Honda has begun scaling back production at some of its plants—becoming one of the first automakers to announce reductions tied to the ongoing chip shortage stemming from the tug-of-war between China and the Netherlands over Nexperia.
The details: Honda said Monday it will begin making adjustments at several of its North American manufacturing facilities to manage the limited supply of parts, according to an internal memo obtained by Peak of Ohio.
On October 27, the automaker started scaling back production at its Marysville, Ohio, facility, which builds the Accord and Acura Integra.
It remains unclear how much production will be reduced, how long the slowdown will last, or which other Honda plants may be impacted.
Workers at the Marysville Auto Plant—which employs more than 4,000 people—were notified of the reduction plans on Friday.
What they’re saying: “We are currently managing an industrywide semiconductor supply chain issue, making strategic adjustments to production as necessary to carefully manage the available supply of parts and meet the needs of our customers,” said Honda’s Chris Abbruzzese.
Why it matters: If Honda’s production slowdown continues, dealers could soon see fewer vehicles arriving on lots—especially high-demand models like the Accord and Acura Integra. That could further tighten inventory, limit sales opportunities, and keep new-car prices elevated heading into the final months of the year.
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Between the lines: Honda’s measured comments reflect broader concerns about how deeply the Nexperia-related chip shortage could affect automakers and their supply chains.
Calling the situation “fluid” and requiring “flexibility,” Honda said it would not provide plant-specific details or speculate beyond Monday’s announcement.
The Marysville plant reportedly has “No Pay, No Penalty” days scheduled for October 30, 31, November 3, and November 7—allowing employees to report, use vacation time, or take the day off without pay or penalty.
Bottom line: The chip shortage linked to Nexperia is beginning to ripple across the auto industry on a global level, and Honda’s production pullback may be the first of several similar moves by automakers, signaling tighter inventory and renewed supply challenges for dealers in the months ahead.
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