Honda says domestic output could be affected by chip shortage

TOKYO: Honda Motor said on Friday that its output in Japan could be affected by a shortage of semiconductors, becoming the latest automaker hit by a chip crunch as demand rebounds from the coronavirus crisis.

"The company has begun seeing some impact in the parts supply, and to minimize the effect, we are taking measures in output transfer and quantity adjustments," a Honda spokesman said, adding that the company is examining output adjustments for each car model.

The Japanese automaker will first shrink its production by about 4,000 units this month, mainly affecting the Fit subcompact manufactured at a plant in Suzuka, a city in Mie Prefecture, the Nikkei newspaper reported earlier on Friday.

Automakers and electronic makers are facing a global shortage of chips as consumer demand has been bouncing back from the coronavirus pandemic, causing manufacturing delays.

A massive fire at a chip plant owned by Asahi Kasei Microdevices Corp (AKM), a unit of Asahi Kasei Corp, in southern Japan in October has also damaged semiconductor supply.

While Honda's inventory stock for semiconductor is secured until February, the company is "currently under examination for supplies from then on, including alternative supplies," the spokesman said.