Benzinga | Mar 17, 2021 09:25AM EDT

Chip Crisis, Bad Weather Impacts Honda And Toyota's North American Production

Honda Motor Co Ltd (NYSE: HMC) would suspend production at some plants in the U.S. and Canada next week due to supply chain problems triggered by the pandemic, chip shortage, and severe winter weather, Bloomberg reports.

* The automaker would stop work at plants in Marysville, East Liberty in Ohio, Indiana, Alabama, and Ontario, possibly for a week without disclosing the volume impact. Honda manufactured 1.45 million vehicles in North America last year, down 20% year-on-year. The Japanese company had 12 manufacturing plants in the U.S. and one in Canada.

* A lower supply of petrochemical products impacted Toyota Motor Corp's (NYSE:TM) U.S. and Mexico production due to the cold winter leading to the temporary halt of some lines, shifts, and potentially entire plants for several days in Kentucky, West Virginia, and Mexico.

* Both Honda and Toyota already scaled back output earlier this year due to the global chip crisis.

* Morgan Stanley Securities expected the crisis to reduce Honda's output by 300,000 units while offering some immunity to Toyota based on its self-reliance.

* Price action: HMC shares are trading lower by 0.52% at $30.41, and TM shares are down 0.39% at $151.51.