Mitsubishi Slashes Vehicle Production by 16,000 Global Units in May due to Chip Shortage

Mitsubishi Motors Corp. announced that it is planning to reduce its global vehicle production by roughly 16,000 units in the following month due to a semiconductor chip shortage, a spokesperson for the company said on Friday.

According to a report that the Japanese automaker published on its website, it was able to produce 90,745 units globally in January and 88,754 cars in February.

Because of the plummeting demand and sales in the automotive industry due to the persisting pandemic crisis, Mitsubishi has decided to cut its vehicle production, already trimming about 20 percent of its total car production.

Following the coronavirus crisis, car manufacturers were also grappled by the prevalent semiconductor ship crisis that has intensified because of the Texas winter storm and a fire at the Japanese production plant of auto-chip maker Renesas Electronics Corp.

Before this move, Mitsubishi said in a press release last March that it would cut its domestic output of vehicles 4,000 to 5,000 units at its Okazaki and Mizushima plants due to the semiconductor chip crisis. The company was still reviewing its production plan for April by that time.

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