• Suzuki Motor Corp (OTC: SZKMY) cautioned regarding the continued tight supply of semiconductors and batteries from automakers’ shift toward electric vehicles (EVs), Bloomberg reports.

  • Therefore, the automaker planned to raise its stockpiles to counter the crisis.

  • Due to a range of factors, including the pandemic, Japan factory fire, and the U.S.’s frosty weather, the global chip crisis hampered the production of everything from cars to game consoles forcing governments to bolster domestic supply.

  • Import reliant Japan plans to devote trillions of yen to revive its semiconductor manufacturing industry. The shift to electric and autonomous vehicles signifies higher domestic demand for high-tech semiconductors. Meanwhile, Suzuki will reconsider how it builds cars and review how it interacts with customers on procurement and supply.

  • In April, Suzuki further lowered its monthly domestic auto production plan to 71,000 units, foregoing an additional 10,000 units due to the chip crisis. The Jan. target was 89,000 units.

  • Suzuki works to make as many cars as possible by replacing some auto parts, adjusting model production, and exploring possible procurement routes.

  • Suzuki’s July output forecast recovered to 80% of its original plan, compared with 70% in June. Suzuki did not publicly disclose the FY21 production forecast.

  • The Hungary factory’s output for the June quarter will be 80% of the original plan, mainly due to the March Suez Canal blockage.

  • Price action: SZKMY shares are trading higher by 0.14% at $171.02 on the last check Friday.

See more from Benzinga

  • Click here for options trades from Benzinga

  • Renault, STMicroelectronics Collaborate On Power Electronics Systems

  • Synchronoss Technologies Stock Jumps On Raising 0M Via Equity Offering At 11% Discount

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(305) 707 0888