SPY380.36-1.97 -0.52%
DIA309.45-4.53 -1.44%
IXIC13,192.35+72.96 0.56%

UPDATE 1-Subaru to cut annual production plan by 48,000 vehicles on chip shortage

· 02/05/2021 02:07
UPDATE 1-Subaru to cut annual production plan by 48,000 vehicles on chip shortage

Adds earnings details

- Subaru Corp 7270.T said on Friday it has cut its production plan for this fiscal year by around 48,000 vehicles due to the global chip shortage.

While the automaker expects the impact of the shortage to continue into the next fiscal year, it is unclear how many vehicles will be affected, Subaru Chief Financial Officer Toshiaki Okada said.

"We are making efforts day and night to procure semiconductor parts as much as possible and to minimise production cuts," he said.

Subaru on Friday revised its operating profit forecast for the year to end-March down to 100 billion yen ($948 million) from an earlier estimate of 110 billion yen.

That compares with an average 132.11 billion yen Refinitiv consensus forecast from 17 analysts.

In addition to the production cut caused by the chip shortage, Subaru said it has reduced its output by another 10,000 vehicles due to a global shortage of shipping containers.

The automaker could suspend or adjust plant operations in future if it cannot procure enough chips, Okada said in an earnings call. He added Subaru will maintain employment levels at its plant in Gunma, Japan, while reducing overtime work and holiday shifts.


($1 = 105.52 yen)



(Reporting by Eimi Yamamitsu; Editing by Kim Coghill and Karishma Singh)

((eimi.yamamitsu@thomsonreuters.com;))