The Financial Post reports in its Friday edition that carmakers globally are reducing production due to Nexperia cutting production at its Chinese factory, leading to supply chain concerns. A Bloomberg dispatch to the Post reports that Honda has suspended operations at some North American plants, cutting output in Canada for Civic sedans and CR-Vs, while a plant in Mexico is closed. European carmakers may face production halts soon as they rely on dwindling reserves to maintain operations. Germany's Mercedes-Benz has enough Nexperia chips for the short term. Meanwhile, Volkswagen stated it needs a sufficient supply of semiconductors to meet its financial targets this year. Although the company has secured enough components for its German plants for the coming week, it could face production disruptions afterward. Volkswagen may achieve an operating profit of 2 to 3 per cent for the year, according to chief financial officer Arno Antlitz. He also mentioned that net automotive cash flow could be positive. In the U.S., the Motor & Equipment Manufacturers Association said American vehicle plants are weeks away from "significant impacts" on vehicle production if the Nexperia dispute is not resolved.