Mexico Gas Squeeze Forces Japanese Automakers to Halt Production

Japan’s three biggest automakers are halting some operations in Mexico amid a shortage of natural gas in the country due to the winter storm in North America, spokespeople for the companies said Friday.

Mexico is grappling with the shortage after a cold front affected exports from Texas, prompting authorities to ask automakers and other industries to reduce their consumption of natural gas. The halts by Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. follow similar moves by Volkswagen AG, which said Thursday it is stopping production of three car models.

Toyota stopped all shifts at its plants in Texas and Mississippi on Thursday due to the storm, which has piled further pressure on an auto industry already facing disruptions due to a global shortage of chips used in cars. Toyota and Nissan also this week announced production halts in Japan due to the impact a magnitude-7.3 earthquake had on suppliers.

Here is a list of Japanese automakers’ adjustments in Mexico:

  • Toyota will pare back production at its plants in Guanajuato and Baja California in the coming days.
  • Honda shut its plant in Guanajuato on Wednesday afternoon and it is likely to remain closed for the rest of this week.
  • Nissan is bringing forward plans to halt the second line of its plant in Aguascalientes.

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