Honda is halving output volumes at its factory in Canada, where it makes Civic sedans and CR-V utility vehicles, while its plant in Mexico was shut down Tuesday, according to spokespeople.
European carmakers might need to halt production within days, the industry’s main lobby group warned in a statement on Wednesday. The continent’s carmakers are relying on dwindling reserves to keep plants from closing, according to the European Automobile Manufacturers Association. Germany’s Mercedes-Benz Group AG has enough Nexperia chips for the short term, the luxury-carmaker said Wednesday.In the US, the Motor & Equipment Manufacturers Association said that American vehicle plants are weeks away from “significant impacts” on vehicle production if the Nexperia dispute isn’t resolved.
The Nexperia spat comes amid a wider trade dispute that has seen China tighten export requirements of rare earths and battery materials critical to electric vehicles. Xi Jinping and Donald Trump met for bilateral talks on Thursday, raising hopes of a deal between the two countries that would restore global supply chains in everything from furniture to chips.Nexperia makes semiconductors used in vehicle control systems for functions such as activating windshield wipers and opening a window.
Ford Motor Co. Chief Executive Officer Jim Farley called the Nexperia conflict a “political” matter and said last week he raised it with government officials during a trip to Washington.
General Motors Co. CEO Mary Barra told investors the chip constraints “have the potential to impact production,” while Stellantis NV said in a statement that it’s “collaborating with Nexperia and other suppliers to assess potential impacts and develop mitigation measures.”
Toyota Motor Corp., the world’s biggest carmaker, said so far the Nexperia export halt has had a limited effect on production. “Toyota has not been deeply affected at the moment,” Chief Executive Officer Koji Sato said Wednesday. It is, nevertheless, a risk, he said, adding “it’s only one of the severe elements we face every day.”
Nissan Motor Co. has enough supply to last until the first week of November, Chief Performance Officer Guillaume Cartier said Wednesday.
“It’s not a small issue,” Cartier told reporters at a car show in Tokyo. He added that Nissan has a grasp of the short-term impact on its biggest suppliers, but has yet to gauge the severity further down the supply chain.
