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GAC Honda to suspend operations for two days over chip shortage

GAC Honda will suspend production for two days starting December 30 due to a shortage of semiconductor supplies, reports Caixin, citing Honda’s China unit and the joint venture.

The temporary halt reflects ongoing disruptions tied to Nexperia, a major supplier of automotive chips, whose supply constraints have rippled across the global auto industry.

GAC Honda is a 50-50 joint venture between Honda Motor and Guangzhou Automobile Group operating three vehicle assembly plants in China with combined annual capacity of about 600,000 units. Honda’s other China joint venture, Dongfeng Honda, has not been affected so far.

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