Covid and chips have caught up with Honda supply chain
40 percent delivery cut expected, Civic Hatchback still on schedule
While Honda had remained one of the few automakers seemingly unaffected by microchip shortages and COVID-related production issues, that may be about to change. A new letter sent to American Honda dealers claims that a resurgence of the virus in Southeast Asia, along with the chip issues, will soon impact Honda production and deliveries here.
The letter, posted to CivicXI.com, reportedly comes from American Honda sales VP Mike Kistemaker. It says that COVID-19 “has converged with the microchip issue” and is “causing further disruptions to our capacity around the world.” Honda expects dealer business “to be impacted over the next several weeks.”
That means dealer shipments are expected to drop 40 percent starting this week. The letter said some models will be more affected than others, with Pilot and Passport expected to remain steady. The Honda Civic Hatchback is still expected to start production in late September, as scheduled.
In a statement to Automotive News, American Honda said that “Our purchasing and production teams continue to carefully manage the available supply of parts to run production and meet the needs of our customers,” adding that the automaker would not discuss volume or plans in detail. That statement also said that there would be an update on the Civic Hatchback “in the coming weeks.”