Subaru 'Walking on a Tightrope' After Shanghai Lockdown, CEO Says
May 12 2022 - 6:22AM
Dow Jones News
By Chieko Tsuneoka
TOKYO--The Shanghai lockdown is forcing Subaru Corp. to reassess
production volume every week or sometimes almost daily, according
to Chief Executive Tomomi Nakamura.
"We've been continually walking on a tightrope," Mr. Nakamura
said Thursday.
Subaru had to shut factories in Japan for two days in April.
Still, the company said it expects production losses to be
recovered in the second half of the year ending March 2023.
The auto maker expects to produce 1 million vehicles in the
fiscal year, up 37.5% from 727,000 the previous fiscal year.
Meanwhile, the lack of inventory at U.S. auto dealers, a problem
since last year, is getting worse, according to Subaru. Mr.
Nakamura said Subaru dealers in the U.S. had only about 5,000
vehicles on hand at the end of April, equivalent to three or four
days of sales, and 50,000 cars on back order.
It is something "we've never experienced," Mr. Nakamura said,
and "we hope to get out of this extreme situation as soon as
possible."
Write to Chieko Tsuneoka at chieko.tsuneoka@wsj.com
(END) Dow Jones Newswires
May 12, 2022 06:07 ET (10:07 GMT)
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