Japanese automaker Honda has suspended vehicle production in Mexico, with no firm timeline for a restart.
The stoppage is linked to a shortage of semiconductors supplied by Nexperia, a subsidiary of Wingtech, amid escalating regulatory tensions between the Netherlands and China.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Nexperia is a Dutch chipmaker with Chinese investors.
The Japanese automaker, which is making arrangements to resume operations, uses semiconductors made by the chipmaker.
The Celaya facility in central Mexico, which manufactures the HR‑V sport utility vehicle, has an annual capacity of about 200,000 cars and produced more than 190,000 vehicles last year.
Most of those vehicles were destined for export to North America.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataHonda also started adjusting output in the US and Canada because of the same chip shortage.
The supply disruption follows recent moves by the Dutch government to place Nexperia under special oversight, invoking the Goods Availability Act.
The Dutch measure prevents the company from relocating parts of its business, dismissing executives or making other major strategic decisions without government approval for one year.
This move came after concerns about management issues that could threaten the supply of semiconductors to Dutch and European industry.
On 4 October, the Chinese government imposed restrictions on exports of semiconductors produced by Nexperia in China.
This is the first time the dispute over Nexperia has been reported to affect Honda’s production.
Separately, Honda reported a 3.8% year‑on‑year increase in global production to 310,275 vehicles in September 2025, with output in Japan up 6.3% to 65,587 units and overseas production 3.2% higher at 244,688 units.
