Copyright kyodonews
TOKYO - Honda Motor Co. said Wednesday it has halted operations at a vehicle production plant in Mexico after a shortage of automotive semiconductors stemming from tensions between the Netherlands and China over a Chinese chipmaker. It marks the first confirmed case of the dispute impacting a Japanese automaker. Honda has also begun adjusting production in the United States and Canada, with reduced output in the North American market -- its main source of profits -- potentially dealing a blow to its business performance. The idled Celaya Auto Plant in central Mexico, which manufactures models such as the HR-V sport utility vehicle, has an annual production capacity of 200,000 vehicles. The plant was shut down on Tuesday, local time. Honda has declined to comment on the expected scale of production cuts or how long the shutdown might last. The Dutch government decided at the end of September to place chipmaker Nexperia, a subsidiary of China's Wingtech Technology Co., under state control, citing flaws in its corporate governance. China's government retaliated by blocking exports of Nexperia's products out of the country. The Japan Automobile Manufacturers Association last Thursday issued a statement saying it recognizes the situation "may have a serious influence on global production by companies."
