Honda Halts Production At Three China Plants Due To Chip Shortage

Honda has stopped car production at three factories in China, and once again, it comes down to a lack of chips.

The plants, which Honda runs with Guangzhou Automobile Group, were supposed to start up again on January 5. That’s now been delayed, and production won’t resume until January 19, according to the company.

The issue is late chip deliveries from Nexperia, a supplier linked to China’s Wingtech Group. Without those parts, the factories simply can’t build cars.

This isn’t the first time Honda has faced this problem. Late last year, the brand also had to pause production at some of its North American plants for the same reason. Despite all that, investors didn’t panic. Honda’s shares still went up by nearly 2 percent, showing confidence that this is just a temporary bump in the road.