Honda reduces auto manufacturing in Mexico because of a Nexperia chip shortage

After Nexperia, which was formerly run by a Chinese parent firm, revealed issues after the Dutch government acquired control of the company, Honda said on Wednesday that it was stopping manufacturing in Mexico owing to the disruption of chip supplies.

In response to the Dutch government’s decision, China has reportedly halted exports of Nexperia products, including semiconductors for the car industry.

Honda stated that it is already taking «everything possible» to lessen the effects of the crisis, despite the fact that it announced the production halt in Mexico on Tuesday.

The length of this suspension, which is now starting to affect the US and Canada, where the automaker has modified its production, and the date on which Honda will be able to resume manufacturing in the nation are yet unknown.

Honda is among the major businesses impacted by Nexperia’s supply, but Volkswagen is also reportedly experiencing problems, despite appearing to have avoided this challenge because of another source.