Mitsubishi to cut global production amid worldwide chip shortage

Mitsubishi to cut global production amid worldwide chip shortage
© Getty Images

Mitsubishi is planning to cut production at its plants worldwide next month due to a global shortage of semiconductor chips that has rocked the automotive industry.

A company spokesperson told The Hill that the move will result in 16,000 fewer vehicles produced, but that Mitsubishi plans to make up for the temporary shortfall within this fiscal year.

Bloomberg News, which first reported the production cuts, said the reduction represents nearly one-fifth of Mitsubishi's total output.

ADVERTISEMENT

The company produced 88,754 vehicles in February.

Mitsubishi earlier this month cut production by 7,500 vehicles at three plants in Japan and Thailand, Reuters reported at the time.

The cuts come as the auto industry grapples with the impact of the semiconductor shortages.

General Motors has halted production at several plants due to the shortage, most recently at factories in Tennessee, Michigan and Mexico.

Ford said on Thursday that four of its plants in the U.S. and one in Canada will remain shut for an additional two weeks after halting production earlier this month.

President BidenJoe BidenSunday shows preview: US reaffirms support for Ukraine amid threat of Russian invasion The Fed has a clear mandate to mitigate climate risks Biden says Roe v. Wade under attack like 'never before' MORE met earlier this month with executives from the auto industry about the shortage, and its impact on automakers.