Auto Plants Suspend Operations in North America
OREANDA-NEWS. The first auto factories in North America began to shut down due to supply disruptions. Japanese automakers were the first to suffer.
Toyota Motor, the world's largest automaker, has announced the suspension of operations at its North American factories: a US vehicle assembly plant in Kentucky and Mexico, and a US engine plant in Alabama.
Supply disruptions also affected Honda Motor, which is suspending the work of five plants in the United States (Ohio, Indiana, Alabama) and in the Canadian province of Ontario for a week. This was reported by the Nikkei Asian Review. The shutdown follows Honda's production cuts at four North American plants in January due to global semiconductor shortages.
It is reported that earlier automobile concerns General Motors, Ford, Stellantis, Toyota, Volkswagen, Honda, Nissan and Subaru have cut production plans at North American plants.
However, what is happening now is the first time that so many factories have been shut down at the same time. This was during the pandemic a year earlier and during bad weather this winter. Due to the sharp increase in imports of goods after the lockdown, logistics in the United States are not doing well.
Supply disruptions stemmed from the closure of US West Coast ports, production disruptions at US component suppliers following a severe winter storm in February and power outages in Texas.