(Reuters) – The global semiconductor chip shortage is not likely to significantly affect the financial profiles of Japan’s Toyota Motor Corp or Honda Motor Co, ratings agency Fitch said in a statement on Wednesday.
The automakers have enough financial flexibility to absorb more costs and maintain significant rating headroom, even if the shortage persists till the second half of 2021, according to the statement.
The automobile industry has been grappling with a shortfall in chip supply since the end of last year, driven by coronavirus lockdowns in Southeast Asia and bulk-buying by U.S. sanctions-hit Chinese tech giant Huawei Technologies, among other reasons.
The shortage prompted top U.S. automaker General Motor Co to extend production cuts at three North American plants last week, while Honda Motor and Nissan Motor were set to sell a combined 250,000 fewer cars in the current financial year. …
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