Thousands of Honda employees in North America are facing reduced work hours and income uncertainty as the automaker cuts back production due to a worsening semiconductor shortage. The company announced that operations at its Marysville Auto Plant in Ohio will be scaled back starting the week of October 27, 2025, citing global supply chain disruptions tied to geopolitical tensions between the Netherlands and China.
Honda stated that it is “making strategic adjustments to production as necessary to carefully manage the available supply of parts and meet the needs of our customers,” which include “temporary reductions or production suspensions”. The move affects more than 4,000 workers at the Marysville plant, who are being given limited options: continue working at reduced capacity, use paid time off, or take unpaid leave.
The disruptions stem from the Dutch government’s seizure of Nexperia, a Netherlands-based semiconductor firm, amid national security concerns related to its Chinese ownership. Following the takeover, China halted chip exports from Nexperia’s facilities, where roughly 80% of its products are processed. The resulting shortage has rippled across North America, forcing Honda to slow or suspend production at several plants.
For workers, these supply chain shocks translate directly into financial instability and anxiety. Labor union representatives in Ontario, Canada, where Honda has also cut production, confirmed that shifts have been reduced to half capacity, with temporary shutdowns scheduled. Such disruptions could last weeks, leaving many employees uncertain about their pay and job security.
The situation echoes the pandemic-era chip crisis that led to mass furloughs and delayed vehicle production worldwide. While analysts say the current disruption may not reach the same scale, the immediate burden once again falls on workers who have little control over the global supply chain or the geopolitical tensions driving it.
References:
Felton, R., Mackrael, K., & Wilmot, S. (2025, October 29). Automaker production stoppages begin over semiconductor shortage. The Wall Street Journal.
Hendrickson, S. (2025, October 27). Honda Marysville plant to reduce operations amid semiconductor supply chain issues. The Columbus Dispatch.
