On Feb. 8, 2023, the Japanese automaker Subaru Corp. reduced its annual output target by about 10% due to the persistent effects of a global semiconductor shortage.
The automaker claimed that parts for immediate delivery on the spot market were the most severely short-supplied, and it predicted that this situation would continue until June at the earliest before improving.
Subaru has revised its production expectation from 970,000 units to 880,000 vehicles for the period from this fiscal year through March, a 9.3% decrease.
Subaru’s chief financial officer, Katsuyuki Mizuma, stated, “In the third quarter, we managed to minimize the decline to roughly 20,000 units compared to our plans through our efforts.”
According to Mizuma, Subaru anticipates producing 70,000 fewer vehicles than anticipated in the fourth quarter that ends March 31. After the results were released, the company’s shares declined, closing 1.9% lower at 2,118 yen compared to a flat general market.
On the other hand, several automakers have been playing catch-up in terms of manufacturing after reducing output in response to the COVID-19 outbreak. Such as, chipmakers sending fewer shipments to the consumer electronics industry.
Subaru cut its year global sales prediction on Feb. 7, by 5.4% to 870,000 vehicles from its earlier forecast. Despite the cutes, it still marks an 18.5% increase over the fiscal year 2022.
The company maintained its $2.29 billion annual operating profit prediction, noting its efforts to reduce costs and increase efficiency throughout the supply chain, as well as expectations about currency rates.
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