![]() However, all of its North American manufacturing plants were back to normal production by April 2021. How Has Honda Been Affected by the Chip Shortage?ĭue to the chip shortage, Honda had to cut vehicle production in 2021. ![]() Now that demand for new cars has normalized, automakers cannot yet get the steady supply of semiconductors needed to increase vehicle production. Microchip manufacturers shifted production toward where demand was needed and away from carmakers. Meanwhile, demand jumped for consumer electronics like laptops and desktop computers, smartphones and home entertainment devices. After the novel virus began spreading from Wuhan, China, sometime in 2019, much of the world soon went into severe restrictions and lockdowns of varying lengths that took a toll on the global supply chain.Īs demand for new cars dwindled during the early months of the pandemic in 2020, car plants reduced orders for semiconductors. The pandemic has profoundly affected our world, from global health and the economy to supply chains. With these chips in short supply, something had to give, which means strains on vehicle manufacturing output until supply shortages are fully sorted. Not only are advanced driver-assistance and safety systems run on semiconductors, but so are touchscreen displays and many other convenience and comfort features that motorists enjoy every day. Microchips or semiconductors are small transistors made from silicon that are utilized in everyday electronic devices ranging from your smartphone and computer to cars and trucks.Īutomobiles are increasingly becoming like computers on wheels, and microchips power modern cars' advanced features and technologies. Here's what you need to know about the current supply chain issues, vehicle inventory shortage, and the impacts on Honda dealers like Columbia Honda: What are Microchips? New and used cars are even becoming more expensive to buy due to supply and demand forces. Low inventory on dealership lots is common across the country and vehicle brands. The current supply chain issues have led to vehicle supply issues at dealerships. Honda and many other carmakers have been short on the supplies needed to manufacture automobiles, causing them to scale back production or even halt manufacturing until supplies are available. The entire auto industry has been hit hard by supply chain issues, especially involving semiconductors or microchips. ![]() If you've been shopping for a new car lately, it's no secret that there is low inventory. How Honda Has Been Impacted by the Chip Shortage
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