Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Japanese car manufacturer Honda Motor Co. said on March 16 that it will halt production in Canada and United States for a week due to supply-side constraints, according to media reports. 

Difficulty in procuring semiconductors has resulted in several top auto manufacturers  pausing production. Supply of semiconductor chips from Asia is hit due to port congestions. 

Honda plants in Ohio, Indiana, Alabama and Ontario and Canada will be shut for a week. However, the loss of production in terms of units was not disclosed.

Honda had to shut production in January at four plants in North America because of the shortage of semiconductors. Dearth of material has led to a huge increase in cargo from Asia which has caused delays at ports on the west, according to media. 

Production in US also struggled due to the cold wave in February and severe power outages in Texas — which led to suspension of production by some auto parts manufacturers. 

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