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Autos & Transportation

Subaru to temporarily shut its plants in July due to chip shortage

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A Subaru logo is displayed at the Tokyo Motor Show, in Tokyo, Japan October 23, 2019. REUTERS/Soe Zeya Tun/File Photo

TOKYO, June 18 (Reuters) - Subaru Corp (7270.T) said on Friday it will cut production at Japan’s Gunma plants in July due to a global shortage of semiconductors.

"It is part of the production adjustment due to shortage of semiconductors," Subaru spokesperson said.

The plants, located in Gunma prefecture, northwest of Tokyo, will be idle on July 16.

Suzuki Motor Corp (7269.T) said the carmaker is also considering slashing production in July at Kosai and Sagara plants in Shizuoka, Japan, for two and seven days, respectively.

While the dates have not been set yet, the company spokesperson said Suzuki is "continuing to make adjustments to minimise the impact".

(This story corrects to Subaru Corp in paragraph 1, not Subaru Motor)

Reporting by Maki Shiraki, writing by Eimi Yamamitsu; editing by David Evans

Our Standards: The Thomson Reuters Trust Principles.

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