Honda Motor Cuts Guidance on Nexperia Chip Shortage

The Wall Street JournalFriday, November 7, 2025 at 7:46:00 AM
Honda Motor Cuts Guidance on Nexperia Chip Shortage

Honda Motor Cuts Guidance on Nexperia Chip Shortage

Honda Motor has revised its annual earnings forecasts downward due to a significant chip shortage from its Dutch supplier, Nexperia. This shortage has impacted Honda's production capabilities, leading to a reported decline in net profit for the first half of the year, which is further compounded by U.S. tariffs. This situation highlights the ongoing challenges in the automotive industry related to supply chain disruptions and the critical role that semiconductor availability plays in manufacturing.
— via World Pulse Now AI Editorial System

Was this article worth reading? Share it

Recommended Readings
Nexperia chip exports from China have resumed, says car parts supplier
PositiveFinancial Markets
Nexperia has resumed its chip exports from China, a significant development for the automotive industry. This comes after a previous halt due to tensions with the Dutch government over trade regulations. The resumption is crucial as it ensures a steady supply of essential components for car manufacturers, helping to alleviate some of the ongoing supply chain issues that have affected the industry.
Netherlands prepared to drop Nexperia controls if chip supply resumes - Bloomberg
NeutralFinancial Markets
The Netherlands is considering lifting its controls on Nexperia, a semiconductor company, if the global chip supply stabilizes. This decision reflects the country's response to ongoing supply chain challenges that have affected various industries. By potentially easing restrictions, the Netherlands aims to support the semiconductor sector while ensuring that local businesses can thrive in a recovering market.
Honda cuts annual operating profit outlook on EV cost hit, slow Asia sales
NegativeFinancial Markets
Honda has revised its annual operating profit outlook downward due to increased costs associated with electric vehicle production and sluggish sales in Asia. This adjustment highlights the challenges the automaker faces in adapting to the rapidly changing automotive landscape, particularly as it shifts focus towards EVs. Investors and consumers alike should pay attention to how Honda navigates these hurdles, as it could impact their market position and future innovations.
Netherlands Prepared to Drop Control of China’s Nexperia
PositiveFinancial Markets
The Netherlands is taking a significant step towards easing tensions with China by preparing to relinquish its control over the Chinese-owned chipmaker Nexperia. This decision could help restore the flow of critical chips essential for automotive production worldwide, which has been under threat due to escalating disputes. By potentially shelving the ministerial order that allows it to block corporate decisions at Nexperia, the Dutch government is signaling a willingness to cooperate, provided China resumes its chip exports. This move is crucial as it could stabilize the global automotive supply chain and foster better relations between the two nations.
Earnings call transcript: Honda Q2 2025 sees robust motorcycle sales amid auto losses
PositiveFinancial Markets
In its Q2 2025 earnings call, Honda reported strong motorcycle sales, which is a bright spot amid losses in its automotive division. This is significant as it highlights Honda's ability to adapt and thrive in a challenging market, showcasing the resilience of its motorcycle segment. With the automotive industry facing various hurdles, Honda's success in motorcycles could indicate a shift in consumer preferences and a potential area for growth.
Netherlands ready to drop control of Nexperia if chip supply resumes, Bloomberg News reports
PositiveFinancial Markets
The Netherlands is considering relinquishing control over Nexperia, a semiconductor company, if chip supply chains stabilize. This move could signal a positive shift in the global semiconductor market, which has faced significant disruptions. By allowing Nexperia to operate more freely, the Netherlands aims to enhance its competitiveness in the tech industry and support economic recovery. This decision reflects a growing confidence in the resilience of supply chains and the importance of semiconductors in modern economies.
Honda recalls over 400,000 vehicles due to wheel detachment risk
NegativeFinancial Markets
Honda has announced a recall of over 400,000 vehicles due to a serious risk of wheel detachment, which poses a significant safety hazard for drivers and passengers. This recall highlights the importance of vehicle safety and the need for manufacturers to address potential defects promptly. Owners of affected models are urged to take immediate action to ensure their safety on the road.
Honda to recall over 406,000 US vehicles over wheel detachment issue, NHTSA says
NegativeFinancial Markets
Honda has announced a recall of more than 406,000 vehicles in the U.S. due to a serious issue that could lead to wheel detachment while driving. This recall is significant as it highlights ongoing safety concerns in the automotive industry and the importance of vehicle maintenance. The National Highway Traffic Safety Administration (NHTSA) is involved, emphasizing the need for manufacturers to prioritize consumer safety.