It should be noted that the American President, Joe Biden, had signed, at the end of February, a decree aiming to scrutinize the supply networks of goods deemed “essential”, ranging from semiconductors, which are chips necessary for the manufacture of cars or cell phones, pharmaceuticals. products, through the important metals including in this, those necessary for the modern technology used in smartphones or plasma screens.

The White House said at the time that “in recent years, families, businesses and workers in the United States have increasingly suffered from a shortage of basic commodities, medicines and food, as well as of electronic chips ”.

The Biden administration has not specified which country it wants to reduce its dependence on supplying these products, but it appears to be targeting China, which produces most of the important minerals.