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Mitsubishi Motors cuts production in Japan and Thailand over chip shortage

Mon 12 April 2021 10:44 | A A A

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(Sharecast News) - Mitsubishi Motors announced on Monday it would be cutting its output of cars in Japan and Thailand due to the global shortage of semiconductor chips.

A company spokeswoman said that Mitsubishi would cut its car production at three plants in Japan and Thailand by 7,500 units in April.

According to a report from Reuters, the spokeswoman added that cuts could be extended into May.

The manufacturer blamed the current shortage of semiconductor chips that was affecting most of the automobile industry as well as various technology companies.

Firms were being forced to cut production or delay the launch of products as there was not a sufficient supply of the necessary parts. Consumers were also feeling the effects of the shortage in the form of a surge in prices.

The semiconductor industry was being buffeted by the hit to supplies during the pandemic, when factories shut down to prevent the spread of the virus, and higher demand as consumer habits shifted during lockdown.

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