Mitsubishi to trim local car output amid chip shortage

Mitsubishi to trim local car output amid chip shortage

Nissan and Suzuki reportedly idling some plants in Japan and abroad as well

Workers inspect Mitsubishi cars on the Japanese automaker’s production line in Chon Buri. (Bangkok Post File Photo)
Workers inspect Mitsubishi cars on the Japanese automaker’s production line in Chon Buri. (Bangkok Post File Photo)

TOKYO: Mitsubishi Motors will reduce production by 30,000 vehicles in total in June at five plants in Thailand, Japan and Indonesia, a spokeswoman said, as a global semiconductor shortage continues to trouble the automotive industry.

The impact of the production cut has already been factored into Mitsubishi Motors’ earnings outlook for the current fiscal year, the spokeswoman said.

The global chip shortage is also forcing Nissan Motor Co and Suzuki Motor Corp to temporarily halt production at some plants in June, sources with direct knowledge of the plans told Reuters on Friday.

Nissan will idle its factory in Kyushu in southern Japan, for three days on June 24, 25 and 28, while making production adjustments during the month at its Tochigi and Oppama plants in Japan, three sources said.

Nissan will also temporarily halt production of some of its models at its Mexico plant, they said, declining to be identified because the plan is not public.

“A global shortage of semiconductors has affected parts procurement in the auto sector. Due to the shortage, Nissan is adjusting production and taking necessary actions to ensure recovery,” a Nissan spokeswoman said.

Suzuki Motor will idle its three plants in Shizuoka prefecture from three to nine days, two sources said, also declining to be identified because the plan is not public.

The plan “has not been confirmed,” Suzuki Motor spokesman said, explaining that while the carmaker gave its provisional production plan to auto part makers, it is still making adjustments to minimise the impact of the chip shortage.

Mazda Motor Corp said last Friday that it expects chip shortages to reduce its global output by 100,000 vehicles in the current fiscal year, equivalent to 8% of last year's output.

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