Japanese Honda and German Audi automobiles said Wednesday, March 19, that they were temporarily suspending production in their plants in Mexico due to a lack of inputs and a weak demand for vehicles amid the global COVID-19 pandemic.
Honda said it will idle its plant in central Guanajuato state from March 23 to March 31, as part of a larger company strategy that has also affected plants in Canada and the United States.
The measure will cut North American regional output by some 40,000 vehicles, the company said in a statement.
“Approximately 27,600 Honda partners in North America” will be affected by this temporary suspension, it said.
Audi, which opened a plant in Mexico in 2016, said it will halt production from March 23 to April 13 because of a lack of inputs, a problem that has also impacted its plants in Germany, Belgium and Hungary.
The company said its plant in Mexico’s central state of Puebla lacks parts and materials for the Audi Q5, and has also experienced delays in transporting finished products to its destination markets.
Mexico, home to 126 million people, has so far confirmed 118 cases of COVID-19, with one death.