Honda Halts Production of Civic, CR-V, and HR-V Amidโ Globalโ Chip Shortage
AJAX, Ontario & Mexico City – Honda has significantly curtailed vehicle production in both Canada and Mexico due to a shortage of standard semiconductors, impacting key modelsโ including โthe Civic, CR-V, and โคHR-V. โขTheโ cutsโ signal a widening ripple effect fromโค China’s export restrictions on components made by Nexperia, a Dutch-headquartered semiconductor manufacturer, and raise โconcerns aboutโ Honda’s North American sales figures.
Theโค production slowdowns, โfirst reported by the Wall Street Journal and confirmed by union representatives and Japanese news โคagency Nikkei, come as Honda relies on Nexperia-made semiconductors forโค electrical control units in several โmodels. China restricted โexports ofโค thes components on October 4th, following the Dutch government’s โคintervention in Nexperia citing national security concerns. Honda began adjusting production in โtheโฃ United States and Canada on Monday, though specific details were not โคimmediately disclosed.The company sold 1.61 million vehicles โฃin North America in 2024, โฃrepresenting roughly โ40% โof its global sales, making the region crucial to itsโข overall โprofitability.
Specifically, Honda has halved production at โคits โCanadian plant,โ whichโ manufactures the Civic and CR-V suvs, according to a union representative posting on Facebook. Simultaneously,the plantโฃ in Mexico producing theโฃ compact HR-V SUV has beenโข temporarily closed,according to Nikkei. the โdisruption threatens Honda’s financial outlookโ for the fiscal year โending โMarch โ31,โ 2026.
