Mazda expects chip shortage will affect 7,000 vehicles in February

Mazda Motor said on Thursday it expects a chip shortage to have an impact on its vehicle production from this month.

Mazda will modify its production plans based on the current assumption the shortage will affect around 7,000 vehicles worldwide in February, chief executive Akira Marumoto said on a post-earnings call.

The semiconductor shortage is currently a concern for global automakers to reduce production and shut assembly lines.

“The situation is extremely fluid at the moment, but we are heading towards improvement on a daily basis,” Marumoto said.

“We will minimize the impact of semiconductor shortage by our day to day consultations and adjustments with our suppliers,” he said, adding that the company’s full-year earnings forecast already reflects the impact of the shortage on sales and earnings.

Mazda raised its full-year operating forecast to zero from an earlier forecast of a 40 billion yen loss, because of the steady progress of improvement in marketing expenses, carline mix, and fixed cost decrease.

As of last week, Mazda was thinking about cutting its global output by a total of 34,000 vehicles in February and March because of a chip shortage, two sources knowledgeable with the matter said on Wednesday.

But Marumoto said on Thursday that the automaker is not going to make adjustments that would exceed 30,000 vehicles.