Global Auto Production at Risk
Automakers face production challenges due to a microchip shortage, with Honda cutting output of Civic sedans and CR-V SUVs by half.
Global auto production faces disruption as Nexperia chip export halt triggers shortages at Honda and other automakers.
Causes of the Shortage
The shortage follows Nexperia, a Netherlands-based chipmaker, halting exports from China due to a geopolitical dispute involving the Dutch, Chinese, and U.S.
Impact on Automakers
Honda has already cut production by half at its Alliston, Ontario assembly plant, slowing output of Civic sedans and CR-V SUVs through early next week.
- Nexperia's chips are used in systems such as locks, climate control, and speedometers.
Nexperia may not produce the most advanced semiconductors, but automakers widely utilize its chips.
Author's summary: Global auto production is at risk due to microchip shortage.
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