Global supply constraints deal heavy blow to Japanese
firms
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[October 28, 2021] TOKYO
(Reuters) - A global parts and chip shortage is taking a heavy toll on
Japanese firms with seven out of eight automakers seeing global output
drop in September, casting doubt over the central bank's view the impact
of supply constraints will be temporary.
Toyota Motor said on Thursday it saw global output slump 39.1% in
September from a year earlier to 512,765 units, marking the second
straight month of falls.
Nissan Motor's global output fell for the third straight month by 27.9%
in September, while that of Honda Motor dropped for a four month in a
row, by 30%, data released by the automakers showed.
The output cuts by the automakers are starting to affect suppliers
including Hitachi, which on Wednesday slightly slashed its consolidated
operating profit forecast for the current fiscal year ending in March
2022.
"The impact of (chips shortages) likely was stronger in the third
quarter than in the second quarter," Hitachi's chief financial officer
Yoshihiko Kawamura told a news conference.
Electric equipment maker Canon Inc also cut its 2021 operating profit
estimate by 11 billion yen ($97 million) to 272 billion yen as the cost
of procuring parts rose and as factory disruptions in Southeast Asia,
caused by COVID-19, hit sales.
With many Asian countries seeing infection numbers fall, some analysts
expect supply constraints to ease in coming months. Toyota expects
global output to recover to around 850,000-900,000 units in November.
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Nissan Motor Co., Ltd's Universal Powertrain Mounting System with a
two-layer pallet structure, compatible with EV, e-POWER (HV) and
gasoline vehicles is pictured in Kawachi-gun, in Tochigi prefecture,
Japan October 8, 2021. REUTERS/Maki Shiraki
But the output disruptions may deal a severe blow to Japan's economy, which has
relied on exports to offset the weakness in consumption as the fallout from the
COVID-19 pandemic lingers.
The Bank of Japan cut this year's economic growth forecast in a quarterly report
on Thursday, citing weak consumption and supply constraints.
But it raised its growth forecast for next fiscal year and described the
slowdown in exports and output as "temporary."
Still, the central bank warned of the risk the economy could "worsen further" if
supply bottlenecks last longer than expected or if the damage they cause grows.
($1 = 113.7000 yen)
(Reporting by Leika Kihara; Editing by Ana Nicolaci da Costa)
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