Subaru to suspend production in Indiana plant due to chip shortage

Subaru said on Tuesday that it was suspending production at its plant situated in Indiana through the end of April because of a global shortage of semiconductors.

Automakers including Ford Motor, Nissan Motor have slashed production over the shortage of chips.

Chips are used extensively in the cars for automatic windows, parking assistance and entertainment systems.

A Subaru spokeswoman said 15,000 vehicles for North America would be impacted with these steps.

She said that the ongoing global shortage for chips, instead of a recent fire at Renesas Electronics’ chip-making factory, was the major factor behind the suspension.

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic last year, rival against the sprawling consumer electronics industry for chip supplies.