Subaru to suspend production in Indiana on chip shortage


Japanese automaker Subaru Corp becomes the latest carmaker to suspend production due to the microchip crisis. The automaker said on Tuesday that it was suspending production at its plant in Indiana through the end of April due to a global shortage of semiconductors.

Automakers from Ford Motor to Nissan Motor have cut production due to the shortage of chips, used extensively in new cars for automatic windows, parking assistance, and entertainment systems.

A Subaru spokeswoman said 150,000 vehicles for North America would be affected.

She said that an ongoing global shortage for chips, rather than a recent fire at Renesas Electronics Corp’s chip-making factory, was the main factor behind the suspension.

Increased demand for video games from people staying at home amid a global pandemic has also led to scarcity, analysts say.

Several automakers across the world have been already facing trouble due to the prolonged automotive microchip crisis that has been induced by the Covid-19 crisis.

(With inputs from Reuters)