SAWT BEIRUT INTERNATIONAL

| 18 April 2024, Thursday |

Mitsubishi Motors to cut output in Japan, Thailand due to chip shortage

Mitsubishi Motors Corp will cut production by a combined 7,500 vehicles at three plants in Japan and Thailand in April, it said on Monday, citing chip shortages.

The company is examining whether there will be more production cuts in May, a company spokeswoman added.

The global shortage of semiconductors will likely extend into 2022, according to analyst Romeo Alvarez of William O’Neil and Company. He tells Reuters that the extensive investment needed to solve the problem makes the semiconductor sector a good bet for investors.

On April 5, Japan’s Subaru Corp said the automaker will shut its Yajima plant between April 10 and 27 due to a chip shortage, affecting 10,000 vehicles.

Subaru will restart all production lines at the Yajima plant in Gunma Prefecture from May 10, it said in a statement. It added that the impact on the group’s financial results is uncertain.

The production halt is caused by a global shortages of semiconductors and is not linked to a fire that hit chipmaker Renesas Electronics Corp, according to a Subaru spokeswoman.

The Yajima plant manufactures some of the automaker’s popular models, including Legacy sedan and Forester SUV.

    Source:
  • Reuters